Technology IB Coverage Group - Exits, Interview Preparation, etc.
I'm currently considering pursuing technology as a coverage group for 2021 SA recruiting at some firms in SF/NY. Can anyone with relevant experience/knowledge add some insight on the industry? Are the exits only technology buy-side firms or are exits to generalist PE firms common? Is SF truly the best place to be for technology? As for interviews, what questions should I be prepared for 1st round/superday technology firms? Should I actually have a burning passion for technology to recruit for it?
There's probably some information about this on the site but every time I search for technology it's just people asking about prestige and rankings, so I'd appreciate some advice on the actual group itself. Thanks!
Above poster summarized the space well for BBs. For EBs, Qatalyst is a clear cut above the rest and from what it seems like, they get plenty of looks from all headhunters but have more people interested in VC than any other EB.
Evercore, Lazard, Moelis, and PWP also have strong and comparable practices, and when I was networking before, it did seem like a lot of strictly tech deal flow (not media or telecom) flowed through the SF/Menlo offices of these places. I’m not sure about NY tech exits but I know multiple people at each place in the SF/Menlo offices who have gone to MFs. But more work on tech dealflow may be offset by the geography of NY offices, so I’m sure exits are comparable.
Also, the historical exits at the EBs are better per analyst than comparable BBs except GS/MS.
Going to a top tech group and can share some insights into the MM space (particularly SF) as comments above did a good job talking about BB/EB. Jefferies has amazing deal flows albeit sweatshop culture and often punches above its weight by being hired on billion dollar mandates. Liontree kills it in the Media & Telecome space while WB kills it in the Technology space (particularly software). In my opinion, those three should be tier 1 MM banks for tech coverage that are way ahead of the rest.
Definitely agree with most of points made previously, with a few caveats. Will say that CS TMT SF/NY has dropped off significantly from where it once was, with multiple senior bankers leaving the firm. Not sure how their exits are, but JPM and CS are both equity focused shops that don't have exits comparable to the big 3.
GS,Q,MS are the clear leaders in the field, with a very wide margin between these groups and others with regards to both exit opportunities and dealflow. By their nature, analysts will tend to exit more to VC than to traditional buyout PE, but those opportunities are more than plentiful if you are at one of these shops. MS tends to get mandates on the biggest IPOs, while GS and Q both tend to get the biggest M&A deals, but again, not a hard and fast rule.
The interview process for the tech teams is much more technical, and you need to know the in's and out''s of all the verticals within the industry. The valuation methodologies differ significantly even within the tech sphere (for example, a fab semiconductor company vs a high growth SaaS company are entirely different beasts).
Make sure you have a very solid reason as to why Tech, as each of the firms will drill down very hard to make sure you know what you're getting into. I noticed that a fair amount of analysts had dual comp-sci/engineering degrees (Penn M&T etc..), definitely not a requirement, but helps a ton to demonstrate interest.
northwestern mutual should not be overlooked. top feeder into VC