Rainmaker Analyst - My Story

1. It would be looked on poorly. The firm would not view itself as a fly by night institution that wins business that way.

2. No. You have no skills that would recommend you to be staffed in that way.

3. No impact. Focus on building your skills. Assisting in business development in a skills based way - ie developing deep insight into a specific industry segment that helps create a unique angle in pitches would definitely be noticed and get you paid more

Real rainmaking is competence based, built over years of closely developing relationships and is highly structured. Random relationships are not encouraged. Moreover, any BB would have relationships with virtually every client they want to cover.

also, finders fees are highly discouraged for compliance reasons and would have to be disclosed to all parties involved. 

I admire your entrepreneurial spirit but it’s just not how any respectable bank is wired, and if you brought it up, would create a pretty negative impression. 
 

I had an analyst once through who was super connected and always trying to use them - I thought she was a great kid and always supported her while reminding her to focus on fundamentals. But it rubbed a lot of the others the wrong way. 

Maybe try starting your own boutique in a few years? No point doing the corporate grind for decades to monetize on an opportunity you have now. 

You should do a search on here - there are a ton of threads about bringing in deals. Often "my uncle runs a $Xm EBITDA business and is looking to sell, should I source it to my bank?". The answer is almost always no, not worth it to the junior.

That said, this specific situation is an absolute no. This is not how banking works, F500s don't just switch M&A advisors because their kid's friend's friend is a first year there... come on now. Also, your MDs are paid millions to have connections in your industry. Of course they know the CEO/CFO there. And they are not going to win business because you have third or fourth degree connections to another 24 year old.

Not trying to be harsh but you are being unrealistic at best and using your friend at worst

I think there's some naivety on your part to be thinking this way. You started your stint in July in a troubled market, unsure how many deals you've been a part of from start to finish that have closed so far. And deals aren't cemented just because you know a guy who plays golf with a guy who might be the son of a guy your bank does business with. Granted this is a very relationship-heavy industry, name value of MDs who have developed that repute over decades is what a lot of clients are attracted to - not just the "ability" to be connected closely. Also if you look at it from an upward mobility POV, the first few years are a lot about paying your dues and being excellent at the fundamentals. Just because you bring in dealflow won't mean you make VP in 2 years, and if somehow you do, your ASO / ANLs who will be grinding day and night will resent you for it and my guess is won't be the most helpful junior resources for you. 

I'm not trying to beat you down or dissuade you by saying that your post had shades of immaturity because that is to be expected so early on in your career. I would say, I have friends who have thoughts like you and they post on WSO and everyone tells them it's a bad idea, yet they still somehow push it into conversation with some ASO or VP and make themselves look bad. Don't do that. Use your friend. Now that you have this extra money coming in from your job, fly out to these golf courses or events and meet these people. Be likable and trade knowledge, just for the sake of learning from one another. IF you genuinely enjoy being an analyst, stick it out, go A2A, do like a year or 2 as an ASO and then lateral to a different shop, pitch your "network and potential pipeline" that you would have developed sufficiently by that point and if you do it perfectly you might be taken on as a VP. I see this as the fastest way to the top but again, you might rub a lot of people the wrong way if you start acting like the hotshot without having anything to back it. Even MDs who cultivate client relationships for decades and are invited to bakeoffs, with management all but confirming it is just a formality lose mandates. 

What the fuck? There's nothing worse and more off-putting than a social climber. Someone who views their friends as assets 🤢

I hope you're found out by your friend, oh my goodness.

Head of corp dev / CEO's at large companies do not switch M&A advisors based on who their kids know. Buying and selling a business is not like selecting which restaurant to get take-out from on a Friday night and the switching costs of going from your regular advisor to another advisor is extremely high should things go wrong.

It sounds like you're focusing on the wrong stuff - stuff that sounds rather implausible.

Additionally, try not to put friends in situations that would not be beneficial for them. Perhaps ask yourself: why would a F500 that has historically been aligned with one advisor, perhaps for decades, suddenly pivot their strategic direction out of the blue and go with a different bank for M&A processes?

Would your friend go out of their way to move mountains just for a finders fee?

You’ve got the right attitude kid and you’re thinking about the right things.

With that said, no one is going to trust bank X to lead their sell side process because of a connection to a 1st year analyst.

Just hit the desk, work your ass off, learn the fundamentals and do what you have to do to climb the ladder.

Keep developing your network and look to take advantage of it when your time comes to generate revenue for the firm.

One of the most hilarious and cringe posts I’ve read on a while - thank you

I've heard some ideas that sound possible, but this one is a bit far-fetched... it sounds like there are too many degrees of separation between yourself and whichever potential clients you want to bring in, and also between your own role and the role you want to step up to. But like people mentioned, if you build the right skill sets and your own relationships, then over time you'd likely be able to leverage more of these connections to bring in deals.

Also try Growth or Venture roles if you want to source early on.

I know a guy that worked at a boutique, same mind set. He has been at the firm for 4.5 years and started as analyst out of college. He closed one deal last year and 3 deals this year as an “MD” he’s in his mid twenties.

His dad owns a PE firm and the CEO of this bank is basically retired so he has an opportunity to run the firm. You can do the same thing at a no name if you’re really good. No BB or EB operates like that where you can bring in deals and get comp for it.

I like the ambition, but it just sounds a bit ingenuine - are you actually friends or do you just want to add people to your circle to gain access to other people? If the latter, there are networking events to add connections to your own rolodex and meet with business owners who are genuinely interested in finding a bank to sell their business.
That said, I do think you have a good entrepreneurial attitude, so keep at it mate. Most people want to reach success earlier in their careers rather than later.

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Socially, this is a huge red flag imo.

You’re dick riding your friend. Are you really as close as you say you are? Who uses their friends solely for their connections? They aren’t even YOUR connections…

If I was in their position and saw this post, I’d cut you off straight away. Huge red flag if a guy plans to use my relationships to their advantage without me suggesting it.

If you two really are brothers and they are as willing as you, fair enough. Just please think before acting.

Don’t want to pile on but this is just so funny to me…

I’m picturing Steve Schwarzman out golfing and some acquaintance is like “oh you should meet my sons friend, he’s an analyst at Barclays and can handle all your M&A needs”

Then Schwarzman is like “oh I’ve never considered working with Barclays and have no connections there, i have a few portcos I’m looking to sell, please give me this kids info!”

Like does this actually seem at all likely to you? Like maybe if your dad is the CEO and you’re a BB analyst maybe you can tip the scales of the bake-off all else equal, but anything else related to “using your network to win a mandate” is just insane to me

I'm a similar boat but more specific… My firm mentioned that they plan on covering a sponsor where a close family relative is an executive at.

Should I mention this and say I can set up an introduction or something?

So it looks we generally agree that this idea is insignificant / has no merit. Too many stars would have to align for this to make sense: too many distant connections to bridge, unlikely business would switch advisors, no prior experience in deal making for either OP or friend etc. Just sounds like wishful thinking

I just want to point out to you that these connections are dime a dozen. Most of the time, these well connected friends of your friend won't even talk to you. Referencing girls mentioned in this chat - they will talk to a pretty girl whom they'd even give their namecard to just to impress, but it won't lead to any business relationships.

You have to prove yourself in some other way first. That, or you marry one of them.

Take it from somebody who went to school with very wealthy people and has been hit on numerous times by very wealthy people. They're used to men desperately trying to get their business. They're used to flaunting their business connections to get women, especially young women, to meet them again.

Willing to be big money that this genius business idea was contrived whilst both the OP and the friend were baked out of their minds.

I'd also be willing to bet that there was talk of setting up "conglomerates and shit" because "his dad is in pharma, his dad is in auto manufacturing, imagine the cost synergies if our boutique investment banking advisory management consulting firm ran the process to merge them and they could install their first aid kid direct on all their cars!!!!" 

Disagree with commenters above, commenters over emphasize value of IB MDs as if they were some sort of God. IB MDs are a dime a dozen and being on the buyside, I have been very unimpressed with many IB MDs when speaking to them in processes (spray and pray approach). They struggle to get dealflow and the attention of clients and are at clients beck and call. Probably analysts glorifying their boss.

I’m in PE and definitely if you have any ability to get dealflow then it is super valuable and is how you ultimately get promoted at higher levels. 

With that said, just knowing people will not catalyze a deal but can help a bit. Unless its a purely private business with no real advisors (family owned type businesses), then they usually run RFP type processes before major decisions (who to partner with/engage etc.).

Ultimately, even if you could catalyze deals and get your bank a bunch of them, given you are paid peanuts it is not worth it. You will have to put extra work and put these connections at risk just for a corporate institution that doesn’t care about you. Think about yourself, not the bank. Do the minimum amount of work necessary to keep the paycheck coming and use that energy and connections to start your own thing on the side.

This is why nobody likes non-target kids

Try to cultivate those relationships, but why would a sizeable company or fund abandon their existing banking relationship(s) to give your firm business, let alone rely on you as the go-between to facilitate the introduction?

If I'm tracking the scenario correctly, you're saying an F500 would contemplate making that change because the founder's kid golfs with a "not very smart" unemployed kid who has a buddy (you) that's a fresh grad analyst. If these potential clients are as desirable as you say, they've had no shortage of actual rainmakers (i.e. MDs / group heads) wining and dining them for decades probably

But even if you could make it work, your MDs' egos are 100% too inflated to compensate you in any way... although I actually could see an arrangement like this working if you were at like a regional middle market shop and you had ties to decisionmakers at some random industrial shops with no existing IB relationships. Maybe look into some kind of business development / sourcing role that some BBs have if you'd really want to do this type of stuff from day one

If you want to leverage relationships and actually get paid for it early in your career, go into Private wealth/banking.

Most of these posts are wildly inaccurate. Not surprising, banking is filled with absolute simps.  

You absolutely can, I used to do it at Goldman with Gregg Lemkau. Just make sure it's a legitimate connection.  Fuck the haters OP.  Also I would add it's easier at a top tier institution where people are elite and don't have the insecurity most of these posters have.  Best of luck. 

Know a guy at a boutique who is fairly entrepreneurial and created a pipeline of opportunities from relatively early on at the senior associate level. Build some more knowledge and expertise first and you’ll be in better shape to bring in business

Bottom line is that IB/Sales MDs are cagey as FUCK about who "owns" relationships and there is no way in hell they're going to let an Analyst "own" a monetizable account. Best case scenario, the MD let's you call out to your friend and then simply steals the relationship and "owns" that account from here on out. Worst case scenario he tells you you're an idiot then proceeds to cold call the account himself. In either event, your MD will see the account as his not yours and may react with varying degrees of spite if he feels like you're stepping on his toes. 

Their parents probably know how to monetize the relationship themselves and have been doing that for quite a long time. There is not much room you can extract juice from there. 

This only can work if you facilitate an intro that makes business sense and I would argue you need a frothier market for it to really make sense (so likely you need to work at a middle market bank). In that case, you won’t get paid for it, but you likely will get serious props from an MD/ the firm and will be thought of highly. In practice how I have seen this play out:

Analyst’s connection is looking for a banker for their company for the first sale—they send an email to the MD and explain the situation. The MD says, “would be glad to chat with them, let’s set up a call”. Analyst connects both via email and sets up an intro meeting. From there, if it’s a legit deal the analyst might not even get staffed on the project, but the MD will owe the analyst and vouch for them very strongly come bonus time. Assuming you don’t screw up, you likely are going to get a top bucket bonus, but there won’t be any acknowledgement/ extra fee paid for you sourcing the deal. I actually would argue this is more common than people realize because as other posters have mentioned, the world is small and often analysts that come from good schools and get good grades come from wealthy families and have wealthy friends. 

Most people give you the bank’s perspective, let me give you the buyside (founder’s perspective). Unless your bank have some substantial benefit you can bring to the fund, they probably already have other relationships they have worked on for years. Resonate with previous post said - if it’s nascent and have a lot of white space this may work, otherwise unlikely to. You have to benefit the fund in some way for them to pick your bank. These guys are very smart and have their own incentive.

Disclaimer: work at a one of the MFs…though my title say intern

Shut up

is this thread for real.  A member of a bank has connections to various high profile clients and may be able to facilitate a proper introduction and people are telling OP to keep his mouth shut.

1. not every bank has good connections to every potential client.  The MDs might THINK they are connected, but you'd be surprised how crappy a lot of MD roledexes are (some are just super basicl emails addresses that get passed around over the years).  I'm at a BB and one time the client asked us if we could reach out to Berkshire Hathaway about a deal.  Our MD was like "yeah absolutely, we will reach out".  Right after the call he sends out an email to the deal team "team, who is our best POC at BH?" (we didn't have one btw lol).

2. If you can facililate a proper intro between your MD and client you are strongly connected to, they will absolutely be glad to take it from there.  You will not be leading the relationship, unless you prove yourself over time to be a superstar (ive seen it honestly).   Just a simple "Hey Chet, enjoyed the golf round last week, as discussed I have CC'ed our sector head who can discuss any financing options with you directly if needed.  Please feel free to directly email him."  Before you send the email give the MD a heads up that you met a CEO/head of corp dev at "X" client who wants to discuss options with our firm.

3. If you MDs are butthurt enough to be opposed to this, you don't want to work there.

You’re probably better off getting some experience in and trying to start a fund with his connections in a decade or so.

I think the comments really tell how conservative and banal this industry has become. IMO, if you get to generate revenue Day 1, you should be treated like you are capable of doing that. How you do that is irrelevant as long as it’s not illegal. Don’t tell me banks don’t love hiring people with good connections because that’s how banks survive. But rest assured, most people on wso will tell you somehow you are a shitty employee and it’s dead wrong to think about your job this way. While it’s important to navigate through institutional politics, it’s also important to know what the real contributions are.  

The problem is this guy doesn’t have the relationship. He has a relationship with some dude who has a relationship with the kid of some other person. Literally three degrees apart. Plus the finders fee bit. That’s tenuous af. 
 

Of course, if someone actually had a genuine and value added relationship, they can and should benefit from it in the right way. But this is very different. 
 

average WSO user: "I love modeling. Its so important and sexy. 

"Don't try and hustle and win clients, it will make people upset"

great advice on this site everyone

Hey everyone, check out the hot salami on this guy! OHHHHH BOY SO MUCH FLAVOR

This is cringeworthy. The answer is no this isn’t going to work and if you attempt to do this it will be embarrassing. It has nothing to do with being risk averse or conservative in investment banking or not “hustling to get clients.” It’s two things - 1. These are non-existent relationships at this point (and how many kids in investment banking went to boarding school, Ivies and are rich and generally well connected in a much more direct way than this? a ton.) 2. Even if they were existent, this not how relationships are leveraged or monetized.

Thinking about ways to circumvent the grind and make money as easily as possible with what you’ve got is awesome, but this ain’t it. Anybody in this thread implying you are being a risk averse or not hustling by not doing this are naive. If you’re going to do this you might as well just come in tomorrow rocking suspenders and get it over with.

There appears to be some misapprehension here with OP sounding naive about how deal sourcing works, but understandable given s/he has no experience in the field - knowing people is often not enough to bring in a deal.

As some have noted, 3rd or 4th connections in particular are too distant and mean nothing from a relationship standpoint. It is more crucial to first learn the job and build expertise, build your own relationships first before leveraging those of others.

However, do try to set goals to generate ideas to bring in business for your team. That is the right attitude in nearly any field relevant to transactions or sales. Consider joining a merchant bank, it is more encouraged on those platforms to source deals.

“I’m sure this unheard of” said… the “connected” trust fund kid… going into… banking?

Should turn the title into a movie