Rainmaker Analyst - My Story
The Background:
Graduating from semi target in spring, starting my AN1 stint in July. I'm really close with buddy whose parents are senior White House officials (think inner circle to Biden). Really wealthy before joining White House and this person has had lot of exposure to high society (went to HS at Le rosey, Exeter, Andover type). They are not in banking and effectively have no job. They aren't very smart. However, their rolodex is immense: golfing constantly with the kids of the founders of 3 mega funds, Hamptons with the kids of founders of a dozen fortune 500 companies across a dozen verticals. They have connections.
The opportunity
With their connections, my thought was "hey, there's a chance for us all to get paid". We get paid on the deal my friend gets a finders fee of some kind. They make the intro of these funds/companies to me, I bring in the connection to the bank, we win the business, everyone gets paid. If these companies aren't already with our bank (I'm at a BB), it would be possible for them to switch. I'm just guessing here I'm not sure the logistics. I know these MDs at my bank can't have all of these companies/connections locked down, and effectively I could be a super star to bring in these clients. Granted the MD for the respective vertical would be leading the deal but I'm essentially passing the ball to him on a breakaway. I'm sure this is unheard of, but this is my situation.
My questions (looking for associate views/up)
1) if an analyst came to you saying hey I'm tight with xyz huge name company and their kids I think I can bring them in, how would this be looked at?
2) If I were to bring in these deals to teams that I do not work on, could I get staffed on this deal (even if in another group)/get paid for bringing it in?
3) How much upward mobility would this give me in the bank? i.e. - perhaps faster promote to associate/VP?
Any input would be appreciated into how I can turn this situation into fuel for growth within my bank. Thank you!
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.
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.
This reminds me of someone from my summer analyst class. We admired how driven and opportunistic she was with regards to becoming a rainmaker from day 1. However, we realized that she really wanted to become VP/MD before she understood the basic job functions of an intern, an analyst etc., and saw herself as better than the rest of the class, which was off-putting.
On top of that, all summer long, all of us from interns up to MD had to put up with listening to her frequent revenue generation ideas, like using her friends and connections to create potential deals that were not realistically achievable. Meanwhile, the others in our class had to pick up after the work that full-time analysts and associates did not want her to do. Surprisingly, she managed to receive the return offer after all this, but luckily moved to a different group.
It would be pretty funny if this summer analyst is the same one from the second comment on this thread.
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.
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.
Don’t listen to these guys about “staying on the ladder.” WSO is highly risk adverse and gets jealous when people who aren’t make money (just look at how much they bash VC/startup culture on this site). It makes sense to grind your analyst years and learn the fundamentals, but I believe you should go start a boutique after a few years to make real money or join a smaller boutique where you’ll get most of the fees. Don’t let your connections and network be eaten up by shareholders who could care the less.
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.
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.
Going to keep it real here, nothing special. I went to an ivy and in my frat PC alone (total of 20 guys, total frat of 85 guys), there were 7 guys with whose families were in the 500mm - 1 bn net worth range, 3 more whose parents were CEO/COO/CFO in F50s, and 2 with billionaire company founder parents. This was my PC and there were plenty more in the whole frat and keep in mind, these are my friends like guys I am actually close to not a third-degree connection. One of my best friends outside the frat is in a major 10bn+ family in a European country (he is cousins with the main branch but is still a billionaire in his own right). I went to a private school in NYC on fin aid and there were plenty more of these types of kids there who once again, I am boys with/girls who I am close with who are my direct connections. If you went to any elite institution, you have these connections. The fact that you have one is nothing special and that to, a non-direct link.
Agreed. Am in a similar position and laughed while reading this post. Plenty of analysts have numerous connections to F500 c-suite. Not sure why OP thinks his situation is particularly special.
I do not think there is anything wild with OPs thinking. Just that he/she may not realize that folks having those direct links is fairly common especially if you went to an Ivy/any sort of archaic institution where old money is floated around.
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
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
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.
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.
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.