I am an incoming SA at CS (London), and I have read that both groups are very good and I will have to submit my preferences relatively soon. However, I wanted to know about which kind of work is done in each team, as I don't really understand whether there are big differences between both.
What functions does each team have (specially within CS, but would appreciate any help)?
Thanks in advance!!
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FSG is a coverage group. Typically the MDs will have relationships with key senior people at sponsors. It will depend on the bank how much work the juniors in the group do - some bank sponsor groups are pure coverage, and others handle more of the modeling / analysis in house. For the latter, as an example, the group may work with the sponsor and information provided by them to assess the credit and present this information to the bank's credit committee. The levfin group obviously works closely with sponsors on developing this information, and would be responsible for the actual implementation of the credit once approved. The group may be responsible for developing the LBO model and running different scenarios to analyze the credit.
I can't comment on how it works at CS.
Thanks a lot!! Very useful
Sponsors group only cover sponsor clients; this could be in a sell side process, a buy side process, helping them with bolt ons, etc. Levfin is about financing; could be for acquisitions, dividend recaps, refis (usually for sponsor-owned companies). So to put it simply one group is doing M&A for a certain client base whereas the other is financing. Levfin also has internal processes that it needs to go through with its credit committee before a deal goes through, this can be a pain sometimes. You won't really have this problem if you work in sponsors.
Thanks!
Lots of overlap, you’ll be fine no matter which group you end up in. I know that CS is historically strong in both groups, but if your heart is 100% set on the buyside put FSG as your number 1 choice.
I will do that, thanks!
Am not in these groups but will try to explain based on internal organization and understanding at my bank.
Working in IB = Being a broker/intermediary between sources and uses of capital. That's why banks exist.
Sources = Investors
Users = Companies that need capital
LevFin = Is a product group so you work specifically on this kind of debt issuance. High Yield debt raising for companies. High Yield is more risk. More risk because use of funds is riskier, issuer company is not that great, etc. High Yield usually means debt for below investment grade companies and proceed use of LBOs, M&A, debt refinancing and recapitalizations aka riskier uses of cash flow.
FSG = Coverage group so you work across products but same universe of sponsors. You're working on mostly sponsor deals aka your clients have private capital aka private equity aka hedge funds, asset managers, pensions, etc. You work across product type with the goal of meeting client needs. Whether youre capital raising, advising an M&A deal, etc. You are constrained by the client space.
To summarize, LevFin you only work in LevFin aka capital raising. In FSG, you work across different products covering Sponsors.
https://www.wallstreetoasis.com/forums/what-is-the-difference-between-f…
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