Sovereign Advisory Resource

I have received several questions in DM about Sovereign Advisory. So I thought it would be great to share a complete post which I hope will be beneficial to people interested in SA.

First thing to know is the most prominent teams are based in Paris: Lazard, Rothschild and Global Sovereign Advisory (founded by Anne-Laure Kiechel, ex-Rothschild's head of SA). Rothschild may be weak in the US but it is leading league tables in France and Europe.

Recruitment is super competitive, I would say even more than in M&A teams. Most profiles have a double-degree (engineer x business school or economics x business school/Sciences Po), that said it is not impossible to break in with only a business school degreee (i.e. HEC) or coming from Sciences Po.

On first round you'll have a test focusing on macroeconomics, debt capital markets, bonds, public debt dynamics, knowledge about rating agencies and how they work. If you pass the test stage, then you have a 2nd round during which you will meet the members of the team, interviews will mix fit and technical, same kind of questions you had during the test, mini-cases with fictive countries, infrastructure financing etc. 3rd and final round is when you meet the MDs, generally less technical and more fit oriented but be sure to master your technical, some will lead that interview as if it was the first round, be ready.

Main notions to know: Balance of Payments, Deficits, key ratios, interest rates, how central banks work, Financial Statements, rating agencies, IMF and World Bank roles and functioning, how to restructure a debt, different types of lenders, what is a default, fixed income, etc.

In terms of work, it is super interesting. You work with Governments on debt restructuring, debt issuance, helping countries with competitivity, rating, Infrastructure financing, state-owned companies and even working in M&A deals if a Government is involved. Work hours are still brutal, so your motivation to join should not be seeking a better WLB. You will develop great skills in modelling, knowledge in many subjects not only finance, but also economics, politics, and have a great culture. Interlocutors are the highest level you can think of: Presidents, Ministers or Treasury Directors, and working with them on highly important subjects for their country is highly satisfying.

Teams are based in France but cover the whole World with mandates in LatAm, Africa, Europe, Middle-East and Asia. So you will be able to dive deep in several geographies. There are also regular travel opportunities, even though less frequent since the pandemic.

Salary: base salary is the same as for M&A teams, bonus I would say is generally slightly inferior than M&A of a negligible amount.

Hope it helps