I am an industry group analyst at a BB, and in my 6+ months, have had 0 modelling experience.
I have had some deal exposure (2 buysides that died), so I have something to talk about re:
live deal exp.
But compared to the M&A and lev fin guys (who don't have a lot of deal exp thanks to the
market conds, but still can model a lot better), my technical skills are not that hot
Right now I am mostly staffed on pitches, and while I learn interesting company and industry stuff
all technical stuff in pitches is outsourced to M&A/Lev fin
I am fairly busy, so its not like I have a load of free time to learn modelling really well
So to all you industry analysts who made it to PE (or anyone qualified), please offer some advice.
Recruiting season is coming up soon....and I would like to start getting prepared...
Industry to PE is hard to do unless you are at a firm that executes out of their industry group or MS. That being said, it's not impossible. My suggestion would be to find a shop that focuses in on the sector you work in. Assuming you are in a good bank with decent deal flow (not like BoA Chemicals or some shit like that), you'll be fine as long as you can find a way to hammer out the modelling tests (just learn the basics, review TTS models etc).
BTW, top groups are already getting calls from SG/CPI/Oxbridge and the like... even in this shitty markets the headhunters are out already trying to find the 'best'
It can be done... At least when I was at my bank, the Industry Group analysts did alot more modeling from scratch and more thoughtful analysis. The lev fin guys worked off of the standard committee template and basically just plugged in numbers from our model. My bank executed mostely from the industry groups though, and did all M&A from the industry groups. I think while interviewing my industry knowledge coupled with my modeling and thoughful analysis (able to speak thoughfully about why and how I did something) helped set me apart from the mass of lev fin analysts.
bump
You'll be fine. You have 3 or 4 months to prepare, and I suggest knowing the deals you were a part of down cold. It goes without saying you should know financials, multiples, valuation. Study the models as if you made them yourself. Or build quick ones yourself. Practice modeling LBOs quickly. Be able to build a simple one in 2 hours or so, the kind that can be done in one sheet (or split into several sheets, depending on your stylistic preference). S/U, cap structure, I/S, B/S, CF from operations and FCF, debt paydown with amortizing debt schedule, and returns analysis. Be able to create toggles for different leverage and operating scenerios. If you can do that in 2-3 hours, you're fine.
In the future, fight to get some technical experience out of your deals and pitches. I was also in an industry group and the tendency was to farm out all work to M&A, Sponsors or LevFin. If you want the experience though, speak up to your staffer and senior bankers. My group always fought for us to retain some of the valuation analysis in the industry group, and oftentimes entire models were done out of my group as a result of people speaking up.
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