MIddle Market Investment Banking
In most interview prep guides they mention why Investment Banking.. but all most of the answers are tailored towards explaining why you would want to work for a Bulge Bracket Investment Bank. What would some of the top reasons be for working in middle market investment banking?
I have a couple interviews with firms that service middle market companies throughout the southeast. I am interviewing with them because I like IB and I like the South.. However, I feel like I need to incorporate the Middle Market element into my answer somehow.
Leaner deal teams
More sponsor activity as opposed to large corporates
"Higher growth" area
Some good add'l color here: http://www.wallstreetoasis.com/forums/middle-market-ib-out-of-college
MM IB Interview and General Perks (Originally Posted: 12/05/2014)
All,
Wanted to get some insight from people - I just wrapped up a final round interview with a relatively small MM IB. Overall, I think it went well, but I made one major mistake: when the MD asked what my salary expectations were, I gave a range that was lower than my current base. The reason for this mistake was that I had forgotten about a recent raise, and when I had interviewed last year, that was the range I usually gave. Wanted to see what the best approach would be for this? Wait until i get an offer then correct it? Should I email the MD and let him know just in case, so it doesn't seem like I'm changing it up? When I gave them my range, they said the offer was going to be higher than it, my concern is that my salary after my raise is higher than the range that I gave (by a few K), so am afraid that the offer will either only match it or not exceed as much as I would like.
(if it makes any differences the MD that I said this to responded to my thank you note and said everyone was impressed and that I should hear shortly/ before holiday break at the latest since they had prior commitments to interview people)
Also, I know the BBs and some of the MM offer a meal expense after working until a certain time, and also a cab expense. I was not sure if smaller MM's also did this? Was not sure if anyone is at a small MM and would be able to shed light.
Thanks, Hugo
That doesn't really matter you'll be offered market, you'll seem like a dick if you send an email saying wait I actuially make this
Thanks, that makes sense. I'll wait to out then. Anyone have insight on my 2nd question: " Do all MMs offer meal expenses after working until a certain time and/or cab expenses, or are these more firm-specific depending on the bank?"
Will that change your decision? It's what a $25-40 daily perk...Hopefully you have other items above your list of priorities in deciding where to go.
Haha, good point. This wont change my decision, but would considered since I live pretty far away from the office. this is more for my own understanding than a Decision Point
I haven't heard of any bank that doesn't pay for that stuff. Maybe possible but rare. It's not an insignificant perk, my corporate card bill is usually $1500+ even in months where I don't travel.
Noob question about MM IB (Originally Posted: 11/03/2010)
Hey all,
Just recently started seriously thinking about MM IB. Noobish question for you:
Do MM IB firms work with publicly traded companies? Or is that generally only done by bulge brackets? I know the companies are generally under $1B - I just don't know whether that means they're all privately held.
Just trying to understand what it's all about.
Thanks in advance
there's plenty of publicly traded companies under $1B.... and lots of MM firms work with publicly traded companies.
thanks noway
A lot of the business that MM banks handle is private portfolio companies of private equity funds. They work with public companies but not as often. This situation is reversed at BB banks.
Depending on the MM bank, you can get a good deal of exposure to PE firms, which would make for an "easy" exit if you are interested in doing PE in the future and aren't concerned with working at a mega fund.
Regards
Sure, working with public companies happens frequently in one of two ways:
1) Selling a private, MM client to a larger, public firm; or,
2) Divesting a division/company for the larger, public/parent company. This happens frequently between regional MM firms and their local F500 sweethearts. For example, Baxter Healthcare or Abbott Laboratories might tap a MM you've never even heard of in Chicago to divest a $100M division.
Thanks Horatio and Van Buren, very helpful replies. Two more questions come to mind then:
a) Is working for an MM similar to working in a Sponsors group at a BB in that you get a lot of experience with PE(although I assume it's smaller PE shops vs. megafunds) - and therefore better for breaking into MM PE than a typical BB coverage group?
b) Do MMs typically not do debt and equity underwriting? Would I be losing that exposure (as well as general capital structure exposure) by working at a MM instead of a BB?
MMs are starting to look very appealing to me now, but trying to get an accurate picture of what I'm trading off versus a BB, if I'm considering both PE and Corp Dev/Treas as potential future options (pre or post MBA).
a) While you meet with PE firms constantly in the middle-market, it isn't your primary focus, so it isn't comparable to a BB Sponsors group experience. However, nearly every sell-side engagement will involve PE firms. Additionally, you get more face-time with external parties at MMs as an Analyst. For example, I've only been with my firm since July, but I've already visited many PE firms/professionals just for meet & greet/market discussion/networking purposes with my MDs (actually, I set up one meeting for the firm myself). I would still recommend a BB position over a MM position for MM PE exits. Look at the Chicago firms, even though their focus is MM, the majority of Associates came from BBs.
b) MM firms offer capital raising services more often than not, although the bread & butter will be M&A. It will primarily be private capital structuring and raising (for example, a MM company seeking growth capital for their new, high-growth division).
cphbravo, you pre-empted half of my post while I was writing it - props.
MM Investment Banking Analyst Superday (Originally Posted: 01/20/2015)
I have a superday consisting of 4x45 min interviews with a MM investment bank, and was curious if this would differ in anyway from a BB or if there is anything MM that I should focus on when studying for it?
Thanks for your help, it is definitely much appreciated!
Depends on the bank.
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