Most Technical Groups Ranked
I was wondering on average where people would rank different product and coverage groups based on difficulty/technicality?
I know RX is probably number 1, and then maybe special situations M&A, then regular M&A product groups. But where do you guys think certain coverage groups (tech, healthcare, FIG, and infrastructure would likely be in the higher end, with others lower on the ladder) land in that stack? What about niche product groups like an esoteric product origination group?
What about capital markets groups?
I know a lot of this is firm dependent and there are a lot of other factors. But intersted to see if people actually would put that much more weight on somone who’s an analyst at a M&A group vs someone who’s an analyst in a transportation coverage group (no diss on transportation, just using it as example as I think the precedent is that it is generally less technical) at the same bank.
Probably Infra, FIG, Natres, Oil & Gas, Telecoms are the most technical. The reasons range from generally long granular models, or very niche specific modelling.
Other sector coverage like TMT, Industrials, healthcare, C&R would fall afterwards.
But technicality does not equal how difficult the job will be
It is Infra. Rx is not that technical. The drivers are the lawyer
I was intersted in RX for a bit and recruting for it is definitely is harder than everything else.
But I’ve been increasingly hearing comments like the one you made in regards to how the heavy work is really driven by lawyers and consultants. Wish I was able to hear thoughts on this from more RX bankers, I know there was that one mega thread a while ago but still.
I don’t think it’s unreasonable to say biotech is more technical than any product group (barring rx) if you consider the breadth of actual diligence
Yeah definitely valid. I think this was also the one group where I saw the most STEM majors as well.
Yeah, but from a finance/modeling perspective, it's pretty straight forward
In what way is it straightforward
Infra/Project Finance
RX
M&A
In that order, layer in PF Tax Equity if you want to be confused your entire analyst stint
Del
Oil and Gas and not even close. There is literally a technical group within O&G investment banking that only churns out type curves, hedge book, and mapping
I know a lot of people said infra. Infra is hard because it is highly granular and incorporates a lot of project economics, which makes it complex
Also, I have seen a lot of O&G bankers going to infra fund, but I never seen P&U bankers exiting to a O&G PE
Isn’t the last piece a causality mistake? I’d rather underwrite that P&U lads are shoveling gold across most geos these days… no need/point to move into a vertical with supply for next ~20-40 years, massive political headwinds, as well as ESG & governance issues which is already restricting the world’s largest LPs to invest directly… causality my friend, H0 and H1
yeah lol, nobody is trying to go into O&G PE.
Across Power, Utilities, Infra, Energy - what sectors should I focus on to get exits into buy-side infra funds?
Equity linked capital markets - convertibles
Project & structured finance can get pretty technical
biotech
"my group"
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