Wells Levfin or FSG?
Hi all, just curious if anyone has any thoughts on Wells Fargo's levfin and sponsors groups. Which is stronger/has better exits. I've heard FSG holds the pen on LBOs...
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Based on the most helpful WSO content, both LevFin and FSG have their own strengths and unique aspects.
LevFin is more focused on structuring, market comps, and distribution risk than traditional corporate finance or modeling-related work. They are arrangers on a fair number of bond deals. However, it's important to note that they might not be able to do much for leveraged loans since some banks have a super conservative credit culture and don't readily provide capital to those types of companies.
On the other hand, FSG deals with aligning the investment bank’s strategy from their PE clients. They have to be mindful of the bank’s risk parameters and source deals they know the bank can have a meaningful role in. The initial financing view is the most important part of the process in FSG and requires an understanding of leveraged loan market dynamics, pro-forma combinations of business and capital structures.
As for exits, it can depend on what you're looking for in your career. Both groups offer different experiences and skill sets that can be valuable in different ways. It's always a good idea to consider your long-term career goals when making such decisions.
Remember, it's not just about the group, but also about the people you'll be working with, the culture, and where you see yourself fitting in best. So, take your time, do your research, and choose wisely!
Sources: Joining LevFin and FSG at this point in the cycle, Life In The Financial Sponsors Group, Wells Fargo Groups
FSG by a pretty large margin right now.
Why is that?
from a pure PE recruiting perspective, if you can impress your seniors, fsg because the new seniors will be able to help you have very solid exits, but i also cant imagine most HHs keep up with the industry enough to know that the group has a lot of new senior talent. if you like RE do RE as that group has a pretty good rep and if you want a capital markets intensive experience you’ll definitely get it at wells RE
Depends on what you want to do. Sponsors mostly writes a lot of preliminary memos to get approval for LBOs. LevFin gets involved shortly thereafter. Sponsors models for preliminary purposes, but leveraged finance/leveraged underwriting will actually model for the larger internal approval process. LevFin will execute the LBO and deal with investors for the debt etc. LevFin decides what the deal structure is and how much leverage etc.
So, sponsors is very fast paced, fairly superficial. WF doesn’t get many buyside or sell side mandates from sponsors, so not much M&A work. Managing sponsor relationships is really about senior bankers (with less info needed for pitches than industry coverage), so the sponsors team ends up mostly writing quick and dirty short form internal memos. Those memos have a tendency to be produced between 5pm on Friday and 9am Monday morning (since that is when sponsors like to reach out).
Thanks so much!!
From a career perspective which would you lean too?
Look, no one is ever gonna question why you went to Wells Fargo Leveraged Finance. When you read posts on this website, everyone says do REGAL or LevFin. Sometimes other groups are mentioned (not usually sponsors), but they always mention LevFin. I’d do LevFin between those two choices.
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