S&T to IBD, but too late?

Hi Guys!

Recently received an offer from a BB S&T. I was really excited. But as time goes by, I think I am more interested in IBD, but they say it's too late now for me to switch. They said I could try to lateral in a year: does anyone have any advice or insight on the probability of this?

AMA: S&O Consulting to Corporate Strategy to Analytics Consulting

I've learned a great deal from these boards over the years, and in an attempt to give back I'd like to share a bit about my path in the event anyone is interested.

As a bit of background prior to business school I worked for a financial services data and analytics company as a product manager. I was primarily focused on managing a fixed income calculator that would calculate intraday fixed income security values for ~40,000 securities every few seconds. I've always thought that this was a pretty cool product.

I then went to get my MBA and concentrated on finance and business analytics as I have always been quite interested in the use of analytics and its applications. While in my MBA I interned with a small Asset Management company and helped the company write several white papers on fixed income topics to promote the firm's thought leadership.

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Endowments & Foundations Part 2: Asset Allocation

Mod Note (Andy): Read part one here

Now that this crazy week is coming to an end I have some time to write another one of these posts. Part 1 gave an overview of the E&F industry, and now Part 2 is going to go into detail on a crucial part of the E&F investment process: asset allocation. Many call E&F professionals asset owners rather than asset managers, however I see them as both. Going through asset allocation discussions gives you exposure to a strategic side of investing that you won't find anywhere else. While you aren't out there picking stocks or modeling LBOs, you have to understand everything going on in the various asset classes to make the best possible decisions.

Asset Class Definitions

This sounds really simple, but there isn't a universally agreed upon way to define asset classes. The goal of defining classes is to group investments that are alike in potential returns and return drivers (i.e. equity like returns, sensitivity to interest rates, etc). The most commonly used asset classes are Domestic Equity, Foreign Equity, Private Equity, Absolute Return, Natural Resources, Real Estate, and Fixed Income. Most of these highest level classes will also have sub asset classes, such as L/S Equity and Multi-Strategy under Absolute Return. The goal is to have enough asset classes to properly diversify the potential returns and drivers of those returns, but not so many that you dilute the effects. Most endowments strive to maximize potential return, while minimizing downside risk, and that is exactly what a portfolio allocated to the above asset classes does.

Where is the industry going for young professionals?

At the top a lot of mega funds' equities business has slowed, given the amount of capital invested in the space, the difficulty of growing such large portfolio investments to realize a desired return and market forces. A lot of these funds - Blackstone and Apollo specifically, but the others as well - are rapidly expanding their credit businesses as banks offload these assets due to the new regulatory environment and their desire for the consistent cash flows that credit provides.

The middle market is saturated with firms and over served. With valuation multiples and the amount of capital overhang, it seems that returns in this space will also be compressed for quite some time. Traditional "generalist" models of investing are proving difficult to successfully implement and many of the more successful firms are employing specialist strategies or concentrating in a specific niche to drive value.

Advice for East Indians: Rounding out your B-School Profile and also your Resume -- 7pm ET, 10/13/15


TODAY, Wednesday October 14th 6pm ET Wall Street Mentor Arshan will be hosting a webinar entitled "Advice for East Indians: Rounding out your B-School Profile and also your Resume ", with a q&a session to follow. Arshan, an east-Indian, is an industry veteran with experience in investment banking.

What he will cover: Introduction / The Stigma / Experience / The Real Differentiator / Q&A


If you missed the webinar, it will be available on the homepage in exactly 1 month, for 24 hours November 14, 2015 before going into the WSO Video Library.

October 13, 2015 - 7:00pm
Event type: 
WSO Webinar

WSO Happy Hour Recap: NYC, Fall 2015

Thanks to all who came out this past Wednesday night for a fun evening of drinks and conversation (both professional and personal) for the first happy hour of the fall 2015 season. It's the time when all the major sports are going full swing, the weather is cooling off from the horrendous 95-degree, humid, hot garbage stench of New York, and Oktoberfest and pumpkin ales are in season and at their most delicious. The Galway Hooker pub had just recently added Bronx Pale Ale on tap, which is a delicious amber ale that makes for smooth, easy drinking at this or any other time of year.

Webinar: How To Turn 64% Of Your Interviews Into Offers -- 6pm ET, 10/14/15


On Wednesday October 14th 6pm ET Wall Street Mentor Frank will be hosting a webinar entitled "How To Turn 64%* Of Your Interviews Into Offers", with a q&a session to follow. In this presentation he will talk about the science of what specific things you can do to help increase your chances of converting your interviews into offers. *64% is based on a study that Frank and his team did researching interviews and seeing what variables gave interviewees the best chances to increase their chances for an offer.

Bio: Frank Song previously worked at Accel-KKR as a private equity investor where he focused on buyouts and structured capital investments in enterprise software and tech-enabled services companies. Currently, Frank Song is Founder of Modern Career Advice which has built a long track record of tangible results by helping private equity/investment banking/corporate finance professionals land more interviews, more offers, and more pay that they otherwise wouldn't have landed without Modern Career Advice's data-driven, scientific, and analytical strategies. Of its PE/IB/CF client base, 67% is comprised of VP/Director level and above.


If you missed the webinar, it will be available on the homepage in exactly 1 month, for 24 hours November 14, 2015 before going into the WSO Video Library.

October 14, 2015 - 6:00pm to 7:00pm
Event type: 
WSO Webinar

2015 Investment Banking Interview Prep Pack PLUS ...New updated version just released!

We are excited to announce a brand new new and improved 2015 investment banking interview Prep Pack, just in time for recruiting season!

As always, we keep improving our resources at least once a year to make sure we are staying on top of current trends. This version includes countless more investment banking related webinars in the WSO Video Library and thousands of more interview insights in the WSO Company Database...curious what's included in our new full "PLUS" package that can give you an edge?


...as always, if you are a previous customer, to get the new version free all you have to do is e-mail [email protected] and she'll send it your way :-)

Good luck this recruiting season!
Patrick Curtis
Chief Monkey & Founder, WallStreetOasis.com

BIG NEWS: 2014 WSO Compensation Report is OUT!

Dear WSO Community,

I'm pleased to announce the release of the 2014 WSO Compensation Report! We had another great year with even MORE entries than last year (over 5,000)! It took many months of hard work and finally, it's here ...and it's still free :-)

Yes, that's right, access to the FULL 155 page 2014 WSO Compensation Report is 100% free. (up from 108 pages last year). This report contains thousands of data points across investment banking, private equity, hedge funds and management consulting.

The report cuts the data numerous ways including division, city, AUM and company type and can help you know if you are getting paid enough. In the 2014 version, we even have data on target vs. non-target schools, race, GPA and major. Where else can you find interesting insights like that?

Or if you are an employer, this report will give you an idea of what range you should be paying your employees.


Here's how you get access to the full 155 page report:

Dating as an Analyst

I've been dating my girlfriend for about a year now and things have been going great. We're from the same school, have a lot in common, and all in all, it's a serious relationship that we're both committed to.

She's a year older and is currently an analyst at a firm/group that's frequently (and accurately) cited as a sweatshop on WSO. My school is quite close to NYC so I visit often and have seen her a decent amount despite the crazy hours. We're very happy right now, but I'm slightly concerned about how things might change next year once I graduate and start FT at a firm/group that's also known for obnoxious hours.

Anyone have experience dating banking analysts as banking analysts? It's tough enough dealing with one unpredictable schedule- is it even possible to deal with two? Advice on making it work?

Which sport is the most popular among financiers?

Hello WSO - Which sports would you say are most popular globally, at Wall Street, at entry to mid-level finance positions and at an executive level.

My own thoughts of this matter: (top three)

1. (by far) Golf
2. Squash
3. Tennis

Help with Waterfalls

Hi All,

I was trying to build out a simple partnership waterfall today with a preferred return and ran into some questions which I was hoping someone might help me with. For this example, let's assume there is an Investor who contributes $90mm and a sponsor who contributes $10mm. The preferred return is 9%, of which the investor and sponsor get profits proportionate to their equity contribution. After 9%, all profits are split 80% to the investor and 20% to the sponsor.

1. So when calculating the split of cash flows to investor/sponsor.. what is the most effective way to do this? I am currently using Preferred Return (which is 9% * equity contribution) and adding any unpaid preferred returns and interest on unpaid to get total preferred returns due. Then I allocate my cash flows to the total preferred due and distribute the excess under the 80/20 structure

WallStreet Prep Master Financial Modeling