FIG Exit Opps for PE recruiting?

Underdog1995's picture
Rank: Baboon | banana points 155

Hi all,

I recently started at a Middle Market bank working in the FIG group, working on Depositories to be specific. I am interested in recruiting for PE but I know FIG exit opps are very limited as the valuation and modeling is completely different. I would assume that lateraling over to a different group/bank would increase my odds as the valuation would be similar to standard EBITDA based valuation. I think that being in this group will make me a less desirable candidate compared to a TMT or Tech Analyst. What would set me up to have a successful recruiting experience? Any advice would be helpful, thanks!

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Comments (5)

Jan 8, 2019

Bump

Jan 8, 2019

If you're working on depositories I think it'll be a lot more narrower compared to other FIG verticals, such as asset management or FinTech. Not many FIG sponsors really like to do depositories - you just can't get the returns PE LPs are looking for generally.

And you are correct, in general FIG analysts have some more limitations on exit opps than your standard coverage/M&A/FSG analysts, but that varies from bank to bank. I'm sure the GS FIG guys can get interviews at generalists/"standard" industry-focused funds without problem.

Feb 7, 2019

I wouldn't get too tied up in what you're doing now limiting your prospects. It just puts more of the onus on you to familiarize yourself with traditional financial modeling / accounting, understand what the key value drivers are, and to think like an investor.

I'd point to GS FIG group consistently placing very well across the buyside. FIG is generally much more quantitative, so long as you have a good story, put in the prep work, and jump through all the other hoops, I wouldn't think you'd be too hamstrung.

    • 1
Feb 7, 2019

GS FIG is a much different story than middle market FIG focused on depositories - night and day. GS FIG places well because it is arguably the most active M&A group on the street - $66bn BB&T / Suntrust merger announced this morning as one example.

FIG is very quantitative in insurance, specialty finance, but I would argue that depository M&A deals are not highly sophisticated, quantitatively driven processes. PE firms also don't invest in banks largely, as they can only own up to 25% of a commercial banks, so there really isn't much overlap with what other FIG funds are investing in. If you asked me, I would try and get some experience under your belt and try to move to a group that is known for placing into PE if that is what you want to do. I know from people from my uni that MM FIG is an uphill battle, and not an easy one at that.

"Rage, rage against the dying of the light."

Feb 8, 2019