Strategic Equity Transactions / Solutions Group?

Hello guys, i'll soon have an interview with a similar group in a BB in London.

From what I get they create bespoke solutions for corporate, investors etc in order to help them to build stakes, hedge exposure, retain upside after sell downs...

What do they actually do? What are the comps/ exit opps? How would you compare with vanilla ECM/DCM?

Thank you!

5 Comments
 

Based on the most helpful WSO content, Strategic Equity Transactions (SET) or Solutions Groups in Bulge Bracket (BB) banks focus on creating tailored financial solutions for clients, including corporates and investors. Their work often involves:

  1. Bespoke Solutions: Designing strategies to help clients build stakes in companies, hedge exposures, or retain upside after sell-downs. This could include structured equity products, derivatives, or other innovative financial instruments.

  2. Complex Transactions: They handle transactions that go beyond the scope of traditional Equity Capital Markets (ECM) or Debt Capital Markets (DCM). For example, they might structure equity-linked products like convertible bonds, equity swaps, or other derivatives.

  3. Client Focus: Their clients typically include corporates, private equity firms, hedge funds, and high-net-worth individuals looking for customized solutions to meet specific financial or strategic goals.

Comparisons with Vanilla ECM/DCM:

  • ECM/DCM: These groups focus on more standardized capital-raising activities, such as IPOs, secondary offerings, or bond issuances.
  • SET/Solutions Groups: They operate in a more niche, specialized space, often requiring a deeper understanding of derivatives, structured products, and client-specific needs.

Exit Opportunities:

  • Private Equity: The skills in structuring and understanding complex financial instruments can be valuable in PE roles.
  • Hedge Funds: Particularly those focused on event-driven or arbitrage strategies.
  • Corporate Strategy/Finance: Leveraging expertise in bespoke financial solutions for strategic corporate roles.
  • Other BB Groups: Transitioning to ECM, DCM, or other capital markets teams within the bank.

This group is often seen as more technical and specialized compared to vanilla ECM/DCM, which can make it appealing for those interested in complex financial engineering and bespoke client solutions.

Sources: Investment Sales Vs. Debt/Equity Brokerage, Exit opps for corporate strategy, Strategy& Recovery, EY OTS rebranding to EY-Parthenon M&A Strategy - Thoughts?, Q&A: Corporate Strategy

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Exit opps I’ve seen are wealth management or sponsors group within the same bank

 

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