Stand Out as a Non-Target: The Interview (Part 2 of 4)
In Part 1 we discussed some tips on networking and recruiting for a Non-Target.
In this piece we are going to do a quick walkthrough on how to stand out assuming you have landed the interview.
The Setup: The first thing you need to know before you walk in the door is the type of personalities that are generally on Wall Street. In two words, Risk Averse. What this means is that in general, a Wall Street firm will choose the least risky candidate time and time again not all is lost as you’ll see later in this post but we’ll begin with some common myths.
Myth 1: You are not equal when you enter the interview room. This is going to rub some people the wrong way so here’s the quick explanation:
Knowing that you are interviewing with risk averse people if you have a Non-Target candidate and a Target candidate all else equal you are choosing the Target candidate. Why? Well if you and another candidate have the same answers to questions and the same work experience why should they take on additional risk by going with a non-target? They shouldn’t. With that said it should also emphasize the point that you should always shoot for a high level when you are networking (IE: networking with an MD would give you a much better shot than networking into an interview through an Associate).
Myth 2: Lazard/Quatalyst/Moelis/Evercore are boutique banks… This is simple mis-understanding of the space, boutique banks are small firms that people on WSO would unlikely recognize. That’s how you should classify boutique. For one reason or another some people still believe they are boutiques when in reality you should consider them “Elite Boutiques” (term seen on WSO) which essentially means just as difficult to break into as a bulge bracket bank. The truth is a firm like Moelis/Evercore etc. may actually have tougher standards than a bulge bracket bank. Why? If a bulge bracket bank hires 100 analysts, an “Elite Boutique” hires much less maybe just a handful per office. So if a bulge bracket hires a few poor candidates they do not lose as much by training them and subsequently firing them on a relative basis. Again Wall Street is risk averse so “Elite Boutiques” have to carefully handpick the best they can find to make sure they don’t have underperformers as each candidate is likely going to see a wide range of responsibilities where bulge bracket banks can manage a few poor hires.
Myth 3: Many people on here get this last one, however getting all technical questions correct is not important. While you cannot miss easy ones such as how to calculate enterprise value or how to run a DCF, many interviewers simply push your technical knowledge to the edge until you admit you do not know more. This is for two reasons 1) they want to see if you are going to lie and 2) they want to see how much finance you know and of course the more the better.
Samples
With the setup out of the way how exactly do you “stand out” when you answer questions? The answer to this is again two words: Make Connections. What this means is you should tie in all of your work experience, bank knowledge and Wall Street knowledge into all of your interview answers. To avoid beating around the bush here are three examples (feel free to adjust wording, the message is the same in bold).
Why should we hire you? Your average target is going to have a cookie cutter answer such as XX internship, XX interest in banking, hard working because of XXX. So you’ll have a similar answer but you need to spin it and avoid making any comment that suggests you are “smarter” than the other candidates as this will only highlight that you are at a Non-Target, instead highlight your positive points such as work experience and bank knowledge, something like this.
“I’m sure there are a lot of highly qualified people interviewing today and I believe I would be a good fit because of (specific reasons linked to group you are interviewing for such as medical experience if interviewing with healthcare group). In addition, I am primarily interested in XXX space for XXX reason (reason is backed up by resume line items) and have a strong interest in expanding my knowledge in the space where (job position) will offer a steep learning curve. Overall I believe my experience/knowledge in XX will be helpful and am willing to put in the long hours necessary to add value as quick as possible.”
Message: I have experience that is useful, I am humble, I know what I am signing up for and I have a passion for the job.
Why Did You go to XYZ School The answer to this question for most people will be the finance courses offered and other general target school answers. This is actually a set up for you to sell yourself if you went to a non-target. The worst thing you can do is say “I did not get into a Target” again you need to spin your reasoning. Some good examples are 1) financial, 2) location and 3) family.
“I went to Non-Target as I was fortunate enough to receive a XXX scholarship in XXX for XXX reasons. I saw that the school offered XXX finance courses and felt that I could take XXX courses and network into a Wall Street position. Given the cost savings and curriculum I felt that it was a good decision for me to make and I have enjoyed my time at Non-Target”:
Message: I am not apologizing or complaining about the school that I went to, I do have an understanding of finance and I have a legitimate reason for making these decisions
Why Our Bank Here you have a good chance at standing out. Generally speaking most candidates do not know much about investment banking deals/transactions so if you did your homework you can give a standout answer.
“I want to work for XXX bank because I believe my experience in XXX, XXX and XXX fits into the Company’s long history of XXX (type) transactions. As an example I am interested in XXX space and the Company has recently completed (transaction 1, transaction 2, transaction 3) in the last twelve months and this is the type of work that I am interested in.”
Message: I know exactly what the bank does, I know deals that have been completed recently and I know how my experience can fit into the group.
TL;DR: As a Non-Target your goal is to 1) highlight your strong points on a resume, 2) connect with the highest possible person in the firm, 3) have strong answers that explain your decision making over the past 4 years and 4) stand out by knowing and understanding the bank/space better than the Target school students.
Give answers that would sell well to a Risk Averse person and be sure to Make Connections between all of your positive characteristics and those that will make you appear to be a strong fit for the firm.
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Notably we could do a hundred different answers to help spin questions but the point will remain the same, highlight your strong points and appear to be as safe as possible from the viewpoint of the interviewer.
