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Q&A with CompBanker, Part 1
 

M Friedman's picture
(King Kong, 1,007
 
Points)
 on 1/23/12 at 12:44pm
Christian Bale Equilibrium

Today, I have a very special treat for monkeys that frequent WSO. This weekend, I had the pleasure of interviewing one of WSO’s finest. Some say he’s part Saint, part Guru, but If you have posted on the forums seeking some good ol’ fashion advice, you probably know the name CompBanker.

He comes from a non-target, but after some serious hustling, CompBanker managed to break into a middle market investment bank. I encourage you to read his post, “How I got into Banking,” prior to reading this Q&A. Regardless, below is part one of a two part series (see part two here ) dedicated to getting to know the man, the myth, the legend, CompBanker.

--

MF: Let us start off by talking about your path to your current position in PE.

CompBanker: My path to Private Equity was very traditional. I did two years of sell-side mergers & acquisitions at a Middle Market investment bank, followed by two years of MM PE in a pre-MBA associate role, and then secured my current role as a post-MBA (without an MBA). I certainly didn’t plan it this way; I didn’t even know what Private Equity was when I started in banking.

--

MF: What were some of your highest highs and what were some of the bumps in the road?

CompBanker: My career has been full of highs and lows, but the worst had to be when the recession hit in 2008. I was an IB analyst and things went from roaring to dead literally overnight. Banks started failing, deals stopped getting done, and no one could say what was going on. Layoffs started happening everywhere and all of a sudden nothing was certain. At the junior ranks, you have no control over decisions that will impact your entire career, which makes coming to work each day quite scary.

--

MF: What were your favorite tasks or specific positions that you enjoyed?

CompBanker: On the flip side, I’ve been incredibly fortunate to be given some deals and projects that remind me why I love my job. I’m an international travel enthusiast, so I’ll take any chance I can to leave the U.S. As an IB analyst, I was sent to the U.K. to facilitate client meetings. As a PE associate, I spent a couple of weeks in Asia assisting a portfolio company. While uncommon, being able to get these types of experiences in my early 20s is part of what makes IB and PE great.

--

MF: Do you miss anything about being an analyst?

CompBanker: While I certainly don’t miss the analyst lifestyle, I will miss my analyst class. Over the course of two years, it is almost impossible not to bond with the other analysts. My class scattered throughout the country after we all finished IB, but we still visit each other every now and then.

--

MF: What initially enticed you into banking?

CompBanker: I received my degree in MIS, but I quickly realized that I didn’t want to be in that field. The problem with technology is that if you don’t truly love programming, you’ll never be as good as the guy who spends his weekends developing software in his parent’s basement. I recognized this and decided to give banking a shot, even though I didn’t really know what it was. Banking offered an avenue to kick-start my career and to learn a ton about business. I have a self-diagnosed case of insomnia, so I figured that I’d be able to handle long hours.

--

MF: What motivates you today?

CompBanker: Fast-forward to today and my responsibilities and motivations have changed dramatically. I’m now valued for my ability to manage process execution and document creation rather than my Microsoft office skills. Guiding the development of more junior employees can be incredibly rewarding but is one of the most difficult tasks I’ve encountered in my career. Furthermore, learning about new businesses is more fun as my job is to evaluate its merits/shortfalls rather than write a memorandum. Lastly, I see deals in a different light now that my own money is riding on the outcome. Having an ownership interest in the fund definitely encourages me to care about the performance of the companies in the portfolio and think twice before supporting an acquisition.

The reality of high finance, as well as any other job, is that you need to really enjoy what you do in order to be successful. As an IB analyst or pre-MBA associate, there is always a light at the end of the tunnel that you’re working towards. Once you cross that point, you’re in it for the long haul and all you have to look forward to is retirement. There will obviously be promotions along the way, but the difference between VP/SVP/Director is more a matter of pay grade than job function.

--

MF: In your initial “breaking into banking” story, you talked about how being in the Middle Market allowed for a more meaningful learning experience. Do you feel as if you received that opportunity to learn in a more hands-on-fashion than say at a Bulge Bracket?

CompBanker: I’ve worked in the middle market M&A my entire career and I view it as a completely unique world compared to that of the bulge brackets. The concept of MM analysts getting significant senior/client level interaction is not a myth and at the junior levels, the middle market is infinitely more hands on. You are judged for your interpersonal skills as much as you are for your Microsoft skills, while modeling is not emphasized. These same skills are utilized heavily in MM PE shops, while modeling skills are needed at the large cap PE funds and the megafunds. For this reason I see the MM as a different career path with very different players and responsibilities than the BB career path.

I’ve had the opportunity to interview a large number of analysts for pre-MBA associate jobs at MM PE firms. One of the questions that I always ask is: “If I were to pick up the phone and call the management team of the deals listed on your resume, would they know who you are?” The BB analysts always say no and the MM analysts almost always say yes. To me, this illustrates the difference between the middle market and the bulge bracket experiences.

“Click here to read Part 2!”

See my WSO blogs here.
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Comments

Mzz's picture

Amazing. I love that last

O
(King Kong, 1,501
 
Points)
 on 1/23/12 at 12:57pm

Amazing. I love that last paragraph.

Ambition's picture

Great interview, cant wait to

EN
(Gorilla, 717
 
Points)
 on 1/23/12 at 12:57pm

Great interview, cant wait to see it tomorrow!

I want a lady on the street, but a freak in the bed,

Go Bucks!!

AndyLouis's picture

great interview, thanks MF &

 
Points)
 on 1/23/12 at 12:57pm

great interview, thanks MF & CB

WSO's COO (Chief Operating Orangutan) | My story | Connect with me on Linkedin.

2013 WSO Conference

happypantsmcgee's picture

All jokes aside, I have had

O
(Almost Human, 9,621
 
Points)
 on 1/23/12 at 12:57pm

All jokes aside, I have had the good fortune to meet and hang out with CompBanker on multiple occasions. Great dude, intelligent and genuinely a good guy.

If I had asked people what they wanted, they would have said faster horses - Henry Ford

WallStreetOasis.com's picture

Thanks CompBanker and MF -

EN
(Human, 12,048
 
Points)
 on 1/23/12 at 12:59pm

Thanks CompBanker and MF - looking forward to Part II tomorrow!

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Private Certified User Chat

Value_added's picture

Great interview, looking

O
 
Points)
 on 1/23/12 at 1:22pm

Great interview, looking forward to the rest

Febreeze's picture

that was great, thanks.

(King Kong, 1,151
 
Points)
 on 1/23/12 at 1:25pm

that was great, thanks.

RIP WSO Chat.

duffmt6's picture

I love these. Great job.

IB
(Neanderthal, 2,304
 
Points)
 on 1/23/12 at 1:39pm

I love these. Great job.

"Social cohesion and puritanical morality place roughly on my list of concerns between whether I'll pick up jock itch at the gym this week (not likely, since I don't go the gym) and whether it'll rain in Christchurch, New Zealand next Tuesday."
-Eddie

go.with.the.flow's picture

Good Job M Friedman..dayum

EN
(King Kong, 1,109
 
Points)
 on 1/23/12 at 1:51pm

Good Job M Friedman..dayum CompBanker you look good ;)

|| But feeling good and enjoying life are prerequisites to success, not by products of it- Midas Mulligan Magoo ||

Stringer Bell's picture

I have a question for

PE
(King Kong, 1,679
 
Points)
 on 1/23/12 at 2:09pm

I have a question for CompBanker: how can I become as awesome as you are at life?

-String

CompBanker's picture

Thanks guys. Stringer Bell:

PE
(Almost Human, 8,504
 
Points)
 on 1/23/12 at 2:28pm

Thanks guys.

Stringer Bell: The secret to success is all in the branding. An intimidating account icon legitimizes anything you say.

CompBanker

trailmix8's picture

comp, you mention that the

AM
 
Points)
 on 1/23/12 at 2:29pm

comp,

you mention that the scariest part of your experience was when banks started failing and there were major layoffs. Can you please elaborate on what you feel helped you survive the layoff season and avoid getting the axe.

Domino's picture

Thank you for doing these,

(Baboon, 134
 
Points)
 on 1/23/12 at 2:54pm

Thank you for doing these, very insightful

U Accrete Me's picture

Awesome!! Loved

IB
 
Points)
 on 1/23/12 at 3:18pm

Awesome!! Loved

seedy underbelly's picture

Great interview.

IB
(King Kong, 1,090
 
Points)
 on 1/23/12 at 3:25pm

Great interview.

George87's picture

Excellent. Loved the post.

IB
 
Points)
 on 1/23/12 at 4:09pm
BCbanker's picture

Totally agree with the MM

IB
(Gorilla, 633
 
Points)
 on 1/23/12 at 4:32pm
KKS's picture

Great interview. CompBanker,

IB
(Gorilla, 633
 
Points)
 on 1/23/12 at 4:33pm
euroazn's picture

This is great, thanks!

HF
 
Points)
 on 1/23/12 at 5:14pm
LClark's picture

Thanks for this! Great

(Chimp, 2
 
Points)
 on 1/23/12 at 5:53pm
upod01's picture

Great interview. I especially

IB
(Orangutan, 264
 
Points)
 on 1/23/12 at 8:28pm

When luck shuts the door you gotta come in through the window - Doyle Brunson

txjustin's picture

great interview, thanks for

O
(Neanderthal, 2,447
 
Points)
 on 1/23/12 at 8:36pm
CompBanker's picture

trailmix8 wrote: comp, you

PE
(Almost Human, 8,504
 
Points)
 on 1/23/12 at 9:40pm

CompBanker

Mr. Hansen's picture

I look forward to the next

(Gorilla, 519
 
Points)
 on 1/24/12 at 12:06am
lucrativ's picture

The reality of high finance,

ST
(Monkey, 46
 
Points)
 on 1/24/12 at 8:16am

"Kept feeding him dollars 'till it all started to make cents."

Ambition's picture

CompBanker wrote: trailmix8

EN
(Gorilla, 717
 
Points)
 on 1/25/12 at 8:23pm

I want a lady on the street, but a freak in the bed,

Go Bucks!!

apan's picture

M Friedman wrote: I’ve had

IB
 
Points)
 on 1/26/12 at 11:30am

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