LevFin corporate finance vs LevFin capital markets
I'm currently an ECM banker interested in making a change and switching to the world of LevFIn.
1) I just got promoted in august to associate. Is it possible for a 1st year associate in ECM to move in as a 1st-year LevFin associate? or would I have to take a jump down back to analyst level? I understand LevFin is the most technical team there is in IB so I'm unsure if they would take an ECM banker?
2) I've seen a lot of posts going on about certain investment banks structure their lev fin teams as a capital markets team vs others that structure it more as a traditional IBD team/corporate finance/advisory team? Could someone explain to me what the differences would be i.e. what the responsibilities would be in a LevFin team that's structured as a capital markets team vs one that is structured as a corporate finance/advisory team? From what I've seen it appears places like GS and JPM are structured as a capital markets team whereas others like BAML and CS are more of a corporate finance/advisory team?
Thank you
Regarding your 1) I doubt they will take you as associate unless you have modeling experience or a significant experience with leveraged loans or high yield bonds from a pure capital markets side.
Regarding your 2) your understanding is only partially true. Some banks have both teams inside the LevFin team while some others have these in different part of the organisation. The two teams ALWAYS exist, regardless where they sit. The capital markets team serves basically as a syndicate function, while the more traditional LevFin team (the one with more obvious exit opportunities) serves as an origination/coverage.
Regarding your 1) I doubt they will take you as associate unless you have modeling experience or a significant experience with leveraged loans or high yield bonds from a pure capital markets side.
Regarding your 2) your understanding is only partially true. Some banks have both teams inside the LevFin team while some others have these in different part of the organisation. The two teams ALWAYS exist, regardless where they sit. The capital markets team serves basically as a syndicate function, while the more traditional LevFin team (the one with more obvious exit opportunities) serves as an origination/coverage.
Thank you for the reply, very helpful.
1) unfortunately I’ve got no experience in the world of debt instruments or LBOs, I do however have experience in operating models and DCFs. Would this be enough?
2) So if separate would the lev fin capital markets team be putting together things like finding the bond comps / doing the pricing and structuring of the debt? Whilst the origination/coverage team would be responsible for drafting things like term sheets / credit memos etc?
In reality the teams work closely together as the origination team needs the input of the capital markets guys. Technically most of the stuff related to pricing/distribution should be led by the capital markets team (i.e. anything that requires a Bloomberg terminal). The origination team however is the one that does the heavy work, and the team sizes are very very different. Regarding the other point I don't know honestly, your best bet is internally.
In reality the teams work closely together as the origination team needs the input of the capital markets guys. Technically most of the stuff related to pricing/distribution should be led by the capital markets team (i.e. anything that requires a Bloomberg terminal). The origination team however is the one that does the heavy work, and the team sizes are very very different. Regarding the other point I don't know honestly, your best bet is internally.
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