Just got summer offer for capital markets role at a BB. Looks like it will be Leveraged Finance Capital Markets, which, from my knowledge, sounds like LevFin Syndicate desk. I know they have a separate LevFin group, so doesn't sound like it'll be regular LevFin banking. Doesn't sound like it'll be ECM, maybe chance at DCM, but probably LFCM.
What are exit Ops for a role like this? Also how does pay compare to regular IBD?
Thanks
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How do you not know what the role you got an offer for is....
Um it's a capital markets summer offer, I know what they do, they didn't tell me how much a FT analyst or Associate bonus is... Looking to hear perspective from other people who have been on the street for a few years.
Thanks
Do they not tell you that you will be working with ECM or DCM or LFCM? Or is it a generalist role?
I work in IB Lev Fin, but generally the capital markets counterparts get paid pretty much the same, maybe a slight discount later on up the ladder. Different role that is more markets facing rather than execution. They do have better overall hours, but also get in earlier.
Why don't you ask them to clarify? They won't rescind your offer, and it's a normal question to ask before accepting an offer. HR might even put you in contact with a banker who can answer your questions.
I probably will clarify before I sign, but still want to find out as much as I can on my own first. Regardless of LFCM or DCM will probably take the offer in this economy and curious as to exit opps of both. Don't really want to ask that to the contact they put me in touch with, feel like not a great look
Unfortunately, this is actually a very bank-specific question, so you probably have to share your company to get the most value out of this post. LevFin, specifically, looks very different depending on what BB you are at, and so how Capital Markets interacts or faces LevFin is also going to look pretty different at the different banks. For instance, I know that anything and everything that is LevFin (origination, syndicate, sales) actually falls under DCM at JPMorgan.
Don't want to post name, but from what I heard they have a strong LevFin group, not exactly sure of the dynamics of LevFin vs Coverage/Sector groups, but the LFCM group is responsible for marketing the deal, providing market analysis and comps to the bankers for the deal, and the more Sr. folks are more involved in the structuring and pitching throughout the process. So i've heard. LFCM here has little to no modeling experience, but they follow the transaction and are 1/2 market facing 1/2 banker facing
If it's JPM or BAML, those are the top LevFin groups.
Sounds like a unique role, but probably won't be the "experience" that buyside firms will want. You will probably have to spin your resume creatively to get interviews, and will probably have to do extra work to be competitive against kids on "proper" LevFin who are involved with credit analysis, indenture analysis, deal structuring, cap-structure modeling, etc.
That being said, if you are at a top LevFin group, you will probably have exposure to lots of cool stuff and will likely have the opportunity to follow some of the deals and see some of the analysis mentioned in the paragraph above. You will have to work a little harder to get up to speed with what is going on, but you could probably land buy-side exits with effort and luck (true of any candidate).
All that said, knowing the market really well would put you at an advantage against other kids who are only involved in deal-specific roles like "traditional" levfin, so if you were to network and try to move into a role like that where you can get a little closer to companies, then you would probably be a very strong 2nd year analyst no matter what you were looking to do.
i am in this space and can weigh in. just DM me if u wanna know what we actually do. but u can go to buy-side credit funds, and I have examples where that has happened, including Jefferies and even Natixis - which prompted job postings / interviews to replace that role in the past year. and know ppl in this space that has Exited to buy-side. its a good role that has decreased risk of 2-4am nights every day for 6 weeks straight, bc u arent creating and CIM and LP.
Pasting job descriptions below from 1) Jefferies 2) Natixis 3) Golub (very well worded)
**Jefferies Associate/VP – Leveraged Finance Capital Markets
**Responsibilities: • Working with senior members of the team to screen new transactions • Working with investment banking to prep new deals for marketing • Talking to investors to help sell deals and answer their questions • Working with sales to make sure deals are being sold properly and broadly • Speaking to lawyers to work through documentation – credit agreements, indentures, etc • Talking to traders to understand market technicals - both broad and company specific • Tracking current market statistics including deals in the market and priced transactions • Helping design the marketing strategy with execution teams and our account base • Supporting the group with research on comparable transactions for pitches and the selling and structuring of bond and loan transactions • Provide research and statistics to potential
Natixis CIB Americas – Leveraged Finance Capital Markets Associate Job Description (10.16.2019) [REF #NA01110]
The analyst on the Debt Capital Markets desk is responsible for a variety of tasks related to origination, structuring, and syndication. Responsibilities include, but are not limited to: • Responsible for the origination, structuring, marketing, documenting, syndication and amending of leveraged loans and high yield bonds in connection with LBOs, mergers & acquisitions, refinancings, dividend recapitalizations, asset purchases, restructurings, distressed and other event-driven situations • Draft term sheets and lead negotiations with respect to key provisions within commitment papers and credit agreements • Maintain a high level of dialogue with sales & trading, buy-side investors, private equity sponsors and corporate issuers with regard to market conditions and idea generation • Manage the syndication process where Natixis is lead-left; seek regular syndication updates from other leadleft banks when Natixis is passive. • Maintain and develop databases and produce credit market updates Desired Skills and Experience • Bachelor’s degree with a major or focus in finance, economics or business from an accredited college/university. • A minimum of 2-3 years of related experience in one or more of the following areas: loan capital markets, high yield capital markets, leveraged finance or investment banking • Experience in structuring and syndicating non-investment grade debt to institutional investors
Golub Capital – Associate – Capital Markets Job Description (11.14.2019)
The Capital Markets Group within the Middle Market Lending Department structures, syndicates, and executes transactions for middle market and upper middle market companies. With the ability to underwrite up to $1 billion, Capital Markets provides a variety of customized First Lien, Mezzanine, Second Lien and / or Unitranche financing solutions for private-equity backed borrowers. The group’s robust distribution capabilities expand from relationship-oriented middle market lenders consisting of banks, finance companies, and broadly syndicated loan asset managers. Position Responsibilities Golub Capital is seeking a transaction experienced, credit-focused individual with strong interpersonal skills to join the Firm’s Capital Markets Team in New York. This individual will be responsible for working with senior staff in structuring, syndicating and executing transactions in the upper middle market, middle market and broadly syndicated debt markets. Primary duties and responsibilities include, but are not limited to: Leveraged Loan Structuring and Syndication − Assist in the deal structuring and syndication process by participating in management meetings, internal deal team calls, modeling cash flows and determining industry and EBITDA size appropriate comparable transactions − Compile and organize debt comparables requests from the Underwriting Team − Prepare Capital Markets’ material submitted to Screening Committee or Investment Committee with appropriate back-up material and analysis − Assist the Leveraged Finance Team with (i) the creation of Confidential Information Memorandums (CIM), Lender Presentations (LP) and Rating Agency Presentations (RAP) and (ii) responding (both written and verbally) to lender questions for deals in market − Support in the monitoring of Golub Capital’s current Administrative Agencies by posting financials and other bank group notifications, along with processing amendments / waiver requests − Participate in negotiating grids and commitment papers for middle market and broadly syndicated transactions and become proficient in key capital markets components of credit agreements and inter-creditor agreements − Work with Originators on marketing pitches for prospective sponsors − Continuously update comparable deal database and contribute to the team’s monthly loan market update − Capture and track key performance indicators specific to the Capital Markets Team − Perform independent research on companies and industries Marketing / Industry Network − Develop industry expertise by reviewing new deals, reading research reports, talking to investment bankers and attending industry conferences − Develop and maintain peer level relationships with other investors and industry analysts − Ascertain market intelligence as it relates to specific deals under evaluation or valuable trends to help us assess future business − Participate in marketing events
If it’s LFCM I used to work in the group at a bank so can answer some questions. Generally from what I’ve seen the pay is nearly the same as the lev fin origination. They’re generally in a sales role helping the syndication / book building process and pricing the debt before going to market.
In my experience the group tends to be very senior heavy with few junior employees compared to a traditional group. Also the junior experience tends to be much less technical so you won’t be doing any modeling. In regards to exit ops, I’ve seen people lateral internally to a traditional IB group but don’t have much experience with other exits. I assume it’d be fairly difficult to exit to a traditional PE shop from this group. Let me know if you have any specific questions I can try to answer although I spent limited time within the group.
Thanks, that's very helpful.
The biggest concern/question was tying myself down to capital markets and after 2/3 years not having exits to buy side (I don't need PE, could be private credit, CLO issuer, distressed debt fund etc.) - is that realistic?
Also, if i would have to do 2 years in regular banking as an analyst in addition to the capital markets role to get to the buyside, why not just get it over with and do it now? is there career/monetary benefit to doing capital markets just do banking after?
Lastly, when switching to regular IB did they make you an associate/were you higher on the totem pole given your experience in LFCM, or did you start as if you were a day1 FT recruit out of undergrad? Thanks!
CAUTION: misinformation 2 posts above by someone trying to be helpful but may not be in the direct group (Lev fin capital markets). I say that w/ all due respect - thank you for your contributions. I can weigh in more detail later but:
1) “sales role” - NOT a sales role (distribution). That’s the Loan Sales - distribution. I pasted 3 job descriptions above - 0 say sales. We do structuring, arranging, syndicating, and executing from origination to close. At a certain point during that process, we engage loan sales.
2) not technical - how do you figure other roles are more technical? Performing due diligence, analyzing legal docs in depth (commitment letter, fee letter, credit agreement), spread comps, to structure the deal, etc. requires a lot of technical expertise IMO.
I forget what other claims were said, but that’s good enough for now. If I’m totally wrong lemme know but that’s my view
Maybe it depends on the bank - if a bank has a levfin team and levfin capital markets team broken out separately, would make sense that the capmarkets is more markets facing, less originating and structuring and the levfin group itself is doing what you described above
But if they only have 1 group what you're saying would make sense (not sure about Natixis, it's a small bank and i haven't seen them leading left from my research, so might all be the same, unsure)
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