Job responsibilities, how close are they?
Hey folks. I'm wondering if an investment banker could shed some lights on this. I want to know how close the day-to-day job responsibilities in project finance similiar to those in investment banking (i.e. M&A, Coverage, blahblahblah)
I do a lot of energy deals - either direct loan to the energy company or to a sponsor of an energy fund. In the transaction, I do the following:
-Analyzing the sponor's financial model and assumptions as well as building my own. -Run sensitivities and do stress test on the model -Write the credit paper & term sheet to get approval from the internal credit and investment committees -Negotiate the lending terms and structure the deal with the borrower(s) and other related parties. -On site due dilligence and endless documentation.
Are you guys actually the lead arranger or agent on many of the deals? or do you just participate?
and by "you guys," I mean you personally. How many times have you done the modeling for your firm, when they were awarded lead?
We're actually the lead arranger most of the times. We don't syndicate that much because we have tons of capital supported by the U.S. government. We have tons of experience in lending to risky emerging markets. When most of the lenders don't lend to international borrowers, they come to us.
For models, the sponors or borrowers always provide us their models for analysis. On my own, I have to modify their models to do stress tests, sensitivity analysis, etc. I also need to build, on my own, models for IRR, DCF, etc. In certain deals related to public companies, I have to do comparable company analysis, multiple analysis, etc.
What do you think?
The latter is pretty close. Former is bleh.
Would be easiest for you to move to a credit-based group in IBD, if thats what you are looking to do. DCM or lev fin are closest, particularly if you are dealing with leveraged/risky names.
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