Unofficial Guide to Investment Banking


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  • I will make this as entertaining as possible. I have sat in your place and every time I hear powerpoint presentation I want to scream.
  • International Student Lack of Experience Attitude Being more crafty Knowing how to position yourselfStop Blaming No Victim mentality
  • Need to really ask yourself what makes you happy. It is a moral compass. It will help you to guide you where you want to go.
  • This is important for two reasons. You need to know what make you happy and what make people around you happy. If you are truly clueless of what people want, you will be in big trouble.
  • Lincoln example.Failing at something and being a failure is not the same thing. A lot of things that are worth achieving, will require you to fail many times before you can succeed.
  • People choose to believe what they want.You need to be open-minded and be willing to experiment.
  • Most people wants happiness as well: Relationship, Money, Spiritual Stuffs
  • Unofficial Guide to Investment Banking

    1. 1. The Unofficial Guide
    2. 2. Disclosure Statement• The presentation is merely the representative of my personal views and they are not by any mean or way represent the views of my employers, my alma maters, my professional associations, my social groups and my religious affiliations. 2
    3. 3. Part 1: Big Picture Items• Brief Personal Introduction• Outline of the Presentation 3
    4. 4. Career Cycle Stage 1 Stage 2 Job Exit You Job Branding Search Opps Stage 3 Financial Retirement FreedomWe are focusing just on “Stage 1”. 4
    5. 5. Universal Banking Model Major BB Bank Asset Management Securities Services Investment Bank Commercial Banking Private Banking Treasury Services Various Groups within BB 5
    6. 6. Investment Bank Investment BankSales & Trading Structured Investment Research (S&T) Products Banking (IBD) Equities Fixed Income Other Areas of Investment BankForeign Exchange Prime Services Commodities Global Corporate Bank Risk ManagementEmerging Markets 6
    7. 7. Investment Banking (IBD) Investment Banking (IBD) Corporate Finance Capital Market (Advisory) (Execution) Industry Equity Capital Market Debt Capital Market M&A CoverageDiversified Investment Healthcare IPO Follow-onIndustries Grade Energy Real Estate Convertible Private Leveraged Issues Placement FinanceConsumer TMT Financial FIG Sponsors 7
    8. 8. The Only Formula DesiredCurrent State Your Reaction Outcome Fixed Variable Fixed 8
    9. 9. What Do Most People Want? One Single Word 9
    10. 10. Happiness “Advertising is based on one thing: happiness. And do you know what happiness is? Happiness is the smell of a new car. Its freedom from fear.Its a billboard on the side of a road that screams with reassurance, That whatever youre doing is OK. You are OK.” John Hamm as Don Draper in Mad Men 10
    11. 11. Happiness• But why it is so hard to be happy?1. Not meeting expectations • Solution: set specific goals (knowing exactly what you want) • Most people: Career (Money), Relationship (Sex), Others1. Not having enough time • Solution: prioritizing goals (what to focus on)3. Not having patience to get there • Solution: break down goals into smaller and achievable tasks 11
    12. 12. Must Clarify on Your Motivation in Life 12
    13. 13. What Do You Want? SideTracking Desired Dream Higher State Stepping Stone Gravitational Force Stepping Stone Current Side State Tracking 13
    14. 14. The PE PathTraditional Route Investment Undergraduate B-School Private Equity Banking 14
    15. 15. The PE Path Management Corporate Finance Equity You B-School Private Equity Research Capital Markets Accounting Corporate Consulting Development 15Unconventional Route
    16. 16. What Personality Trait? One Single Word 16
    17. 17. GRIT• Firmness of mind or spirit : unyielding courage in the face of hardship or danger.• "Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan press on has solved and always will solve the problems of the human race.” ~ Calvin Coolidge• “It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” ~ Teddy Roosevelt 17
    18. 18. 18
    19. 19. The Right Combination Personable Intelligent PersistenceGetting along with people. To do your job well. Dealing with rejections. 19
    20. 20. How to Succeed in Front Office? One Single Word 20
    21. 21. SELL, SELL, SELL• Building Great Professional Relationship• Forming Your Own Opinions• Adding Value in Everything with Everyone• Generating Revenues for Your Group• Dealing Effectively in Office Politics• Being Aware of Human Dynamics• Staying Alert in Social Settings• Sharpening Negotiation Skills• Taking Ownership• Taking Calculated Risks 21
    22. 22. Fallacy of Universal Truth Learn to see things from other’s perspectives. Blind monks examining an elephant. 22
    23. 23. Part 2: Networking 101• Go for both breath and depth (quantity and quality)• Take a long term view on the relationship• Networking is a two-way street• Take time to nurture relationship 23
    24. 24. Advice from Hollywood 2 Most Important Rules 1) ABC = Always Be Closing 2) Wood = Don’t Write WoodAlec Baldwin in Glengarry Glen Ross Giovanni Ribisi in Boiler Room 24
    25. 25. The Human Network Profs Family MentorsIndustry PartnerContacts You Friends Classmates Co-workers Personal Support System 25
    26. 26. Interpersonal Relationships You Professional Adviser Mentor Sponsor Personal Friend Buddy BroBlack Box Dating Date Relationship Marriage 26
    27. 27. Relationship Hierarchy Sponsors Most valued added • Mentors Highly meaningful relationship 39 • Best friends Warm Contacts Provide relevant • Industry experts industry knowledge 181 • Former co-workers Provide referrals to Professional Contacts interest-related groups • Industry associations 520 • Social groupsProvide leads to expand Contact Base to other social circles 1,030 • All inclusive 27
    28. 28. AffiliationsYou Hobby Groups Company Related GroupsReligiousAffiliations Special Interest Groups Social Groups Alma Maters Professional Associations 28
    29. 29. AffiliationsInvestment Banking TrainingProf. Damodaran: Chip Career: Professional Groups Ascend, Pan-Asian Leaders: NYSSA, New York Society of Securities Analysts: Toastmasters International: SIG Finance, Special Interest Group on Finance: TCFA, The Chinese Finance Association: ACG Global, Association for Corporate Growth: American Banker: Social Groups WSO, Wall Street Oasis: TAP, Taiwanese Asian Professionals: Asia Society New York: AsianaTuesdays: AIMNYC, Asian Ivy League Mixers: AYP, Asian Young Professionals: NYCAAA, NYC Active & Fun Asian Americans: NYAPM, New York Asian Professional Meetup: Oriented New York: Young Associate of China Institute: Even Strange Groups Like: FMF, Fashion Meets Finance: 29
    30. 30. Social Calendar 30
    31. 31. Contact Contact 2 3 Introduce 2 to 1 Single Married Introduce 2 and3 to for dating Male Male 4 for professional Buddy Mentor relationship i-Banker Sell-side Analyst Asian Non-Asian Enjoy Outdoor Enjoy Outdoor Contact Contact 1 Suggest outdoor 4 events to 2 and 3 Single Married Female Male Friend Industry Contact i-Banker Hedge Fund Asian Non-Asian Enjoy Networking Enjoy Mentoring Provide research reports to 1,2,3,4 Request 4 to Invite all of them to speak at your school“Everyone wants something. And mentor 1when you know what a man wants You Introduce them to Ask to doyou know who he is, and how to research for people and invite themmove him.” Game of Thrones them free for events in town 31
    32. 32. Part 3: Job Search Strategies• Network (75%) > Sample Works (25%) > Repeat• Focus on how to spin your story (refer to next slide)• Leverage existing relationships• Package your existing credentials• Prepare sample works 32
    33. 33. Interviewer’s Secret Checklist• What interviewer is looking for: 1. Drive to succeed (40%) 2. Culture fit (40%) 3. Technical skills (20%)• Make him/her say “YES, YES and YES”. 1. Can you make or save money for me (your boss)? 2. Can you make my (your boss’s) life easier? 3. Can I (your boss) get along with you? 33
    34. 34. Recruiting MapTraditional Route Hiring You HR Manager 34
    35. 35. Recruiting Map Most Direct Route: Cold Calling Hiring You HR Manager Your Personal Their Manager’s Contacts Contacts Contacts Your Professional Contacts 35Unconventional Route
    36. 36. Job SearchTraditional Route On Campus You Job Recruiting (OCR) 36
    37. 37. Job Search Your Affiliations Cultural Online Job Groups Religious Sites Affiliations School Alum Professional Database On Associations Campus You Job Recruiting Classmates (OCR) Family Members and Relatives Ex-Bosses, Industry Ex-Coworkers Contacts Mentors Student Professors Clubs Friends Recruiters Your Network 37Unconventional Route
    38. 38. Thank YouOpening up the floor for Q&A. 38