Sharing info with BD

Based on the most helpful WSO content, here are some guidelines for sharing information with Business Development (BD) and discussing PnL contribution/track record:

Sharing Information with BD:

1. General Approach:

   • Keep the discussion at a high level, avoiding deep specifics that could be sensitive.
   • Focus on conveying your understanding of the deal process, structuring, and the company's industry, competitive strengths/weaknesses, growth vectors, and financials from an investor's perspective.

2. Confidential Information:

   • If the specifics of a deal are confidential, speak in broad numbers. For example, "The company has approximately $500M of revenue and $100M of EBITDA, growing at low double digits, and the buyer was looking to pay 9-11x."
   • Avoid mentioning the company's name or its industry if it is highly confidential.

Answering Questions about PnL Contribution/Track Record:

1. Quantitative Disclosure:

   • It is generally safer to provide a range rather than specific numbers. This helps in maintaining confidentiality while still giving a sense of your performance.
   • For example, you can say, "Our PnL contribution has been in the range of X% to Y% over the past quarters."

2. Qualitative Contribution:

   • Highlight your role in the process, such as idea generation, research, and channel checks.
   • Track the performance of your ideas/work and make a mathematical claim to PnL if possible. This can help in quantifying your contribution without disclosing exact figures.

3. Relationship with Seniors:

   • Mention how well you get along with the CIO and other seniors, and their career paths. This can provide context to your contributions and the overall team dynamics.

4. Startup-Like Environment:

   • If you are at a small shop where the head guy(s) may be funding it and it may not be break-even, compare it to working at a startup. This can help in explaining the challenges and potential of your contributions.

Additional Tips:

• Be Honest but Strategic: Don't highlight or bring up large trading losses unless necessary. If you must discuss them, do so with markets people who are more understanding.
• Avoid BS: If you don't know something, it's better to admit it rather than making up answers. This builds trust and credibility.

By following these guidelines, you can effectively share information with BD and discuss your PnL contribution/track record without disclosing too much sensitive information.

Sources: My Private Equity Recruiting Process, How to Explain Large Trading Loss in Interview, https://www.wallstreetoasis.com/forum/trading/qa-1st-year-bb-london-rates-trader-taking-your-questions?customgpt=1, How to talk around confidential info in deal discussions?, Joined a boutique HF straight out of college, next career steps?