PE exit opps from Lev Fin

Hi cgustav,

I have a similar question based on Financial Sponsors groups. Can anyone comment on FS vs. LF into PE?

On the Lev Fin bank brands, I've been told that JPM has really been building up its desk, while BAML has been falling behind. Any thoughts?

Thanks

-TRM

You're being much too broad here, it is an oversimplification to say "LevFin is the best group for PE opportunities".

LevFin is one of the strongest placing groups at JPM and BAML, though even at these two I would shy away from saying it is "the best" placing group at each. At GS, the premiere industry groups (TMT, FIG, CRG, Healthcare) generally place better.

Placement in Sponsors groups, just like in LevFin, varies by firm. As one might imagine, the lending banks that hold more sponsor relationships also tend to be the ones with stronger Sponsors groups. At BAML, for instance, Sponsors places quite well - whether it's "better" than LevFin at BAML depends on the class.

if you're talking about JPM or BAML, you're better off being in the sponsors group if PE is your ultimate goal. Lev fin at big bulges tend to serve as the "product solutions expert" when it comes to LBOs or div recaps. Much of the strategic part / modeling goes through the sponsors group first. Not saying that you won't model at all in lev fin or that you HAVE to model a lot at work to go to PE, but spending a lot of your time in those areas does help a lot when it comes time for recruiting and the technical nature of the LBO process becomes second nature to you. Just my 2 cents.

^can confirm above, especially LevFin at JPM. The model is done by sponsors and exit opps out of JPM LevFin is not as good, esp relative to its other groups. Analysts tend to stay for A2A, or else move to diff divisions within the firm (ex. Corporate Banking if they want better hours) but not much in PE exit opps.

any comments on UBS FSLF?

I am trying to decide between BAML and JPM. Any insights about culture?