Why are Nat Res and FIG considered to be niche groups?
As title says. I know for FIG they use different valuation but with AM and Fintech being very similar to other industries for valuation surely that offsets it?
Intrigued to know why Nat Res is deemed the same given there's a lot of EBITDA businesses there e.g. metals, agricultural (if Bank groups it there)
Most of NatRes is O&G and M&M and PUI (in some cases) so you model at the asset level rather than at the firm level.
There's a fair amount of niche knowledge behind O&G regarding valuation and as well as the effect of commodity pricing. Also what the VP said below me.
Nat Res (specifically O&G) involves a lot of technical knowledge that includes everything from acreage and mineral rights to decline curves and EURs. Knowing and truly understanding the number of acronyms in O&G alone makes for a steep learning curve relative to most industries.
I will speak for FIG:
Its kind of hard to understand Insurance, Fintech, Banks and AM as models differ a lot, and even valuations are different
You need to understand for example capital ratios as one of the most important accretive measures, its not all about gains.
Deconsolidation of companies can be a pain in the ass to model for large banks with lots of subsidiaries
Even pitching models can be quite complex compared with typical analysis for Industrials or other gorups
Metrics like SII Ratio are also quite important
In the end, they cover very different industries that are usually harder to understand and to model, and metrics differ greatly, making that the understanding of the sector a niche. For sure that a good banker at FIG would have succeed in mostly any other group, but people that want to go to those groups are usually people who like that market a lot as hours are (on average) worse than at any other single group in all the BB/EB/MM...
Be careful with choosing such groups if you dont like the market as you will work more than most other groups and it can be painful
Hi! I am recruiting for IB SA and am targeting FIG roles for companies that have separate processes for FIG and will target FIG on placement day if my offer is generalist. what advice would you have for me as I go through recruiting, and also how much worse are the hours in FIG?
You are targeting london? Dont know other markets. And what kind of banks you are targeting? So I can give you some insights of those (if I know them)
Hi, thanks for the insight. I was warned about this but nonetheless have been allocated to FIG and will aim to get the return offer first. Just wondering if I end up hating the industry, if there's any possibility to swap coverage teams/transferable skills for other teams given how it is so different to other teams?
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