Detailed information for Lev Fin IB group?

I am an incoming first year analyst in IB and am trying to get into the Lev Fin group when I start (I will start as a generalist) - I am not a finance major so I was wondering if anyone had any recommendations for preparing for this group (i.e. leveraged finance books, websites, classes to take next semester, etc)? I have already started trying to network with members of the group but I don't want to embarrass myself if they start asking me technical questions.

 

Could you guys recommend any material in which I can read to prepare on some of these topics? I have a ton of IB guides, but they really focus on traditional banking and valuation/accounting type questions. Nothing like you noted above

"An investment in knowledge pays the best interest." - Benjamin Franklin
 
StudentLoanBackedSecurities:

Could you guys recommend any material in which I can read to prepare on some of these topics? I have a ton of IB guides, but they really focus on traditional banking and valuation/accounting type questions. Nothing like you noted above

https://www.lcdcomps.com/d/pdf/hyprimer.pdf

https://www.lcdcomps.com/lcd/na/2012/09/07/2012%20Guide%20To%20US%20Loa…

http://www.macabacus.com/valuation/lbo/overview

http://www.macabacus.com/terms/original-issue-discount

http://www.macabacus.com/terms/payment-in-kind

 
Best Response

anything related to debt. LBO questions are bound to come up in interviews. Try to understand the overall picture with LBOs. Some shops ask you to create a paper LBO model, but I didn't come across any that asked me to do so during summer recruiting, only during FT. Paper LBO model is nothing crazy - given 5 year projection, you just list out some assumptions, spread out cash flow over few years, and exit. Do some quick math to get to a ball park IRR number. That's the most technical lev fin interviews would get in my opinion.

 
goblan:
StudentLoanBackedSecurities:

Could you guys recommend any material in which I can read to prepare on some of these topics? I have a ton of IB guides, but they really focus on traditional banking and valuation/accounting type questions. Nothing like you noted above

https://www.lcdcomps.com/d/pdf/hyprimer.pdf

https://www.lcdcomps.com/lcd/na/2012/09/07/2012%20...

lbo/overview" href="http://www.macabacus.com/valuation/lbo/overview" target="_blank" rel="nofollow" sl-processed="1">http://www.macabacus.com/valuation/lbo/overview

http://www.macabacus.com/terms/original-issue-disc...

http://www.macabacus.com/terms/payment-in-kind

These are very helpful, thank-you

"An investment in knowledge pays the best interest." - Benjamin Franklin
 

I didn't have any individual interviews with an analyst. In the two super days I had, it was mostly associates or an associate + analyst. Here the associate would lead the discussion and the analyst would mostly observe. So, I didn't get to build much of a rapport with them at the time. Plus, the entire process was drawn out over nearly three months, and I can barely remember who I spoke to.

 

Brushing up on your general accounting skills is always a good idea.

Other than that, read through some leveraged finance debt primers. If you can, do your best at familiarizing yourself with the basics of the diff instruments (Pro rata, TLBs, HY, etc) and where they fall in seniority within the capital structure (essential for LBO modeling).

It would also be helpful to learn the various pros and cons of each piece of financing (costs (interest rates and amortization) and flexibility (prepayability, maintenance vs incurrence covenants), etc.

It's helpful to learn the basic differences between positive and negative covenants but really this will come after many fun hours pouring through OMs and credit agreements.

If the above is already old news then congrats, you're in an awesome spot. If it only sounds vaguely familiar (or completely Latin), then don't stress it, you'll pick it up fast.

Feel free to PM me with any questions.

"I know you think you understand what you thought I said but I'm not sure you realize that what you heard is not what I meant."
 

Quasi magnam nihil tempora excepturi culpa voluptatem nihil. Aliquam deserunt dolorem aut dicta. Et earum fuga molestiae consequatur dolorum quia. Est officiis in saepe in laborum suscipit eos nihil.

 

Rerum adipisci iure soluta et dicta voluptates. Fuga enim nostrum ea assumenda fugit molestias qui. Corporis incidunt aliquid nisi magnam architecto quod. Voluptas non tempore quia et ipsa enim. Voluptas aut quos repellat. Accusantium omnis autem qui earum nesciunt dolores porro. Quis ut quae consectetur quo recusandae quae.

Facilis assumenda culpa qui molestiae similique rerum tempora. Velit natus maxime necessitatibus rerum. Minima optio laudantium praesentium explicabo nobis. Iste ut at suscipit sint est asperiores doloribus occaecati. Eius iusto totam ex voluptatem et. Id iusto qui voluptatem facere. Et vitae omnis veritatis et non magni labore voluptas.

Saepe voluptas qui sit. Quasi est nihil qui doloremque voluptas et nemo. Quam magnam praesentium ab in. Minima nam sequi delectus et soluta sapiente quisquam. Neque enim ut quia. Esse aperiam officiis odit recusandae amet. Dicta sit repellendus reprehenderit deleniti quibusdam consectetur.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”