4/2/10

Hi guys,

I am interested in learning about the chemicals investment banking world. It seems that banks with chemicals groups are very lean and that outside of the large banks/established MM, there doesnt seem to be much competition. Would anyone know of any botiques or regional players in the US. that are reputable in the chemicals space? Thanks

Comments (37)

4/2/10

blaige

Investment Banking Interview Course

3/19/11

which are the top chem ibanks

3/19/11

Blaige in chicago

3/19/11

the best botique is the bot fly. it lays eggs inside ur mind and a larvae hatches. absolute pwnage

3/19/11
boutiquebank4life:

the best botique is the bot fly. it lays eggs inside ur mind and a larvae hatches. absolute pwnage

its amazing how much you post and how little value you add

  •  3/19/11

The best chemical groups according to Bloomberg are:
- Goldman Sachs
- Morgan Stanley
- Citigroup
- Credit Suisse.

I certainly wouldn't have thought that CS, UBS and DB would be classed as Tier 2 banks...the exit opportunities from UBS and CS would be excellent, less so for Deutsche.

I don't think you'd have a problem switching laterally to another sector, but going to PE or Hedgie would be a bit harder.

However, as long as you know the fundamentals and can model LBO's till your eyes fall out, you shouldn't have a problem with any PE shop.

3/19/11

any other thoughts?

  •  3/19/11

UBS LA and Deutsche's leveraged finance team are some of the primary feeders into PE shops - so definately NOT tier 2.

Agree with the 5 banks' chemicals teams named earlier.

3/19/11

UBS LA and Deutsche's leveraged finance team are some of the primary feeders into PE shops - so definately NOT tier 2.

Same with CS

3/19/11

What do you guys think is the outlook for Chemicals IB in general? Exit-ops, etc

3/19/11

What are the opps like in general from Chems? HF possibilities?

Investment Banking Interview Course

3/19/11

GS, MS, Citi. No

3/19/11
LeoMessi:

GS, MS, Citi. No

Thanks. What about UBS?

3/19/11

I heard DB used to have a fairly strong chemicals group, around 2-3 years ago.

3/19/11

bump

3/19/11

Barclays. Of the last 6 analysts, one went to HBS, one went to SAC, and one went to Carlyle. Not 100% sure where the other three ended up but I'm fairly certain they did well for themselves.

3/19/11

MS has great chemicals in LDN

3/19/11

stvr2013:

Barclays. Of the last 6 analysts, one went to HBS, one went to SAC, and one went to Carlyle. Not 100% sure where the other three ended up but I'm fairly certain they did well for themselves.

Why?

3/19/11

Also interested specifically in Barclays Chemicals

3/19/11

anyone ever answer this?

3/19/11

pretty standard, EBITDA driven companies
very cyclical, lots of distressed cases
value chain revolves around cracking and turning oil/nat gas into requisite components

3/19/11

At London, i know that ML and Citi and DB are quite good....

I heard surprisingly that GS isnt very strong at chemcials.

3/19/11

ny?

3/19/11

what makes you want to get into chemicals? It's a neat sector, but extremely cyclical. We just finished a rough patch with LyondellBasel and Huntsman's near death.

3/19/11
ChemicalBank:

what makes you want to get into chemicals? It's a neat sector, but extremely cyclical. We just finished a rough patch with LyondellBasel and Huntsman's near death.

You are seriously misinformed. Huntsman was never "near death," the buyout contract by Apollo, using obscene amounts of leverage, fell apart a couple years ago because Apollo had buyers remorse when the credit crisis occurred and then dishonorably pulled out of the deal. Apollo claimed that the combined company would be insolvent...but huntsman alone was not in financial trouble. Right now Huntsman is very solid btw.

I am not a chemical or industrials banker lol.

3/19/11

Thanks for answering the question

3/19/11

Anyone???

3/19/11

GS
MS
Citi

Big drop off

Everyone else

3/19/11

From CS website:

Chemicals Group
The Chemicals Group is the #1 chemical franchise on Wall Street, having been involved in 25 of the last 28 chemical equity transactions, approximately 50% of high yield offerings in the last two years, and more than 90 M&A transactions with combined value in excess of $125 billion since 1996. The Group has professionals in New York and London. The chemical sector investment banking market remains strong and is expected to grow, driven by:

Significant increase in M&A activity by both financial sponsors as well as companies seeking to optimize their portfolios
Strong equity issuance with expected follow-on offerings by recently listed companies
Leveraged loans and high yield debt required by clients that seek capital to grow organically and through acquisitions

3/19/11

Take that stuff with a grain of salt. It's the CS website after all; sounds like standard, propaganda-laden, pitch material. Every group at every bank will tell you they're #1 according to this, that, or the other.

I've heard Citi has a top flight Chems group, and obviously it stands to reason that GS (Natural Resources Group) and MS(?) would be up there. Any Chems bankers on the board to verify this?

3/19/11

MC2

3/19/11
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