Multi vs Single Staffing

Based on the most helpful WSO content, here's a detailed breakdown of the dynamics of different IB roles and staffing models:

Dynamics of Different IB Roles:

1. Leveraged Finance (LevFin):

   • Modeling: Some LevFin groups do not engage in detailed modeling (e.g., GS, MS, JPM, Citi, Barclays), while others do (e.g., BAML, CS, DB, UBS).
   • Work Focus: Building cap tables, spreading debt comps, updating market slides, covenant comps, commitment paper negotiations, and funds flows.
   • Hours: Generally better hours compared to coverage groups due to less intensive modeling.

2. Restructuring (RX):

   • Modeling Types: Entity priority models, debt waterfalls, 13-week cash flow, recap/refi models.
   • Skills Required: Ability to execute quickly, understand various business aspects (financial, strategic/operational, legal), and learn rapidly on the job.
   • Background Flexibility: RX groups may consider candidates from various backgrounds, including real estate credit, but having LevFin/DCM/O&G experience can be advantageous.

3. Coverage Groups:

   • Work Focus: Often involves building the operating model (revenue/expense assumptions) and working closely with LevFin for debt repayment models.
   • Exit Opportunities: Typically within the same vertical as the coverage group or debt-oriented groups (DCM, LevFin).

Staffing Models:

1. Single Staffing:

   • Pros:
     • Deep involvement in a single deal.
     • Ownership of the model and materials.
     • Comprehensive understanding of the deal dynamics.
   • Cons:
     • Limited exposure to a variety of deals.
     • Potentially less experience in handling multiple projects simultaneously.

2. Multi-Staffing:

   • Pros:
     • Exposure to multiple deals at once.
     • Broader experience across different projects.
     • Potentially faster learning curve due to varied experiences.
   • Cons:
     • Higher workload and stress.
     • Difficulty in keeping track of all deal details.
     • Potential for burnout due to juggling multiple responsibilities.

Factors Influencing Staffing at Bigger Banks:

• Reputation as an Analyst: Analysts with a strong reputation may be more likely to be multi-staffed due to their proven ability to handle multiple projects efficiently.
• Team Dynamics: The specific needs and dynamics of the team or desk can also influence staffing decisions.

Conclusion:

The best staffing model depends on individual preferences and career goals. Single staffing allows for deep involvement and ownership, while multi-staffing offers broader exposure and varied experiences. Balancing these factors with personal work style and long-term career aspirations is key.

Hope this helps!

Sources: Lev Fin Outlook & Best Groups 2020, Thoughts on Restructuring Groups?, Can we start a thread on the pros and cons of different coverage groups from a work / career perspective?, Why You Should Consider Restructuring – Common Misconceptions/Insight on RX Groups, Performing / Opportunistic Credit fund vs. LevFin at an IB?