Consumer/Retail Groups
Hey Everyone,
Does anyone have opinions on Consumer/Retail groups? Are the exit opportunities similar to every other group? Retail seems like it would be useful in PE. What banks are best known for their retail group? Any other information on the retail group would be great.
Tons of HY issuances going on in that sector right now. Tends to be lifestyle friendly.
Top banks include GS/Barlays/BAML/Centerview
Consumers will be hit hard for a while, which obviously affects ConRe
PE invests in every sector, and retail is just one of them
not really related to your question, but group tends to have more girls
Anyone have any comments on the retail groups at GS and BarCap? Is there any downside to a retail group?
peter j solomon
BAML is not a top consumer shop. Centerview and GS are the best. Laz, C, DB and PWP are also good. You need strong coverage in the consumer/retail space as the big hitter clients (ie Altria) generate most of the fees.
Lehman used to be good but Barclays hasn't replicated the same success. They got cut from the Cadbury deal.
Exit ops depend on the bank obviously but most PE shops have a consumer/retail/general industrials focus.
Barcap retail is top notch (consumer not so much). Only downside to retail is that it isn't that complicated and it's possible for someone with adhd to get bored over time, 4-wall ebitda only goes so far.
cluelessbanking: def agree with you on top notch consumer banks
Agree with shoeless. Andrew Taussig is a Retail banker, he is not a Consumer banker. BarCap (or rather Lehman) Consumer has never been top notch.
Centerview Consumer is one of the best on the street because they have Blair Effron (ex-UBS banker).
Get your facts straight. Lehman used to be tops. They worked on a bunch of Altria deals in 07 and 08 (Kraft spinoff, UST). Centerview is good because Blair and Bob Pruzan (former president at Wasserstein Perella) are there. In fact, Wasserstein was by far the best consumer shop on the street. Bruce and Joe ran sht and ppl below them picked it up from the best (Kenneth Tuchman, Bob Pruzan, etc).
I agree that Lehman worked on two big Altria deals. But as far as I can remember, those are the only two >5Bn deals that they've done in the US in the past 5 years or so. (Please correct me if I am wrong here.) On the other hand, they have missed all of these following big US consumer deals, even before they were acquired by Barclays: - AB-InBev - Gillette-P&G - Wrigley-Mars - Dr. Pepper-Cadbury - Gerber-Nestle
Also, they worked on the spin-off of Philip Morris, but they never worked on the acquisition of UST later in 2008. (even though it was only a 11Bn deal, much smaller than the spin-off of Philip Morris).
If you want to add missed deals after Barclays' acquisition, you will have - PAS/PBG-Pepsi - Cadbury-Kraft - Mead Johnson-BMS
You do not rate a team top notch because of two deals. They are still a decent team, but won't be Top 5.
Get your facts straight.
How does Citi's Consumer team fare now?
bump
any recent thoughts on who are the top C&R shops as well as exit ops?
bump
bump
Best Consumer & Retail Group (Originally Posted: 04/28/2011)
Hey guys,
Haven't been able to find a discussion here on the best on the street for C&R.
What do you think?
I think GS (did J. Crew and have heard they are tops) and C have pretty good consumer/retail groups. Centerview as well, and Peter J. Solomon on the boutique end of things (did Walgreens/Duane Reade and a bunch of others).
JPM is up there as well.
I've heard BAML is the best.. any truth?
I know BAML C&R has a sweatshop rep, but not sure if its from dealflow or pitch-happy MDs.
Interested in this group as well. Anyone know about the culture of the office?
The answer is deal flow. They have league table leading IPO activity (25% market share with next closest competitor being 8%, and they have garner more market share for IPOs than the next 4 competitors combined). Everyone gets so hung up on M&A (which they still do really well in) but forget about equity/debt.
The group does have a sweat shop culture, though... I know some people that work there so feel free to PM if you have any questions...
GS is tops here
JPM and Centerview have great reps.
baml is horrible
Isn't JPM C&R in Dallas?
No, they are in new york but part of the group sits in Dallas. It is not a regional office so much as it is a satellite office. Came to be via a MD's desire to live there.
that sounds awesome. they have been getting good dealflow too.
bump.
On the BB side, Goldman and JPM are the best banks for consumer, and Barclays is the best for retail (they have a dedicated retail group that is seperate from their consumer group, which is mediocre at best). However, Centerview is better than all the above; their two founders, Blair Effron and Robert Pruzan are absolutely dominant in the space, have been for many years and are consistently on almost all the top deals. They did Del Monte, RalCorp, all those Pepsi deals; if it's Consumer, you name it, they're probably on it. Very few banks dominate a particular vertical the way Centerview dominates consumer, largely due to Blair and Robert.
Centerview was also one of the sponsors on the Del Monte LBO, so not surprised they were on that deal.
Consumer & Retail IB/PE (Originally Posted: 07/15/2014)
Hi All, currently in IB/M&A starting my second year and looking to lateral to a Consumer & Retail group either at a boutique or BB. What firms are strong in Consumer & Retail? I am familiar with the following firms: Centerview Partners, Financo, Threadstone, Peter J Solomon, Houlihan Lokey. Eventually would like to end up at a PE like Irving Place Capital (7 for All Mankind, Rag & Bone, New York & Company) or Lion Capital (AllSaints, Jimmy Choo, John Varvatos).
Where is a good place to keep track of industry news and the transactions in these sectors? What's a good way of understanding the different types of business models in the sub-sectors?
It would be great to hear what the experience is like on both the sell-side & buy-side. At a Consumer & Retail focused PE, how do you go about evaluating businesses for a potential investment?
Well if you're looking for a pure boutique, Sawaya Segalas is pretty good. There's also North Point Advisors. MM - Houlihan Lokey has a strong consumer, food & retail team. If you want to make PE though, aim for the BBs
Also interested in this.
http://www.wwd.com/business-news/mergers-acquisitions?module=subcat
HL has a strong consumer team - which office would you be looking at? Some interesting deals done there.
HL definitely has a strong consumer team, any idea what the people split is between New York and Chicago?
Came across this:
25 Most Influential Kingmakers in Consumer & Retailer Companies, #7 - Jay Novak, Houlihan Lokey
http://www.forbes.com/sites/ryancaldbeck/2013/10/29/consumer-kingmakers…
This is interesting, did you find any more info OP?
Agree w/ TheBlueCheese, Sawaya Segalas is pretty good. I know an Associate over there who worked on a deal in household products (Method Soap) - they've also done some pharma deals too. Pretty active, good deal flow. I know Lion Capital, one of the senior execs over there is an avid art collector. From what I know about the firm, they seem to hire people with international backgrounds (banks/schools in Europe). Looks like a cool place to work for though.
What are the size of transactions Sawaya Segalas focuses on (in terms of revenue.)? Any idea how many employees in the NY office?
Also, would be great to hear if you know what it's like working at Lion Capital, any sourcing here?
Consumer Retail Groups (Originally Posted: 01/07/2013)
Does anyone know who has the strongest Consumer Retail groups right now?
I'm working for a boutique bank that specializes on Consumer Retail after I graduate this May. I was hoping to find out who is the best looking forward.
Also, does anyone have any advice on when would be best to try to break into NY BB jobs? I graduated from Emory and have a lot of reasons to stay in atlanta at the moment, including some family health issues that hopefully will be resolved soon. I really like the firm I'm working for and think I have an opportunity to learn a ton; however, I'd still like to end up at a large firm in New York.
I plan on getting an MBA; however, would it make more sense to try and get into a larger bank after a year or two instead of waiting for business school?
In no particular order: LAZ, GS, Centerview
Credit Suisse is a leader in the consumer retail space
Any specialties at that level? I'll be doing a lot of smaller sports apparel deals.
Credit Suisse is not a leader. JPM is #1 in Consumer. Goldman is #1 in Retail
Top consumer/retail groups (Originally Posted: 01/19/2007)
After GS and Lazard, which BBs are best known for their consumer group?
UBS has a top consumer shop.
Which firms are strong in consumer products / retail practice? (Originally Posted: 03/01/2012)
I'm currently a financial analyst at a F100 retail company and will be going to a M7 bschool in the fall. Very interested in management consulting and hoping to join a firm with a strong consumer/retail group if possible. Which of the MBB firms is the strongest in this category? Are there any other firms (e.g. Deloitte) that also stack up?
Kurt Salmon comes to mind.
Deloitte S&O has the Retail Performance Improvement group. Interested in this topic as well, for non-MBB also.
.
not sure why this firm hasn't been mentioned, ZS Associates. they dominate the retail/consumer products consulting market...
Is'nt ZS more of a Life science/ Pharma focused firm? I haven't heard of them doing any consulting engagement for retail segment - Can you help me understand the basis on which you suggest ZS is strong in Retail?
I don't think ZS dominates anything, let alone a market as vast as retail/consumer.
Thanks for all the comments guys! I tried to do some research on Kurt Salmon but couldn't find much outside their website/Vault guide. Do they recruit at most bschools or would I need to reach out to them?
Also, when interviewing for MBB, can I be asked to be placed in a specific group? Or is everyone a generalist?
You will come in as a generalist - full stop.
From hearing about interviews we've done with lateral candidates, Kurt Salmon might not be doing so well right now...only one data point, but just a thought.
Also, one of the top 5 five reasons I chose my firm and office combination was consumer/retail strength. So make sure that if this is your #1 interest, find offices where lots of this kind of work is done. Just makes staffing a lot easier.
Consumer & Retail Groups (Originally Posted: 02/19/2013)
I have seen a couple of similar threads but they are all dated.
Which are the best Consumer & Retail groups for deal flow and exit ops? I've heard GS and JPM are strong.
How does this group industry group generally place vs. others?
Solid groups exist at GS/JP/Barc/BAML/C
haven't heard much about any other BB
does this mean that Guggenheim consumer/retail arm will be a top contender now that they got these ex-barcap heads of global retail and other MDs?
http://www.foxbusiness.com/news/2013/04/30/street-moves-Guggenheim-partners-adds-five-senior-bankers-from-Barclays/
MS is at the top right now for C&R
Centerview consumer retail is pretty sweet. Heinz.
C isn't so strong in consumers anymore. They used to be a powerhouse in C&R, but all the talent jumped ship to MS during the crisis. Currently have a friend working at MS C&R--good deal flow and culture, lot of senior ex-Citi guys.
Edited to add: Believe MS C&R has also placed a couple of people into KKR in recent memory.
This
PJ Solo
Centerview is by far the strongest of the boutiques for C & R
MS CRG placed people into TPG, CD&R, and SAC in recent years as well
I was talking to an associate at BAML the other day and he said they are far and away the best at C&R, said he interviewed at almost all the BB during his MBA and that was his #1 choice. Definitely anecdotal and I have no idea if thats true, just what I was told.
Take a look at how many associates left BAML C&R within a year.
http://dealbreaker.com/2013/05/quitting-watch-13-bank-of-america/
Top 5 Consumer/Retail Group (Originally Posted: 01/22/2007)
Does anyone know what the top 5 consumer/retail groups are? I know that Goldman, UBS and Lehman are top 3, but what's 4 and 5? Merrill? JPM?
left UBS started his own firm that smokes wall street like camels
Consumer & Retail Coverage Groups (Originally Posted: 12/20/2011)
What firms have the best Consumer & Retail groups? And, how can one go about differentiating themselves to get a summer analyst position in the Consumer group?
Interested to hear more about this.
I don't know a lot about this, but from what I have heard the top groups are Citi, CS and GS.
And about how to differentiate... I don't know... maybe show some knowledge about the most important deals of lately, the ones that are going on or rumoured? Trading comps for the sector? Trends affecting the performance of the competitors in the space (recession, commodities, etc...)?
Centerview
Consumer and Retail groups/dealflow after recession (Originally Posted: 09/21/2010)
Anybody have any thoughts/data on what has been going on in the C&R space since the meltdown? I've read a few things about activity picking up but I'm curious to see what you guys think and if you have any good news stories about the industry. Have there been any significant deals done in the last few months? Currently in undergrad so I'm reaching out to anyone in the industry for some knowledge. thanks
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