I will be starting in NYC in Equity Capital Markets (ECM) in 07. For me, it sounds like a great opp to do something a little diff. than banking. Less pitching and more focus on the markets, pricing, and the execution aspects of deals. Admittedly, I will only get to work with equity or equity-linked transactions, but I think it bodes well to careers on the buy-side or in equities. Anyone else doing ECM or have any thoughts or insights?? They would be much appreciated!!!
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Are you joining as an Analyst or an Associate?
I'll be an analyst...
ECM analysts typically do not have the same buyside exits as IBD or even DCM (assuming Lev Fin is placed within DCM).
Agree with GameTheory. ECM is not a bad place to be as an anlyst but if you have options in Corp Fin or DCM, then go for those. Corp Fin and DCM provide better exit opportunities.
Try to think this way: Corp. Finance -- Top B Schools, PE Shops DCM/FICM -- Trading, Hedge Funds, Quant Masters/PhD Programs ECM -- B Schools or Career ECM Banker
Just curious how you guys have this info? Doesn't it really depend on how smart and motivated the candidate is along with the group and bank?
I have in front of me where the last 15 people from the group went since 2000. 3 to HBS, 1 to wharton & INSEAD- 2 to mid-large size nyc HF's 1 became vc analyst, 1 in m&A, and 1 to trading among others:
Those sound like pretty decent opps-
I know ECM isn't the tops, but for putting in less hours with almost the same compensation and arguably more interesting analyst work, aren't there some decent opportunities out there?
I'd rather only hear input from current bankers...
It does depend on how smart and motivated a person is. However, IN GENERAL, Corp. Finance bankers are preferred for positions at PE shops and there are so many of them out there that any PE shop could choose from. So having been in Corp. Finance opens more doors for you. Of course, if you are at Goldman, Morgan, Lazard, etc. it doesn't really matter what your last position/role was. PE shops know that they are looking at possibly the smartest crowd on the street. Those are my two cents.
Equity Capital Markets - Description (Originally Posted: 01/03/2007)
Can someone shed some light on the type of work an entry-level analyst would do in ECM? What types of qualifications best suit the position?
Plenty of commentary on Capital Markets (and specifically ECM) throughout the forum... I suggest doing a search for this one.
what is ECM about? (Originally Posted: 07/13/2007)
I got an interview for the ECM department of a BB! I have always worked in the M&A department of small or unknown companies, so I am really excited about this.
But what do ECM´s analysts exactly do? Is the number of working hours as hard as in M&A? Are salaries similar?
Thank you and wish me good luck for the interview!!
ecm's all about IPOs and capital increases. You look at:
which equity or hybrid products are best suited to the clients' needs (IPO, issue new shares or sell existing ones, do an Accelerated Bookbuilding, Marketed Offering, Capital Increase with or without preferential subscription rights, Private Placement, convertible bonds, exchangeable bonds...)
how to price them (for IPOs some valuation from stock market multiples and DCF, sometimes done by M&A depending on bank, look at investor and analyst perception of sector/stock...)
what size can the client issue (market depth, capital strucutre)
who will get diluted by the equity issue and what can you do about it (preferential subscription rights, warrants)
In my opinion M&A's more interesting (and you may earn a little bit more), but ECM pay is still very good, there is still a technical side to it as well as a strategic one, and working hours should be slightly better. Go for it, sounds like a good opportuntity.
Equity Capital Markets Tips? (Originally Posted: 03/15/2010)
Hello,
I've recently been working at a small hedge fund as a trader and have an interview at a bulge bracket for a junior level position in Equity capital markets. Any suggestions you all have for what skills I need to emphasize in the interview will be much appreciated. I've also talked to a few people but if anyone can shed some more light on what a junior level position in ECM will entail, that would be great as well.
Thanks, Josh
Hi jsutton,
Check my posts about ECM, I wrote a feedback of my internship. Scratchy
lol - where you interviewing?
Ask away
ignore jimbo
ecm sucks don't do it
I am a little biased as I have taken a FT offer on an ECM desk, but I think people need to take into consideration what they are looking for. Not everyone wants to do M&A, work 100 hours a week, and move onto PE after 2 years. Some people are content having a better work/life balance and attempting to get a direct associate promotion. That's just how I am approaching my situation.
You still work a lot in ECM, but you don't learn much. You will work consistently from 8am - 9pm Mon - Thurs, 8am - 7pm on Friday and then at least 4 or 5 hours on sunday. You'll average ~70 hours per week and be doing the same books over and over again. There are no transferable skills.
That being said there are few (very few) who actually like it, so maybe you will be one of them.
All in all if you have the chance to go to IBD vs. ECM, def go IBD if you're unsure what you want to do in 5 years.
ECM? (Originally Posted: 02/21/2007)
i've been looking through the past threads on this board about DCM/ECM and have yet to find a clear answer. can someone who works in either department tell me is ECM middle office, and if not what's the difference in work between ECM and CorpFin?
ECM-DCM is clearly front office. Those who say it's not are either not in the industry or are arrogant fucks who feel like M&A is the only/ultimate front office position.
I'm not in ECM, but basically what they do is keep clients updated on conditions in the equity market (when/how much equity should the company issue or buyback), and what products the client should use (ordinary shares, preference shares). They also suggest operations and execute the equity issues / buybacks with syndication, traders and sales.
A fairly common example where M&A and ECM work together can be a "dual track". The departments team up to advise the client on 2 options for the disposal of a subsidiary or company in a PE portfolio: - M&A will do the heavy modelling and say who the entity can be sold to, for how much, and how (time, cost, risks and complexity of disposal) - ECM will say how much the entity can be floated for on the stock market, how (time, cost, risks and complexity of flotation) Then the client choses and the deal is executed by whichever team presents the most interesting "exit".
which one is the best ECM group on the street? what kind of exit ops are available?
I can think of trading, equity research, hedge fund.
From what I hear the amount of modelling varies quite a bit from between banks; it's not a model intensive job but at some firms ECMs do their DCFs but others don't. To be confirmed. At the end of the day if you get an ECM interview inquire about the modelling and scope of responsibilities. The more the better of course.
What about pay in ECM? Assuming it falls under the IBD is it comparable to other groups? Some past posts have claimed it is a bit lower...but with less weekend hours...this true? Can anyone spit out specific analyst/assoc numbers?
Also, what is the career movement like? Same levels - analyst, assoc, VP, MC, etc? Have seen some interviews online where folks have made it from assoc to VP in 5 yrs in ECM...is it easier to progress up in ECM? Seems quick...
Thanks!
Equity Capital Markets - Within corp finance (Originally Posted: 02/17/2008)
This is within corporate finance at a BB.
What does an analyst do, learn, get paid (same as industry group?), hours worked?
What could you do after two years????? Trading? HF? Stay at the bank??
Can someone informed please fill me in. I have signed for investment banking, really do not want to ruin my life for the next two years, and like the markets. Should I do it?
ECM is quite specialized. It may not be that transferrable if you want to go to PE or others. ECM in Asia is supposed to be good, since IPOs are the mainstream. But , if it's in the US, that could be alittle bit boring, in my opinion.
I've been told that ECM has virtually no exit opps, since the skillset is so specialized.
Need some clarification. Why do people refer to the capital markets groups as being a completely different department. Isn't ECM and DCM part of the IBD, since investment banking involves capital raising and the advisory businesses? I read in some other posts that the hours are less, no exit opps, you work on the trading floor etc??
Or does it differ from bank to bank. For example in the case of Merrill Lynch, it seems that ECM and DCM are product groups within the IBD. Whereas, in some other places they seem to be a completely different department, more back office or middle office.
ms has its own Global Capital Markets division; as far as i know they are the only firm which makes it a separate division
the rest of the banks, ecm and dcm are product groups under the ibd umbrella; the reason most people don't them is because it becomes difficult to get into p/e, you don't get the m&a skillset
but ecm/dcm yields better exit opps than s&t, right?
I don't think it's considered back/middle office, but can any guys in the industry give some insight into ECM/DCM?
More importantly, what responsiblities, comp, hours and what kinds of exit ops you do after a few years there.
Much appreciated
ECM/DCM does not yield better exit opps than S&T. Traders usually end up going to hedge funds, because of the matching skill set, while sales people, from what I hear go to PE or HFs. From what I learnt from wallstreetoasis, ECM does not have any exit opps.
wow if that's true it sucks to be in ECM/DCM
ECM/DCM are front office. There was a thread on this a while ago.
Jesus Christ...back office...
Kind of work in ECM? (Originally Posted: 10/30/2016)
Hey guys, real noob monkey here.
I'm from APAC region, currently a sophomore in university. attended a interview for an internship with the ECM team at a BB. My interviewer described the work an ECM intern there and it sounded seriously like 90% powerpoint and coordinating with people on random stuff, and remaining 10% being maybe pulling and maintaining comparables and maybe some research.
My question is: is this the norm? Is this the grunt work that you guys have been saying a noob ass chimp like me would be doing? Would this really value add to my future career progression? I want to do M&A, but this opportunity came up so I'm interested to hear from you guys.
Thanks for your time!
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