Why I Chose a Capitol Hill Internship to Prepare for Future in Finance
Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't really investing if you aren't performing fundamental analysis.Because the subject is so broad, however, it's tough to know where to start. There are an endless number of investment strategies that are very different from each other, yet almost all use the fundamentals.
Read more: Fundamental Analysis: Introduction | Investopedia
I still don't see how anything you wrote about will help get someone into finance, especially PE. Just because you know some Managing Partners on a first name basis, doesn't mean you will ever have a foot in the door to become an investment professional at a PE firm. The guy at Intralinks that sells datarooms to all the PE firms knows everyone in the industry, and so what? A guy at Big 4 that does a lot of due diligence and accounting advisory for PE firms has a ton of contacts, and so what? Doesn't mean any of the guys he knows in PE want to hire him.
I'm glad you're being optimistic, but I don't want others to be fooled here. Sounds like you have an interesting gig, and maybe you'll really excel working in government and policy, but let's not pretend that you've discovered an amazing pathway to get into finance, PE or IB or anything else. Your best bet perhaps is working for finance industry lobbying firms. Some major sized BB banks and Mega-PE funds may have some government relations departments, perhaps your experience is relevant.
When people say "it's not what you know, it's who you know," take that with a grain of salt. You can know everyone in the industry but if you don't know how to model a 3 statement LBO from scratch with 4 different operating case toggles and 3 different cap structure toggles along with flexibility for different exit scenarios, can put that all in a cohesive and comprehensive deck with meaningful and in-depth industry and company overviews, then who you know doesn't matter. Unless you plan on going to a good MBA program and then from there getting into IBD somewhere, I don't see how your experience is relevant. Even then, it sounds like you work mostly with PE firms and not IBs. I'm a VP at a PE firm and I do the associate hiring. My MD/Partner would never ask me to look at a resume for someone straight out of Capitol Hill, but if he did, I would tell him no way and he would totally get it. Maybe at best if he really needed to give someone a favor I could consider a short internship with no chance of full time hire.
Don't mean to shit on your dreams but this is reality.
I definitely did not aim to sell this as an "amazing pathway into finance" and I hope I can reiterate that again. It's a potential entrance into the industry.
I'm sure your firm has its own unique culture, as do they all. The founder of the PE firm I worked with in DC, as mentioned earlier, has a degree in Creative Writing. Does he know how to flawlessly model a 3 statement LBO from scratch with 4 different operating case toggles and 3 different cap structure toggles that have flexibility for different exit scenarios? Of course not. It's economics: that's not his comparative advantage. His specialty is his network, who he was introduced to, his presentation skills/interpersonal communication.
A note to others who read the comments: It's unfortunate, but many of the IB analysts and even those who transition into PE do not all move up through management. Many of them will remain analysts, or transition careers because they have not developed management level skillsets. And out of those who do move up through the ranks, a large percentage of them do not possess quality leadership traits. Surely you can understand this yourself at the VP level. Interpersonal communication skills, being personable, almost combined with a sales finesse, is what elevates people through the ranks. If people moved up based purely on their skills, we would have a much different industry run by very different people. So even by knowing how to model 3 statement LBOs from scratch, how many will possess the drive to rise through the ranks and/or run their own firm one day? Maybe 1-2% of them. This, is the reality.
You also state you don't see how my experience is relevant. While you may not hire someone with my blend of experience, you're not the only guy hiring out there either.
It's important to note that I'm still a junior, with another round of a summer internship to go. My applications are out at a handful of hedge funds, PE firms, and Financial Regulatory Agencies. My specialty is I can quickly contribute to projects, assume effective leadership when needed, etc. In other words, scalability. As an aside, I'd like to let you know that your DC PE competitors do prefer a well-rounded resume. I'm not saying from a guy who's only worked on Capitol Hill forever, but for someone who has diversified experience in finance, with some policy-side work, or something else. It's already an industry known that a lot of firms end up hiring bland/dry personality guys and gals who you would never want to put in front of a prospective client or to deliver the investor pitch deck.
Still standing by my original point that this article is meant as an alternative for those looking to get their foot in the door into either an internship or entry level position. It is by no means a guaranteed way. It's a route that you can use to think outside of the box to develop your specialty and break into the industry.
Frankly, it's pretty retarded to put this out there with no anonymity. Googling your first name + school yields this on the first page of results. Is this really what you want someone doing a quick background search on you to find?
I don't doubt that your role is helpful, but I think it's a bit much to write an essay supporting your decision without an offer in hand. Maybe you fucked yourself over and won't be able to enter finance, maybe you will, but you don't know yet. I'd scrub your name from this and repost something similar once you've actually used this "edge" to move to finance.
I was certain this was a troll until you made this post.
I know tons of people who have broken into finance from government. But none of them thought they would have been qualified because they interned for a senator. Chances are the senator barely knows your name. The people who go into finance from government that I know are former heads of divisions like the fcc, sec, etc. they have been there for 20+ years. A firm is not going to hire you and your connections because you interned for a senator. I have multiple fraternity brothers who are working on the hill. They are the lowest of the low. No pe firm is poaching them.
Definitely agree with your point that those who stay on capitol hill are the lowest of the low. Hell, the Senate Janitorial Staff earns more than Administrative/Legislative Staff. At the end of the day, the point I'm trying to convey is you have to use the time wisely on the hill. Rather than research social issues, I'm focusing my time working with the Economic Advisor (which ends up helping my equity and forex trading since I have to spend a good portion of the morning reading all the news). Some of the other guys who worked in the same senate building as me transitioned off to PE after working with other Economic Advisors. Why stick around and take the low pay when you can find better pay elsewhere? But like I said, my recommendation is to use the time wisely and not run errands all day.
glorify capitol hill internships all you want but it is far from the best way into finance.
And I clearly did not say it's the best way into finance haha. It's an alternative route for those who need to make the most of capitol hill. Like I mentioned in another comment; why would I spend my time researching the social issue projects when I can work with the economic advisor on investment tax credits that affect the industry? Plus, gives me much more time to research equities and forex markets (I trade in my down time).
So do you have a finance offer or nah?
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