BAML TMT vs. BarCap

rockinit10's picture
Rank: Chimp | 2

I'm currently considering BofA ML TMT or Barclays Capital Generalist IBD ... I was wondering if you could help me out with two questions. This is for FT Analyst.

  1. Does anyone have any info on how good BofA ML TMT is?
  2. Would you reccomend to accept BofA ML TMT or BarCap general IBD? Which is better?

Comments (14)

Nov 16, 2009

Take the ML deal.

League table wise, ML TMT is top 20 (totalled up telecommunication, computer, media and some more under this realm) on mergermarket.

Barclays is still an up-and-coming british bank that hasnt made its mark completely yet in US soil.

if your deal is in the US, ML for sure.

Nov 16, 2009
alwayshere:

Take the ML deal.

League table wise, ML TMT is top 20 (totalled up telecommunication, computer, media and some more under this realm) on mergermarket.

Barclays is still an up-and-coming british bank that hasnt made its mark completely yet in US soil.

if your deal is in the US, ML for sure.

Why do people offer advice when they have no idea what they are talking about... the kid is obviously weighing a career decision and you obviously have zero experience or an idea of what you are talking about, in the future say nothing

I don't have the answer to the above, but a few considerations in general: 1) the people... you have a good idea of who you'll be working with at BAML b/c you know the group and this is a very big consideration... if you like the people and you feel you'lll thrive in the environment, this would be a strong case for BAML 2) deal flow- well you know you'll be in TMT at BAML, so ask some senior bankers what they think deal flow will look like in that space 3) modeling experience- does the TMT group do a lot of its own modeling for M&A transactions, or will you just be pitching and spreading comps 4) exit opportunities- depends on the group and the bank... overall barclays probably has a slight reputational advantage to BAML b/c of Lehman and the differences in the integration (lots of merill bankers left, not so much at Lehman)... fyi, barclays in NYC is pretty much lehman brothers... also not too sure if TMT is a great group at BAML, so weigh that against potential groups at barclays 5) comp- not sure how much the gov stake will play a part in your bonus (prob very little for 1st years) but its still a consideration

overall, from my perspective, the biggest consideration ought to be deal flow...you want a lot of deal experience, and there are little differences between two BB's overall.. after that i'd look at the people and the respective cultures (ambiguous though)... exit opportunities will generally be a function of these, and how much you can thrive in the respective environments

Nov 16, 2009

I guess I'll play devil's advocate.

alwayshare is wrong... but not completely off base as you make him out to be.

BAML TMT is better than top 20, it's at least top 10. Barclays has made its mark in the US, but it has not made its mark globally. BarCap only acquired the North American IBD operations of Lehman.

I would say Barclays is more stable and I would give it more prestige as an entire firm. However, comparing investment bank to investment bank, dealflow is better at BAML.

As for the integration, tons of the best Lehman bankers left before BarCap acquired them. Lehman actually went bankrupt and it was foreseeable for a while. Most bankers when they think there is that possibility won't stick around. It's true since the acquisition Diamond has done a good job of retaining the remaining talent though. BarCap in NY is indeed Lehman, but that's because Barclays did not have much of a North American investment bank to begin with.

Less than 10% of the ML bankers left (across all divisions), mostly in areas where BofA and ML were both strong. However, BAML is a combination of the best from both legacy banks. BofA's investment bank wasn't as strong, but they still did have some good bankers.

BAML pays on par with JP Morgan and Morgan Stanley. Bonuses for second years at BarCap this summer was 40k-50k. Top bucket at BAML for second years was 62k.

OP: If you are pretty confident you would be placed in a coverage group at BarCap, then I would go based on people as mergerarb mentioned above. However, if you like the TMT industry and there is equal likelihood you could end up in ECM or DCM, I would strongly consider BAML. At the end of the day though, you should go to the firm that you feel comfortable with. Both firms are great places to start - congratulations on your offers.

Nov 17, 2009

BAML's TMT group all ML guys? Do they have decent deal flow? Are they only pitching and passing M&A along to the product guys?

Nov 17, 2009

BAML has a separate Tech office in CA, all legacy ML guys. It has both coverage and M&A groups.

Nov 17, 2009

haha relax boys...

my opinion is just my opinion, you guys can have your own :)

but its good to see more replies for thread.

Nov 17, 2009

alwayshere:

Are you in BAML's TMT group or do you know anyone who is?

Nov 18, 2009

bump. any info on BAML TMT?

Jan 30, 2010

BofA ML integration has been messy, BarCap Lehman has been MUCH more smooth. Lot's of difficulty getting things done currently at BAML due to the integration process and not a lot of synergies. BarCap has had a relatively seamless integration and now with Lehman has a powerhouse US division with multiple locations and a growing European team with ops in nearly every country.

BAML would be a poor choice.

Jan 30, 2010

There is merit to the argument that the Barcap integration has been relatively smoother than the BAML one. However, there are very obvious signs that BAML is very much back on track:

For 2009 Thomson League Tables:
http://media.ft.com/cms/29a38658-af21-11dc-880f-00...
Overall Revenue:

  1. JPM
  2. BAML
  3. GS
  4. MS
    ...
  5. BARCAP

M&A Revenue:

  1. GS
  2. JPM
  3. MS
  4. BAML
    ...
  5. Barcap

Debt (DCM + LevFin)

  1. JPM
  2. BAML
  3. Citi
  4. DB
  5. Barcap

Equity (ECM)

  1. JPM
  2. GS
  3. MS
  4. BAML
    ...
    barcap not in top 10

Loans:

  1. BAML
  2. JPM
  3. Citi
    ...
  4. Barcap

League tables are to be taken with a grain of salt. That said, given the above info, draw your own conclusions.

Feb 1, 2010

ibhopeful has a good point, but also keep in mind that the league tables above are global, so Barcap's low rank in M&A is to be expected. In US M&A league tables, Barcap outperforms BAML:

  1. GS
  2. MS
  3. JPM
  4. Citi
  5. Barcap
  6. BAML

Also, the league tables above are based on net revenue. Looking at deal value (i.e. actual dealflow) instead, Barcap is second only to JPM globally in debt:

  1. JPM
  2. Barcap
  3. Citi
  4. BAML
  5. DB
  6. GS

In terms of equity, however, it's true that Barcap has a lot of catching up to do both in the US and globally.

Feb 1, 2010

Which M&A league tables are you looking at? Thomson US Target Completed says:

  1. MS
  2. GS
  3. BAML
  4. Citi
  5. JPM
  6. Barcap

Ranking above is based on deal size.

Feb 1, 2010

Thomson Reuters US Target Announced, based on deal size.

Feb 1, 2010
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