Getting an investment banking job as a private banking client?
Hello everybody,
A friend of mine asked me to post this -- he's thinking of moving some funds to a major investment bank's wealth management/ private banking division with the hopes of acquiring an internship and a full-time job position.
He's wondering what is the benchmark $$ amount for such an account? He'd like to hear the word on the street before speaking to representatives.
Reply to us if you know anybody who's done it before, or whether this kind of deal exists at all. Thanks!
Addition: if it's not possible to guarantee an IBD position, would having a private banking account improve his chances compared to regular recruiting?
I wouldn't see how being a private client would allow you to get a job/internship in investment banking. They are two separate divisions and do not typically work together. I have seen people go from retail banking to investment banking by going through an MBA.
If your friend wants a job in investment banking and has a lot of money. It would be easier to buyout a medium sized company and then purchase investment banking products on behalf of the firm.
Thanks yelloweat! This is really helpful for him to know!
An additional question: would having a private account improve his chances though?
Yeah he's not going to get an internship unless he has serious clout at the firm.
An example - I heard (from a credible source, although I'm sure it could be a rumour) that Leon Black's (cofounder of Apollo) daughter got dinged by GS but he picked up the phone and her rejection became an offer.
You're not going to get an IB job just for opening a private banking account. Maybe possible if you're talking about 8 or 9 figures or something. Also more possible in China and at a place like JPM.
notthehostpitalIER, thanks for replying -- my friend is prepared to have at least 7 figures on hold at the bank for this position. Is the 8-figure benchmark something you heard that would work?
No, a guess. I'm pretty sure this won't work and if it did I sure as hell wouldn't want anybody at the bank knowing about it.
It's TECHNICALLY illegal to trade business for a job for you or a family member. So you obviously couldn't come out and just ask. It also would be pretty easy for the anti-bribery team to catch this. But my guess is with the right MD you could make it work, but it wouldn't be easy to navigate.
Ok, no I don't think this would ever work. The reason is that IB and PWM do not generate revenue for each other. That is, when an MD's performance is measured, they don't ask "how much did PWM make?" So even if you could navigate anti-bribery, and even if it wasn't illegal, there's still no upside to the MD. Besides, whatever marginal revenue you create is certainly not worth the risk.
The only person this would benefit to a great degree is the person actually managing his account--and typically that person will have no say in IB matters. For example, I have a friend/acquaintance who is an MD in PWM at a top BB and he knew exactly zero people in IB who could help me with an interview.
edit: The reason why it would have worked in Leon Black's case, for example, is that he would directly influence revenue for IBD. If it had been some rich guy who generated no activity for GS or wherever, you probably wouldn't have seen a switch.
Yep. Rumour (or fact) has it that he threatened to lower the number of deals they sent GS' way.
Yeah I don't see this working. You can't just open an account and then call someone and ask for an interview. We've helped out children of clients but very very few people in pwm on the individual side know bankers, maybe some institutional guys but even then the crossover is limited.
If your friend (you?) is generating good fees for wealth management group, I'd say its possible once the group recognizes your friend as a solid income stream. And by "it's possible", I mean the PWM MD could call an MD in IBD and maybe get your friend an interview...
That said, your friend should have moved his funds a long time ago. This probably won't work unless you have a strong relationship with the senior people in PWM.
Think about this for a moment. You're an IB MD a random MD from a division completely unrelated to yours rings up asking you to give an interview to a client who has a a rather normal amount compared to some figures seen in PWM. This kid has so much money that unless they have a genuine love for IB and 100 hour weeks, there's no major incentive for them to stay. Why would you give this kid an interview, and why would you do such a favour for someone who probably don't know while risking possible reputational damage for the firm.
I'm presuming your friend got the money from his family and if he did, why not do PWM? If his family has money they'd most likely move it over and they probably know a lot of other people with money. Join a team with some senior guys to instill confidence that they're not giving millions to a 22 year old rookie and just collect assets. Much better lifestyle than IB if you have connections to wealth and you don't have to be in a high COL place like NYC.
As others have pointed out, this is not going to happen. Say you met the minimum at JPM PB (I think it's 25mm?), at that point there is no point in working 100+ hrs as an analyst. Buy some real estate, small businesses, etc. and let the wealth continue to accumulate.
All the 'developmental' cases I've seen are like sons and daughters of CEOs the banks do business with, not some guy who has an account in a separate division (and not even a relatively big one either)
Of course it can happen, especially if your friend is in Asia. It would help greatly if his family is wealthy/powerful. "Guanxi" isn't just a river a China, to paraphrase a famous saying. It might even be possible with just a lot of money in the account (e.g. if it's an aggressive regional bank).
BTW, if your friend needs help with dating or, say, managing multiple girlfriends, his banker can help also.
Do all bankers manage multiple girlfriends?
For their clients? No, but, allegedly, it's one of the "holistic" services provided these days by the private bankers in Asia.
I don't see why not but it's a pretty dumb reason to move $25MM around. I'd just put it in CDs, live in Spain, SF and the Maldives. You could live like a king and not even spend half of the interest you'd earn off that kind of money. If you bought your houses outright you could live very well in Spain for 2,000-2,500 euros per month. I honestly don't know what you would even spend that much money on.
If he has enough money to think he could have enough pull at a bb to get himself an internship, why would he need to go into IB?
Thank you everyone for your replies! This has been really helpful :)
Has he not tried to land it on merit?
Also, as others have pointed out, why the fuck would you want to do monkey work as an analyst when you have 7/8 figures in the bank?
judging by the attitudes about spending in this forum, low 7 figures won't last a lifetime. 8 figures maybe outside of NYC, but you can't keep up models & bottles forever unless you have Bilzerian money.
here's what I'd do, and keep in mind I NEVER interact with my firm's bankers. have the kid go through normal channels at the bank where his parents' money is. get the patriarch (dad, grandpa, whomever) to ask the broker if he has any connections at the bank and tell him that his son is going through the process. if someone did that and the guy had a good amount of money with us, I'd have no problem making a connection to a banker (as long as they told me who).
what is more likely is that managers will talk to one another and this connection won't make a bit of difference in the hiring decision.
Ofcourse you won't be living like Bilzerian but if the guy has low 8 figures in the bank, he can live comfortably for the rest of his life off returns if he invests the money wisely. I don't think many bankers at a junior level could say that.
Also worth noting is if you need to pay your way into a role, you're probably not a very strong candidate....which doesn't reflect well for future career prospects.
Tell your "friend" he/she is a moron for being a millionaire and wanting to work 80hr work weeks in IB and earn minimum wage on a hourly basis.
Your "friend" should find some wealthy peers and open a fund.
This sounds pretty retarded - you can't just open a fund and expect to do well.
Plenty of funds open up, hire the right people, manage someone's wealth and maintain status quo.
It's a definitely a better idea than using a PWM account to become a junior banker.
This is an interesting conversation, actually. There's a thought process among some of you that just because you have 7-8 figures in the bank (through an immediate family member or not), that it wouldn't be beneficial to do a banking internship or job that consumes a lot of time. I take the other side of the argument.
Time and time again we hear about kids inheriting a lot of money and then becoming pieces of shit because they don't have to work and add no real value to society. Being conscious of this, wouldn't it be beneficial to spend a few years learning the ropes in banking? You will gain transferable skills, have some credibility / fulfillment, and the money is still there when you're finished after your two years. After your two years, go onto private equity and maybe co-invest, or go start your own thing. It opens up more possibilities.
@CorpFinanceGuy
Trust fund children blowing their wad is a vast minority and while I agree with you that working "hard" is beneficial, BBs would be very reluctant to bring on someone from a PWM account. Too much risk involved with losing the account and/or losing the employee.
Want to show your merit and earn the job? Sure, but going the route of using your wealth to get a job won't sit well with BBs.
Totally - I don't think you should try and leverage your way into the job that way. I was just saying I think even if you have a lot of money or your family does, its very beneficial to take an entry level banking or similar job. If you want to do something family related after that short-term experience, totally all for it.
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