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How I got into Banking
 

CompBanker's picture
PE
(Almost Human, 8,506
 
Points)
 on 11/27/06 at 3:45pm

Mod Note: bumping this thread from November 2006 up top to the forums for new members who haven't seen it. Great story from one of our top members.

So I'm new here and spent a good deal of time reading all of the posts from the past few weeks. I thought I would share my story.

So I am at a Business school in New England majoring in Computers. No banks recruit at my school with the exception of maybe 1 or 2 smaller ones. We have almost no alumni in I-Banking and I certainly don't know any of them or even bothered to find out who they were. I didn't have any previous experience in I-Banking but I had taken a couple Accounting, Finance, and Economics courses.

So I knew the first thing I needed to do was build both my technical knowledge and industry knowledge. I purchased numerous Vault guides on everything. Investment Banking, Venture Capital, Finance Interviews, anything I felt would relate to I-Banking. I bought a dictionary of Finance terms and familiarized myself with the lingo. I even bought books such as one titled: Mergers & Acquisitions from A-Z. My friends who were finance and accounting majors lent me their textbooks to read in my spare time. I had already spent a lot of time on Yahoo tracing the market and learning about interest rates and all of the economics I could take in. Whenever I had a free moment I'd be attempting to learn more finance/accounting. This gave me the technical basics I needed.

Second, I had to get work experience. As a Computer major I had a number of internship in "computer" roles, but nothing in finance. I found a boutique bank that was willing to take me onboard part time during the semester. Not many people are willing to work during a semester for free. I set up my work hours around my classes and agreed to come in on the weekends as well. All in all my internship eats about 40ish hours a week. I think this internship was really the thing that made it possible for me to secure interviews. By working the equivalent of a 9 - 5, while simultaneously taking a full course load, I was able to prove to banks that I could handle the hours. Not to mention I proved to myself that I was capable.

There I stood with my rapidly increasing technical knowledge and an internship under my belt. My resume was quite strong with a number of extra-curriculars, a high GPA (not 3.5 but not 4.0), and some things that screamed mathematics. I had some family in similar industries so I was able to have them pass my resume through to some banks. I was also able to secure a few interviews at MM banks on my own merit. I didn't care too much for the BB firms because I'm more interested in learning as much as I can and I feel as though MM is the best way to do that. This isn't to say BB doesn't teach you anything, but MM was just a better fit for me.

So I built my own personal database of companies that I wanted to send my resume and simply used the brute force method. I must have sent out near 50. Looking back at the process, I definitely should have done 75 to 100. I saved myself time and didn't bother sending it to Goldman, MS, and the likes.

Obviously things didn't end there. All of my preliminary interviews were done over the phone. Banks simply didn't go to my school. I spent about 30 - 50 hours going over my resume, perfecting answers to any possible question that could be thrown at me. I continued to read the WSJournal daily to ensure I was up to date (not to mention I think its interesting ... but thats besides the point). I practiced doing math quickly in my head while I was in the shower. Interview prep took over the little free time I had and was always the last thing on my mind going to bed and first thing in the morning.

Another thing. Every company that granted me an interview I researched intensely. If they were publically traded I read through their 10Ks and charted their historical stock performance. I had at least 10, sometimes 20 questions prepared per interview. Often times I was telling the interviewer things they didn't know about their own company.

I'm no super-hero and I'm definitely not at an Ivy League school. I fumbled up on numerous accounting questions during my interviews and my SAT scores weren't 1600. However, I was able to really demonstrate my interest and excitement to be an analyst and that was the key selling point. Most of all, I was sincere. This is truly the career path I want and the work is thousands of times more interesting than coding 9-5 in some dark room.

50 - 75 interviews later, I was finally given an offer. I'm not going to a bulge bracket or even to New York, but I can say that I'm going to be working for a top tier Middle Market bank.

I guess I don't have a purpose for this post other than to give encouragement to those who have seen nothing but rejection thus far. There is hope, but you have to really want it. I haven't had more than 2 straight hours of relaxation for the better half of the year but its nothing compared to what I'll be put through as an analyst. So, if after sitting down and determining this is really what you want, dive into it head-first and I promise it will pay off.

CompBanker
Tags:
cubegc's picture

good job

 
Points)
 on 11/27/06 at 2:36pm

Congratualtions. That's just the determination necessary to get into this industry when you aren't coming from a target school. It's tough, but it can be done.

vadremc's picture

I agree; Good Job

HF
(Gorilla, 596
 
Points)
 on 11/27/06 at 2:54pm

I certainly applaud your intensity and dedication to learning the craft and perfecting your personal brand. One question; you worked so hard, but why did you short yourself by ignoring the BB's? Are you working toward getting on the street and going to work for a BB?

"Cut the burger into thirds, place it on the fries, roll one up homey..." - Epic Meal Time

cubegc's picture

curious

 
Points)
 on 11/27/06 at 3:07pm

I'm curious, if you do work for a top MM firm, and would like to make a lateral move to a BB is it more or less difficult to make the move? I would assume easier since your more marketable as an analyst with experience.

ke18sb's picture

what the hell is a computer

PE
(King Kong, 1,092
 
Points)
 on 11/27/06 at 3:10pm

what the hell is a computer major

CompBanker's picture

BBs

PE
(Almost Human, 8,506
 
Points)
 on 11/27/06 at 3:10pm

From the research I did, Bulge Brackets just didn't seem that appealing. Everyone I talked to said that they don't learn as much as they would at a boutique or a middle market bank. Also, I was told experiences of people who ended up getting stuck learning how to do precisely one thing (he spent an entire year valuating cable TV channels). MM + Boutique allows for a lot more responsibility. The goal for me is to learn as much as possible and position myself for a possible transition into PE. The pay at my particular firm closely resembles street level (I basically have a matching base + hiring). To be honest, an extra 10 - 20k doesn't matter to me. I'd imagine that 10 years down the road the numbers will be big enough that my analysts salary is negligible. Lastly, I'm not a huge fan of New York. Hopefully I'll feel otherwise when opportunity comes knocking from the big city.

CompBanker

CompBanker's picture

Computer Major

PE
(Almost Human, 8,506
 
Points)
 on 11/27/06 at 3:16pm

Due to the many variations of "Computer" degrees, naming my particular degree could potentially reveal my school. Basically, my degree is in Coding, Systems Analysis, etc.

CompBanker

Wasting Time's picture

MIS = Computer/Management

(Orangutan, 293
 
Points)
 on 11/27/06 at 3:33pm

MIS = Computer/Management Info Systems is what I think he has a degree in. I'm also getting a degree in it but mine is a specialization in a Business Administration major.

I also think you went kind of fanatical... practicing math in the shower? When do bankers even use math besides basic arithmetic? I do realize you went to the boutique/MM route which is more focused on your knowledge of finance and accounting... so I guess it did you good.

vadremc's picture

for the curious and home schooled comp majors

HF
(Gorilla, 596
 
Points)
 on 11/27/06 at 4:17pm

I'll respect your decision to shroud your degree and school in anonymity but for the record, I think it's frivolous. You should be a champion of the institution with your intriguing tale of your ascendancy to the top of the MM analyst world!!!...unless...oh my gosh...you went to a home school college!!! ahhhhhhh!!!...jj

And for the record, you can make the transition from a MM to a BB. It sets you apart as a prospective candidate, but you may get reamed in the interview before being brought aboard. Prepare yourself for the carefully camouflaged, paraphrased and untimely charge, "What's wrong? couldn't get a job on/(at) the street(BB) right out of school? What fatal flaws are you concealing?" Just to make you squirm.

"Cut the burger into thirds, place it on the fries, roll one up homey..." - Epic Meal Time

aspiringmonkey's picture

how can you major in

EN
(King Kong, 1,399
 
Points)
 on 11/27/06 at 4:45pm

how can you major in computers at a business school? Do you mean MIS?
---------------------------------------------------------------
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Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

TL's picture

Congrats! It's definitely

(Monkey, 49
 
Points)
 on 11/27/06 at 5:17pm

Congrats! It's definitely great to see someone who wants it so much (and is willing to work hard to make up for any disadvantages) get the job.

Though while I understand it the idea of possibly gaining more responsibility in MM and having more ownership of your work there, I hear it's pretty difficult to get into PE from even a top-tier MM bank vs. a good group in a BB. If someone who went through the whole IB --> PE process can shed some light on this, that'd be great.

opticalcharge's picture

Re: for the curious and home schooled comp majors

IB
(Orangutan, 354
 
Points)
 on 11/27/06 at 5:30pm

I won't call his bluff. His hard-work sounds exactly like what a determined kid should be experiencing/doing. Actually, it sound pretty realistic, something you don't find on here!

vadremc:

I'll respect your decision to shroud your degree and school in anonymity but for the record, I think it's frivolous. You should be a champion of the institution with your intriguing tale of your ascendancy to the top of the MM analyst world!!!...unless...oh my gosh...you went to a home school college!!! ahhhhhhh!!!...jj

And for the record, you can make the transition from a MM to a BB. It sets you apart as a prospective candidate, but you may get reamed in the interview before being brought aboard. Prepare yourself for the carefully camouflaged, paraphrased and untimely charge, "What's wrong? couldn't get a job on/(at) the street(BB) right out of school? What fatal flaws are you concealing?" Just to make you squirm.

CompBanker's picture

IB to PE

PE
(Almost Human, 8,506
 
Points)
 on 11/27/06 at 5:31pm

The bank I will be working for said they have an extremely high transfer rate from IB to PE. The percentage I was most often quoted was over 50% of 2 year analysts get placed in PE. Also, I'd imagine as long as I work hard and stay on the top of my analyst class it will be an easy transition. I don't need to be working for Blackstone to be happy so this is a great move for me.

CompBanker

TL's picture

Re: IB to PE

(Monkey, 49
 
Points)
 on 11/27/06 at 6:02pm
CompBanker:

The bank I will be working for said they have an extremely high transfer rate from IB to PE. The percentage I was most often quoted was over 50% of 2 year analysts get placed in PE. Also, I'd imagine as long as I work hard and stay on the top of my analyst class it will be an easy transition. I don't need to be working for Blackstone to be happy so this is a great move for me.

Yeah, I was actually about to ask... if they tell you what kind of PE shops the bank's analysts transfer to. To be fair, very few people ever get hired by Blackstone, KKR or Carlyle, but I was wondering what the chances of going to second-tier PE shops are.

khalestine's picture

Interesting...

CF
(Monkey, 30
 
Points)
 on 11/27/06 at 6:17pm

CompBanker,

I salute you on your hard work and well-earned position, I also had a few questions but those before me asked them and were answered. It seems that you created a primer for those that go through a more non-traditional way of making it into banking.

P.S. - I am stealing some of your responses because they are pretty good and have a bit more substance to them.
___________________________________________________
Hawtness is a state of being, not how you look like...
I'm pretty, so pretty...

cubegc's picture

personality

 
Points)
 on 11/27/06 at 6:29pm

I think the two biggest things you need to show are a hunger to break in and even more important than that, Personality.

No offense to any superstars out there but from my experience a lot of banks find hungry charasmatic people refreshing and all together enjoyable to work with. There is definitely demand for that kind of candidate.

oldschool's picture

Congrats

 
Points)
 on 11/27/06 at 8:13pm
aspiringmonkey's picture

Re: Congrats

EN
(King Kong, 1,399
 
Points)
 on 11/27/06 at 8:46pm
oldschool's picture

?

 
Points)
 on 11/27/06 at 9:26pm
aspiringmonkey's picture

oldschool its quiet obvious

EN
(King Kong, 1,399
 
Points)
 on 11/27/06 at 9:36pm
CompBanker's picture

When I Started

PE
(Almost Human, 8,506
 
Points)
 on 11/27/06 at 9:41pm

CompBanker

vadremc's picture

Did you mean haughtiness?

HF
(Gorilla, 596
 
Points)
 on 11/29/06 at 10:05am

"Cut the burger into thirds, place it on the fries, roll one up homey..." - Epic Meal Time

Mr. Determined's picture

You describe me exactly.

IB
 
Points)
 on 4/5/07 at 3:22am
viral118's picture

great post

 
Points)
 on 4/5/07 at 3:29am
CompBanker's picture

Wow, surprised this was

PE
(Almost Human, 8,506
 
Points)
 on 4/5/07 at 11:59am

CompBanker

onickjo's picture

bump for others to see

(Baboon, 122
 
Points)
 on 7/4/07 at 3:29am
Fupa Trooper's picture

wow...that is sad

IB
(Chimp, 2
 
Points)
 on 7/4/07 at 12:20pm
cain's picture

Re: wow...that is sad

 
Points)
 on 7/4/07 at 1:51pm
greenbullets's picture

Good post Compbanker. Your

O
 
Points)
 on 7/4/07 at 11:22pm
IBmonkey's picture

Your drive and determination

IB
(Chimp, 1
 
Points)
 on 7/5/07 at 5:22am
polo888's picture

inspiring ! thanks for

(Chimp, 5
 
Points)
 on 7/7/07 at 11:02pm
del_monte's picture

do you guys realize that the

(Monkey, 36
 
Points)
 on 7/8/07 at 12:30am
Restructure This's picture

I know enough living

O
 
Points)
 on 7/8/07 at 1:41am
CompBanker's picture

del_monte ... attention to

PE
(Almost Human, 8,506
 
Points)
 on 7/8/07 at 12:07pm

CompBanker

del_monte's picture

I am not going to be

(Monkey, 36
 
Points)
 on 7/8/07 at 1:45pm
CompBanker's picture

I suggest you stay out of

PE
(Almost Human, 8,506
 
Points)
 on 7/8/07 at 2:49pm

CompBanker

eyedea's picture

do banks actually ask for

 
Points)
 on 7/8/07 at 3:11pm
marcellus_wallace's picture

good story dude. One

ST
(King Kong, 1,617
 
Points)
 on 7/8/07 at 7:40pm
del_monte's picture

pal, I have no problem with

(Monkey, 36
 
Points)
 on 7/8/07 at 10:21pm
jman's picture

lol

 
Points)
 on 7/9/07 at 1:05am
onpar1's picture

I'm not going to call this

O
(Monkey, 44
 
Points)
 on 7/9/07 at 9:41am
net worth or nothing's picture

Re: I'm not going to call this

O
(King Kong, 1,146
 
Points)
 on 7/9/07 at 10:24am
ideating's picture

I don't understand why you

O
(King Kong, 1,548
 
Points)
 on 7/9/07 at 10:36am

Financial Modeling Training
Guide to Finance Interviews
Banking Resume

bill86's picture

regardless of whether this

O
 
Points)
 on 7/9/07 at 2:45pm
CompBanker's picture

Oh man, I only wish I had a

PE
(Almost Human, 8,506
 
Points)
 on 7/9/07 at 10:12pm

CompBanker

Mzz's picture

fantastic post!

O
(King Kong, 1,503
 
Points)
 on 7/10/07 at 12:09am
pezzonovante's picture

Ignore those people bro,

(Baboon, 116
 
Points)
 on 7/10/07 at 6:37am
CompBanker's picture

Hi All, So, nearly 2 years

PE
(Almost Human, 8,506
 
Points)
 on 10/17/08 at 9:54am

CompBanker

Alphaholic's picture

Hey Comp

CO
 
Points)
 on 10/17/08 at 5:59pm
CompBanker's picture

Alphaholic, I actually

PE
(Almost Human, 8,506
 
Points)
 on 10/17/08 at 8:37pm

CompBanker

yung_gekko's picture

Getting into PE

IB
 
Points)
 on 10/19/08 at 12:06am

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