Based on my understanding, it seems that at some large investment banks, there is a M&A group that does most of the modeling work while the coverage groups don't do much modeling. If that is the case, are coverage bankers highly sought after for P/E positions or corporate development roles? Is it just about the prestige?
| +449 | BOFA ALREADY TRYING TO COVER UP THEIR TRACKS | 60 | 5m | |
| +188 | This is a dark day for Wall Street. | 19 | 5m | |
| +154 | Investment Banking US League Table YTD 2024 (FactSet) | 84 | 18h | |
| +146 | Big Layoff at Barclays - 5/1/24 | 85 | 2h | |
| +87 | “Americans just work harder” | 53 | 1d | |
| +83 | Would comitting to ATL İB be stupid? Please give feedback. | 45 | 3d | |
| +69 | Sleeping on Jefferies??? | 33 | 7h | |
| +66 | A shitter's comprehensive guide to sophomore year recruiting | 7 | 1d | |
| +61 | Bank of America - Juniors Strike to start Monday May 6th | 8 | 3m | |
| +60 | What's up with RBC nowadays? | 25 | 2h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Varies bank-by-bank / group-by-group how much modeling coverage analysts do, but their familiarity with a certain industry is a point of value if they join a team at a PE firm with a similar industry focus. Knowing how companies trade / should trade in the market is a valuable skill that negates some assumptions a person with an irrelevant industry background would have to make and allows them to sift through the bullshit quicker. Some banks also don't have M&A groups (e.g. GS)
My advice - shoot for M&A and industry groups; I wouldn't target Financial Sponsor groups as all of my friends in them have said they really don't do / learn much in comparison to other analysts
Hmm, but there are plenty of other jobs that give you industry experience. Equity research is one example, yet it seems like bankers are more attractive to employers than ER.
I'm not qualified enough to answer this, but it seems to me that this follows the same train of thinking for why IB recruits from target schools: the most intelligent, driven, and hard-working people are more likely to be at target schools for recruiting, and then as such PE firms are more likely to find the kind of people they want from IB. Because IB carries the historical prestige with it, higher achievers are more likely to be drawn there, and PE recruiters have a better chance of finding who they're looking for there.
Agreed, but it's tough to get experience strategizing how to market a business which translates into knowing what the material investment considerations are / aren't without being apart of the sales process in IB. Companies are also valued off of wacky metrics determined by MDs that sometimes only apply to the company itself (e.g. - most education business are valued off of adj. contribution margin, and the adjustments can be extremely subjective, which is where the IB experience comes in)
Your understanding of who does the modeling is a generalization and frankly wrong. Analysts in the coverage groups at like CS, Citi, MS, etc. are all doing quite a bit of modeling work despite having an M&A coverage group as well.
I like hiring ex-PE guys/iBankers (for ops roles) because they can learn fast, have no problem putting hours in, are detail oriented (yes those PLS REVISE from Lord MD did pay off), and obey well.
I think you have it a bit backwards. The question should be "why are investment banking JOBS so sought after?" The banks don't need to pursue anybody as there are thousands upon thousands clamoring for these slots. It's like saying entry level actors are "highly sought by studios".
Numquam et nam doloremque ut. Aut quia doloremque facere sit libero autem quia. Expedita et dolorum quos temporibus magnam nihil quis.
Ex odio et consequatur deserunt tempora. Consequatur eum laborum vel non. Et harum modi nostrum nobis.
Dolorem odio fugit velit dolorem rerum excepturi. Aut iusto sequi tempora nihil. Dolorum illo dolorem rerum laborum voluptatum rerum. Ullam corporis velit aut eveniet adipisci doloremque. Debitis impedit vel quibusdam ea qui molestiae aut. Et voluptas esse veniam id voluptas. Quis dicta dolorem veniam quidem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...