Banking in Israel

I know there's a lot of tech related and VC jobs in Tel Aviv, but does anyone know the status of the banks in Israel? 

I've seen on LinkedIn a bunch of the banks that have offices in Tel Aviv including Barclays, Evercore, JPM and others, but how big are the offices? Is the pay similar? Are the hours, work on the job, and exit opportunities similar? 

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (15)

  • Associate 2 in IB-M&A
Oct 12, 2021 - 2:11am

From the global shops, Barclays, Evercore and Citi are the only ones with true execution teams there. My understanding is pay is equal to London.

Barclays is like has 1 MD, 3-4 Mid bankers, and like 3 analysts, Citi is slightly smaller. Not sure about Evercore. Other offices are coverage only (retirement plan for MD with perhaps an associate and analyst, zero execution, no trajectory) Jeffries and a couple of others cover from the US. Big 4 + BDO do a lot of the "mid-market" M&A advisory. Local shops are mediocre. Local capital market exists, but is small and underdeveloped. BBs provide access to NYSE / NASDAQ. The entire ecosystem is probably at Dunbar's number. Hours are a bit lighter than in the US, but still banking hours. Most common feeder schools are TAU, HUJI and the IDC , but you basically need to be Summa Cum Laude to have a chance, and there is no grade inflation.

Growth equity exists and is more relevant for banking exits but is rare. Only MF with boots on the ground is Apax Partners, although others certainly invest. 

VC jobs are certainly there but not a lot of crossover between them and banking. Important note that in many ways, your military service basically replaces your college for pedigree (but not for skillset), especially Israeli elite SIGINT and technology units as well as special forces. School is important but degree (Comp Sci) more so, because admission is based on majors, not per university.

Oppenheimer has some ER, and an equities desk.

Most Helpful
  • Analyst 1 in IB - Cov
Oct 12, 2021 - 8:34am

Goldman Sachs, JPM, Barclays, Citi, Evercore all have true executions teams. Morgan Stanley and UBS are coverage mainly building/creating relationships where they feed transactions to their NYC/London execution teams. Credit Suisse is almost hybrid with a small team of a couple MDs and juniors assisting execution with NYC/London deal teams. Jefferies has an Israel Coverage team that is based in NYC that does true execution. 

Pay is actually equal to the US and hours can be slightly lighter (still banking hours), equal to or worse than the US depending on the deal/ # of staffings/ week where sometimes you work well into the night with US based teams (this also depends on which BB as some are worse than others). Something to keep is mind is that given the work week in Israel is Sunday-Thursday, Fridays (especially late afternoon/evening, east coast morning/afternoon) tend to have lots of meetings with US based teams/clients as those (US based) who set the meetings do not take into consideration this is a weekend day in Israel. Analyst counterparts in NYC are typically willing to cover for analysts who cannot join meetings especially if its later into the evening/night on Friday because of shabbat. 

There are 2 "typical" ways to get a spot at a BB in Israel:

1. Off-cycle 6-month internship that you then convert into a full time analyst role (no 10-week summer internships offered) - typically no relevant work experience required but still need good technical knowledge (interns are treated as any normal analyst and are staffed on deals just as any analyst 1 would be). 

2. typically some sort of prior experience is expected for a full-time position (many work in Big 4 TAS/accounting/boutique IB/or small investment funds) as the BBs in Tel Aviv are small offices (and deal teams) so analysts are typically thrown into the mix very quickly. Because the market is so hot, some of the BBs have begun to consider recent graduates for full time hires as the Israeli market (still tough barrier, typically come in as interns) sees no signs of slowing down and competition for relevant talent is high. It has gotten to a point where BBs are actively trying to poach juniors with experience away from each other. 

Keep in mind that because Israelis serve in the army and attend university "later" than US/Europe based analysts they tend to be older when they start (anywhere from 25-30 years old as Analyst 1) and this is seen as normal (also because many analyst 1 come in with some sort of previous experience as mentioned earlier) 

Very interesting work for analysts as the offices are Industry & Product agnostic so deals span M&A, ECM, DCM and all industries, though naturally many of the deals are tech. Another interesting point is that deals are done alongside industry and product groups so you work and meet with lots of NYC/London based juniors and seniors. 

For anonymity wont specify my team, but typically you will see 1-2 MDs, 1-4 Mid levels bankers (Associate/VP/Director), 2-5 analysts, 1 intern 

Exits typically are to VC, Growth Equity or fast growing tech companies as the deal teams here work very closely with the hi-tech ecosystem (everyone knows Israel's hi-tech ecosystem is absolutely on fire, the country accounts for ~10% of global tech unicorns).

Source: I am current Tel Aviv BB analyst 

  • Associate 2 in IB-M&A
Oct 12, 2021 - 2:44pm

+1 on the interesting work. Great to hear about comp, I have a pretty good idea on which team you are on, seniors are good people. 

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
  • Analyst 1 in IB - Cov
Oct 17, 2021 - 4:56am

Would be considered "relevant" experience. Key is to be strong on technicals and know your deals, especially in an IB context 

  • Incoming Analyst in IB - Gen
Oct 12, 2021 - 10:22pm

Thanks, really helpful. Might see my application in the coming years after a few years of experience in NYC so I appreciate all the information.

  • Incoming Analyst in IB - Gen
Oct 13, 2021 - 10:03pm

Definitely not haha. But I probably wouldn't want to move for 2 years or so, I'm really technically in Markets, so I think I would need 1 year in Markets and then try to switch to an M&A or coverage group before trying to move to one of the BB offices in Israel.

Do you need to be a native hebrew speaker?

  • Analyst 1 in IB - Cov
Oct 17, 2021 - 4:59am

Undergrads would not be relevant as they would not be able to give the necessary time commitment while still attending classes/writing exams. Off-cycle interns are expected to be available just like a full time analyst. Typically recent graduates with no experience fill those roles with the "chance" to convert to a full time offer should there be available head count. 

  • Intern in IB - Gen
Oct 17, 2021 - 9:10am

Fugit et iusto laboriosam commodi nam est. Nihil est adipisci ipsa aliquam quis similique. Maxime doloremque animi commodi modi. Ad totam ullam eos modi dolore aut possimus. Officia explicabo est voluptatem officia est inventore.

Aut incidunt eum cumque. Nulla et sed voluptate illum quisquam reprehenderit soluta. Et consequatur aut culpa in. Aut dolorum enim recusandae quo minima consequatur illum. Molestiae non ex mollitia. Libero quaerat unde et exercitationem est iste iure. Ut et quia consectetur quo incidunt officia.

Start Discussion

Total Avg Compensation

November 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (40) $360
  • Associates (235) $234
  • 2nd Year Analyst (144) $156
  • 3rd+ Year Analyst (34) $154
  • Intern/Summer Associate (107) $146
  • 1st Year Analyst (514) $136
  • Intern/Summer Analyst (394) $84