Houlihan Lokey Portfolio Valuation
I've seen a few threads on this in the past but no useful answers. I see a bunch of job postings for the PV team at Houlihan and given im from a semi target who got a late start to the finance world, I dont think I have a good shot at IBD and this seems like a good alternative. From what i've gathered:
- Base is similar to IBD but bonuses are lower (I've heard about 110k all in for first years)
- You'll gain really good modeling experience that should be directly transferable since you are doing equity and debt valuations. You'll also get good experience doing due diligence
- Hours are bad but not as bad as IBD
- Team is growing very fast and HL is the top name in the valuation world
As someone who wants to lateral to IBD and assuming I have good social skills and can network, would this give me a realistic chance? The limiting factor is the that you will not be working on as many pitches since a lot of the work is recurring. Would love any advice on this
I interviewed with them, through a referral. I didn't get a return offer.
Had the same goal as you, and wanted to IBD from here, but I had gotten lucky and skipped this step. Although you are not working on pitch-decks, you will be working on valuation summaries and engagements. Updating and maintaining, kinda similar in nature, the work in valuations is transferable.
If you are still in school, getting into IBD is easy as long as you network, network, network
Hope this helps!
I have an interview for the PV team coming up. Would you mind talking more about your interview, what questions you got, how you answered, and how you wish you would have answered?
Which office are you recruiting for?
Can confirm that the base for 1st year analysts is IB salary prior to the salary bump (~75-85K depending on location). Hours became a lot worse since the pandemic given high turnover (a lot of new hires leave after 2 earnings cycles). The hours are just as bad as IB, which, coupled with the current salary, tight labor market, and management, explains why people are leaving.
Many people I know exited to restructuring, IB, and CD after their two years. A lot of your superiors and colleagues come from Kroll (Duff and Phelps) and other valuation shops - those who wish to make a career out of valuation. Most people I know, they use this experience as a stepping stone to go into high finance. HL is a big name in high finance, which is why some people choose to join their FAS group. But be prepared to be treated/perceived differently from the rest of your colleagues in Corp Fin (HL IB) or RX.
For those of you wondering, internal transfer to RX and IB is rare and you're better off recruiting to a different bank. Although some have succeeded, it's very uncommon and frowned upon. The politics of transferring is just not worth it, even within FAS (i.e. PV to Transaction Opinions). If you are considering joining HL FAS, I would recommend shooting for their TO group, which is more competitive and will allow you to build transferrable skills to other roles in banking.
+1, this is all correct (from someone who left HL PV for banking)
@IBD_intern132
I didn't get all of them correct, but am competent and was progressed to the modeling round which is where I did horrible and was not extended an offer as mentioned.
Adding to my comment form March:
- Accounting questions, like:
Specific line items on the statements.
Questions pertaining to ratios: quick ratio, DIH, DPO, DSO.
- Obviously Valuation questions:
3 methods, how they compare to one another, have I used any in my previous role.
- EV and EQ.V questions:
differences, what are some common metrics.
Honestly, if you have read 400Q thoroughly, you should be fine. They could always throw a wrench in and mess it up for you, depending on the interviewer.
They will not ask about LBO and or accretion/dilution, I wouldn't have lasted if they did. Still don't know how to do it and I am full-time IB. Aside from "tell me about yourself/walk me through your resume", that's all I got from my recollection.
Ask any questions if you need further clarification.
Bit late but what was the modelling round like
Hey man, do you mind providing some info about the modeling test? I have one coming up this week and not sure what to expect. Thank you!
Just accepted the offer for associate position. Interview was fairly behavioural with one hour finance exam. Comp is good.
what office? and whats your start date? Im in the process as well
Newyork/DC
Can people join IB after HL PV? I know a few people who recently left and they didn't have much luck in banking roles. I also haven't heard good things about the culture. Thoughts?
Can't comment on HL but came from another non-Big 4 VAL/TS group. Since you're trying to do IB, it's a good starting spot as you'll get solid valuation and excel reps. You will not be doing "due diligence", but you don't need that "skill". Many folks have successfully done VAL/TAS into IB and PE afterwards. I frankly thinks it's one of the best stepping stones to IB.
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Bump
Can I PM? kinda in the same position (semi target and got a late start) and wanted to see if you have any advice.
Updated comp for first year associate is something like 130k base (30-50%) bonus. It’s basically 70-80 hours at quarter end but much better predictability around your schedule and after quarter end there is a significant dip in hours where people recoup from the busy season.
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