Industry Chat: Investment Banking - Students

Industry Chat: Investment BankingSeptember 2016Sunshine Singer, Director of Student AdvisingMelissa Nowaczyk, Recruiting Relationship ManagerMBA Career Management

Agenda Working with MBACM Industry Overview Functions and Roles Recent Trends and Global Hiring The Job Search Recruiting for Investment Banking Offer Statistics Investment Banking at Wharton Finance Club Wharton Matching Program Q&A

How can we help?If we don’t know you,we can’t help you.

MBA Career Management Investment Banking TeamSUNSHINE SINGERDIRECTOR OF STUDENT ADVISINGMELISSA NOWACZYKRECRUITING RELATIONSHIPMANAGERCareer AdviceCorporate Relationships Self-assessment & decisionmaking Strategize best recruitingapproach for variety of employers Networking Industry InsightCo-manage employerrelationships with Career Advisor Resumes, Cover Letter &Interview Prep Manage recruiting eventsCorporate Relationships Develop employer outreachstrategy with RRMStudent Support Assist students with logistics ofon-campus interview process, jobboard postings, etc.Programming Develop programs for studentsinterested in investment bankingcareersCollaborate with professional clubs and research centers, including the Finance Club.

Industry Overview

Industry OverviewInvestment ClientServicesDebt sTradingGeographicGroupsResearch

Functions in Investment BankingInvestmentBankingCapital MarketsSales & Trading Provide strategic, financial and valuation advisory servicesRaise capital through the issuance of securitiesAdvise companies in merger & acquisition and restructuring transactionsOffer specialized products and services that satisfy the needs of corporateand government clients Raise capital for a company through an initial public offering, a follow-onoffering, a convertible offering or a debt offering Monitor global rate and credit market dynamics and how they affect clients’liability portfolios and issuance decisions Manage direct dialogue with Investment Banking coverage, debt andequity partners Provide clients for tradersIntermediary between trader and clientProvide liquidity to the marketCommit the firm’s capital and/or buy and sell securitiesManage firm’s risk and make markets by setting process

Associate Roles in Investment BankingInvestmentBanking Perform financial modeling / analysisResponsible for crafting marketing materials to win a mandateConduct due diligence and manage dealsWork with capital markets to raise capital through investors and sales forceCapital Markets Advise clients on marketing, timing and pricing of debt or equity issuance Coordinate with syndicate, sales and trading to price and sell stocks orbonds Know all priority clients and key financing decision makers Develop marketing materials for client’s managementSales & Trading Maintain relationships with institutional investors Provide comprehensive client coverage (market updates, pricing,executing client orders, marketing ideas) Assist senior traders in managing risk, liquidity and exposure Track supply and demand, evaluate market development Responsible for matching trades Settling trades with other dealers

Recent Trends in Investment Banking Junior banker lifestyle initiatives Technical questions earlier in process IB Matching Process

Global Hiring for Investment Banking

The Job Search

Mature & Enterprise RecruitingMATUREENTERPRISE Established employer relationships Annual, steady demand Extend multiple offers/yield multiplestudents Understand MBA recruiting valueprop Developing employer relationshipsInconsistent demand year-to-yearJust-in-time hiringLess clear on MBA recruiting valuepropConsulting, Banking, Sales & Trading, CPGPrivate Equity, Venture Capital, Media, RetailSocial Impact, Start-UpsHealthcare, Technology, Energy, Hedge Funds, Real egyStrategyStudentStrategyStudentStrategy Employer Info Sessions, EmployerNetworking Night, Sponsorships, OnCampus Recruiting Heavy Fall/Winter Recruiting Postings, resume book, networking Throughout year; late in year/summer offers Differentiate vs. other schools Build market share Find new ways for company engagement Develop compelling Wharton value prop Expand/maintain vibrant Wharton network Manage outreach with clubs/partners Prepare for EIS, Interviews, how todecide between firms, etc Networking-intensive Alumni-intensive

Two Strategies; One SearchMature EnterpriseEmployer InformationSessionsNetworking ExpoCoffee ChatsOn-Campus Interviews Networking ConnectionsJob PostingsWharton Community/AlumniInformational MeetingsNYC and SF ExposDigital BrandConduct a well-prioritized and balanced searchto ensure recruiting success

Tips for International Students/Global JobSeekers London Banking Summit Visa Quotas Language Skills Most banks sponsor international students

Pre-MBA Experience: Investment BankingOther11%Technology6%Consulting15%Real Estate3%Investment Management8%InvestmentBanking/Brokerage27%Private Equity5%Social Impact10%Media & Entertainment3%Diversified FinancialServices12%

What Investment Banking Recruiters Seek SKILLSEXPERIENCESOFT SKILLS Quantitative Personable Analytical Communication skills Team playerOk with careerswitchers, as long asexcelled in prior position Leader Humble Impressive GPA andtest scores Confident without beingarrogant Leadership positions Hungry Articulate Motivated Good judgment Manage stress well Good negotiation skills Record of achievement 3 to 5 years of workexperiencePrior financeexperience a bonus

Career Switching% Intern Accepted Offers – Reported “Industry 0%60%50%40%30%20%10%0%46%48%63%

Is Investment Banking for You?SKILLSCULTUREWORK/LIFE Hard working Flat organization Fast-paced Multi-tasking Take responsibility early Long hours in IB,weekend work Detail-oriented Passion for winning Tied to desk in S&T,early start, entertainingclients Client comes first Long-term wealthcreation Quantitative Team-oriented Analytical Strive for excellence Strong communicationskills Persuasive Thrive under pressureService-orientedClient-driven

Tips for Recruiting in Investment Banking Know how the firms are internally structured Industry vs. product groups How they place summer associates and new hiresKnow how the firms perceive themselves Strengths, recent significant transactions /strategic new hires How do they view their own culture?Perfect your story Why are you at Wharton? Why do you want to work in Investment Banking? Who else are you interviewing with, why? Why did you choose to work at your previous employers, why did you leave?Try to understand firm culture and personal fit Meet as many people as you can

Investment Banking Recruiting TimelineAugust – November (explore your interests, motivators and skills)Self-AssessmentAugust – January (research and identify target industries, functions and geographies. Create a job search plan.)Research & StrategyOctober – January (engage in conversations to build relationships, gather information and identify potential opportunities)NetworkingAugust – October (create a document that reflects your passion, experience and skill set)Resume DevelopmentNovember – February (create a document that complements your resume and reflectsyour interest and qualifications for specific jobs)Cover Letter DevelopmentJanuary – March (prepare for and engage in conversations about yourinterest and qualifications for specific jobs)InterviewingFebruary – (evaluate job offer(s) and manageemployer relationships)Offer ManagementMay – June (prepare for internship)Transition to WorkMBA Career Management

Companies That Made Banking InternshipOffers in 2016*Preliminary Data as of 7/1/16Bank of America Merrill LynchBarclaysCitiCITIC PECitigroup Global Markets Inc.Credit SuisseDeutsche BankEuropean Stability MechanismEvercore PartnersGoldman Sachs & CompanyGreenhill & Co, Inc.Guggenheim Securities, LLCHoulihan LokeyJ.P. MorganJ.P. Morgan Asia PacificJane StreetLazard, LLCMiller Buckfire & Co.Millstein & Co.Morgan StanleyPerella Weinberg PartnersPeter J. Solomon CompanyPiper Jaffray & Co.PJT PartnersTAP AdvisorsUBSWells Fargo SecuritiesXP Securities

Source of Investment Banking InternshipOffers: Class of 2017*Preliminary data as of 7/2/162%1%2%6%2%Wharton Job - On Campus RecruitingWharton Job - Job Posting9%OtherPersonal Networking ConnectionsMBA Career Management Contact78%Trek NetworkingWharton Alumni Contact

Timing of Investment Banking InternshipOffers: Class of 2017*Preliminary data as of 7/6/1680706050403020100

Timing of Investment Banking Full-TimeOffers: Class of 2016*Preliminary data as of 7/6/1680706050403020100

FT Salary Breakdown: Class of 2016*Preliminary Data as of 7/1/16Investment BankingNumber Accepted89Number Accepted (with salary 88data)% of Accepted16.09%Annual Salary Range 27,600- 175,00025% Annual Salary 125,000Median Annual Salary 125,00075% Annual Salary 125,000Number with Sign-OnBonus83Median Sign-On Bonus 50,000

Companies That Sponsored Students in 2016 – Intern*Preliminary Data as of 7/1/16Investment BanksBank of America Merrill LynchBarclaysCitigroup Global Markets Inc.Credit SuisseDeutsche BankEvercore PartnersGoldman Sachs & CompanyJ.P. MorganLazard, LLCMiller Buckfire & Co.Millstein & Co.Morgan StanleyPerella Weinberg PartnersQatalyst GroupUBSXP Securities

Companies That Sponsored Students in 2016 – FT*Preliminary Data as of 7/1/16Investment BanksBank of America Merrill LynchCredit SuisseDeutsche BankEvercore PartnersGoldman Sachs & CompanyJ.P. MorganLazard, LLCMacquarie Holdings (USA) Inc.Morgan Stanley

Investment Banking at Wharton

Wharton Matching Program: WhatA matching application developed by MBACM allowing companiesand student interviewees to rank candidates and banks. Using analgorithm developed by Wharton faculty, these rankings are usedto match candidates and banks resulting in enhanced recruitingand offer outcomes for both parties.

Wharton Matching Program: Why Bank Benefit A lot of time and resources are invested in recruiting Wharton MBA students. It can be frustrating if an offer is given to a student who is not interested in accepting and/or an individualwho delays their decision only to decline. Our goal is to eliminate these circumstances by recommending matches to the banks based on studentand bank preferences.Student Benefit There is a subset of students who are only considering 1-3 banks, but go on to receive multiple offers(5 ). As a result of banks exhausting their offers on this group, their classmates’ chances of receiving an offerare diminished. Our goal is to limit the number of offers a student can receive to 3 so that more students have theopportunity to receive offers.

Wharton Matching Program 2.0 Results:Total Students Recruiting for Banking175Total Students with 1st Round Bulge Bracket Interview98Total Students with 2nd Round Bulge Bracket Interview75Total Unique Offers Received from Bulge Bracket57Total Students Receiving Three Bulge Bracket Offers18Total Additional Offers due to Matching Program7Total Offers from Matching Program(accounts for students who may have received multiple) 118This Year: All boutiques recruiting on campus will participate.Students can receive a maximum of 3 offers across bulge/boutique firms.“Thank you forimplementing thissystem”Can we do this atthe otherschools?“You did anamazing job, youshould feel verygood about this”

MBACM and the Finance ClubMBACMEmployer RelationshipsFinance ClubCareer related events Industry relationships and firmknowledge Treks Identify job opportunities Coffee chats Facilitate employer-studentrelationships Speaker SeriesSkill Development Job search skill workshops Resume reviews Mock interviewsAdvising Self assessment tools Support in setting priorities, job searchplanning, etc. ConferencesSkill Development Company educational events Job search skill workshopsAdvising and Mentorship Student mentoring options Alumni mentorship programs