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Sunrise Finance Breakfast Primer

Presenter . Patty PhillipsExecutive Director, Career Management Center

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Sunrise Finance Breakfast Primer

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    1. Sunrise Finance Breakfast Primer Consortium for Graduate Study in Management Orientation Program 2008

    2. Presenter Patty Phillips Executive Director, Career Management Center – Simon Graduate School of Business

    3. Finance Industry Overview Investment Banking Sales & Trading Equity/Fixed Income Research Investment Management Commercial Banking Corporate Finance

    4. The Securities Industry

    5. Corporate Finance / Commercial Banking

    6. Investment Banks: MBA career paths

    7. The Securities Industry Investment Banking Sales & Trading Equity/Fixed Income Research Investment Management

    8. Investment Banking: Overview Deal primarily with raising capital, corporate mergers and acquisitions Typically offer the following services to companies, institutions, and individuals: Capital raising Advisory (Mergers and Acquisitions) Merchant banking

    9. Investment Banking Investment Banking - process of raising money for corporate clients and public institutions in the form of equity, debt, convertible, or other derivative securities through either a public issue or private placement. Mergers and Acquisitions - the process of acting as an advisor to a company that is in transactions involving the purchase or sale of a whole company, a division, or certain assets.

    10. Investment Banking Merchant Banking - the process where the investment bank acts as a principal in a transaction, either by buying or selling a stake in an M&A transaction or by purchasing newly issued securities of a firm. Advisory/Financial Consulting. This area is linked to all of the  above. Advisory and consulting includes capital structure analysis, comparable analysis, industry research, and various forms of fairness opinions.

    11. Investment Banking requires the following qualities:   Analytical skills and detail orientation Strong work ethic and a willingness to work long hours (and weekends) Comfort working with numbers and computers Client management skills Strong leadership and teamwork skills Investment Banking

    12. Investment Banking: Key players

    13. Sales & Trading The bank’s distribution arm. Responsible for selling and making a market of all financial products developed by the investment banking department and on the secondary market. On an institutional level,  customers include pension, mutual, and hedge funds, insurance companies, and high-net-worth individuals. If you are analytical and have strong people skills, sales is for you. If you live for non-stop action and can handle multiple tasks at once without leaving the seat of your chair, trading is for you.

    14. Sales & Trading Sales positions require: Sales professionals develop strong relationships with institutional investors (buy side) and serve as quarterback for the firm’s bankers and Research Analysts for their institutional clients. Client management skills Ability to “close” a deal Someone who is driven to achieve Someone with good product/industry/economy knowledge

    15. Sales & Trading Trading positions require the following qualities: Traders take positions and make markets in stocks the firm may cover. They not only advise salespeople, clients, and research analysts on individual stocks and market activity, but they also manage the firm’s risk vs. the market. Quantitatively adept Ability to make quick decisions Someone who likes a “daily report card”

    16. Research (Buy Side/Sell Side) Research incorporates quantitative research, market strategy research, economic research, and individual company research. Sell-side research is typically divided by economic sector or industry.  The analyst is normally charged with knowing a small group of stocks intimately. Sell-side analysts normally work closely with buy-side analysts and portfolio managers, as well as the investment banking and sales & trading departments.

    17. Research Research positions (buy-side and sell-side) require: Strong analytical skills and financial modeling skills Strong writing and presentation skills Strong economic and industry understanding Confidence in your analysis

    18. Private Client Services / Private Wealth Management / Private Banking The bank’s investment management division for high-net-worth individuals. Investment Management Representatives are typically generalists and offer all the services of the firm (equities, fixed income, derivatives, private equity, asset management) to high-net-worth clients. The Investment Management  function is more client-service oriented than either research or Asset management.  The job requires frequent social interaction in order to establish a book of business.  Those who choose Investment Management may work independently, but often they join a small group with an already-established clientele. If you are entrepreneurial and enjoy working with sophisticated high-net-worth investors, then Investment Management is for you. If you do not like sales, entertaining, and making "cold" calls, then you should look elsewhere.

    19. Investment Management: Overview Customer of sell side. Assets are provided by individuals (through mutual funds) or institutions (through large separate accounts). Their focus is buying and selling securities based on the fund or portfolio’s objective and investment style, and they are rarely involved in raising capital for portfolios. Portfolio management jobs are in high demand. Managers of investment accounts are called Portfolio Managers. Nearly all portfolio managers begin as a buy-side or sell-side research analyst.  In many cases, the role of a buy-side analyst and a portfolio manager is indistinguishable.

    20. Investment positions require these qualities: Strong analytical skills and financial modeling skills Strong writing and presentation skills Strong economic and industry understanding Client management skills Private Client Services / Private Wealth Management / Investment Management

    21. Investment Management: Key players

    22. Finance Overview Investment Banking Sales & Trading Equity/Fixed Income Research Investment Management Commercial Banking Corporate Finance

    23. Commercial Banking: Overview An institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit.

    24. Commercial Banking: Overview While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending to businesses. -investorwords.com Positions available in various areas: Credit analyst ? Mortgage banker Loan officer Branch manager Trust officer

    25. Commercial Banking: Overview Commercial Banking positions require: Quantitative and Credit Analysis skills Broad business understanding and people skills Sales and marketing skills – ability to “cross-sell” Ability to work cross-departmentally Accounting and writing skills Strong work ethic Curiosity

    26. Commercial Banking: Key players

    27. Finance Industry Overview Investment Banking Sales & Trading Equity/Fixed Income Research Investment Management Commercial Banking Corporate Finance

    28. Corporate Finance: Overview Financial function within a corporation (e.g., Corporate, Group or Division). Most positions require frequent interaction with other functional areas such as marketing and operations. Reports up to the Chief Financial Officer

    29. Corporate Finance: Overview Positions available in various areas:   Treasury Financial Planning & Accounting Strategic Planning Corporate Development Finance Product Development Finance Tax

    30. Corporate Finance: Overview Corporate Finance positions require: Strong analytical skills Ability to work cross-departmentally and to motivate those who do not necessarily report to you. The ability to provide financial insight into business decisions and develop pro-forma income statements, balance sheets and cash flow statements

    31. Corporate Finance: Overview Corporate Finance positions require: Strong verbal and written communication skills, as well as excellent organization and multi-tasking skills Proficiency in spreadsheet, database, word processing and presentation applications software An understanding of financial concepts, such as Net Present Value, Return on Investment and Discounted Cash flow

    32. Corporate Finance: Key players

    33. Finance Industry Summary Investment Banking Sales & Trading Equity/Fixed Income Research Investment Management Commercial Banking Corporate Finance

    34. Finance Industry Summary ALL Finance positions require: Strong analytical skills Ability to work cross-departmentally and to motivate those who do not necessarily report to you. Strong verbal and written communication skills, as well as excellent organization and multitasking skills Proficiency in spreadsheet, database, word processing and presentation applications software Cash flow projections

    35. What questions do you have?

    36. Additional resources Web sites: Hoovers www.hoovers.com Yahoo! Finance finance.yahoo.com/ Vault.com www.vault.com WetFeet.com www.wetfeet.com Periodicals: Books: The Deal Barbarians at the Gate The Wall Street Journal Liar’s Poker Business Week Monkey Business The Financial Times The Big Deal

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