FSG Group (US banks)

Based on the most helpful WSO content, the Financial Sponsors Group (FSG) at U.S. banks typically involves a mix of work, including M&A, debt financing, and sometimes equity financing. The work can vary significantly from bank to bank and even within different FSG teams at the same bank. However, the context provided doesn't specifically mention London, but I can share insights that are generally applicable and might be relevant for FSG roles in major financial centers, including London.

1. Nature of Work: FSG teams often work closely with private equity firms and hedge funds, providing them with various financial services. This includes advising on mergers and acquisitions (M&A), helping with debt and equity financing, and sometimes assisting with initial public offerings (IPOs). The balance between M&A, debt, and other types of work can depend on the bank's strategy and the specific focus of the FSG team.

2. Commonly Used Models: In FSG roles, you're likely to encounter Leveraged Buyout (LBO) models quite frequently, given the close relationship with private equity firms. Additionally, you might work with financial models related to debt financing structures and occasionally with models for equity offerings. The emphasis on modeling can vary, with some roles being more relationship-focused and others more technical.

3. Exit Opportunities: FSG is known for offering solid exit opportunities into private equity (PE) and, to a lesser extent, hedge funds (HF). This is due to the close work with PE firms, which allows analysts and associates to build networks and understand the PE investment process deeply. The specific exit opportunities can depend on the bank's reputation, the deals you've worked on, and your personal networking efforts.

For someone interested in FSG roles in London, it's important to research specific banks' FSG teams in the city, as the focus and culture can vary. Networking with current or former FSG professionals in London can provide more tailored insights into the work, the models used, and the exit opportunities specific to the London market.

Sources: Life In The Financial Sponsors Group, Barclays Financial Sponsors Group, JP Morgan Exit Opps to Private Equity?, What groups at Barclays do in-house M&A?, CS/Citi M&A/FSG vs. lower GS group