Hey guys, I've been reading threads on the forum about RBC. But still confused about how the bank is viewed, trying to get some objective views on the bank (prestige, ex, pay, etc.) and its future outlook. Thx!
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Anyone can feel free to correct me but RBC is a growing platform with its M&A franchise largely driven by its balance sheet, though the firm makes an actve effort to get a (lead) advisory role on mandates as well. This is in the US - I do not have information regarding its presence in canada.
I believe the Healthcare, C&R, LevFin and M&A groups are solid there. From my understanding pay appears to be street
Thanks! Just wondering how do you feel about the exit opp for RBC (take m&a as an example)? Will the firm probably be considered as bb maybe next 2 or 3 years, considering all the bad news of db?
I would say no, that it will continue to be viewed towards the top end of the MM in the US, alongside Baird, Blair, Lincoln, BMO, etc.
Pay, exit opportunities, hours will be just fine in comparison to the others listed.
Met guys from the Lev Fin and Healthcare group who left for PE or other shops. Solid dudes
It really depends on the group that you're placed in. Tech, Industrials, LevFin and M&A all have at least some exits to respectable middle market private equity shops (obviously not at the level of a BB / EB, but closer to the level of BB / EB exits than other groups at RBC). If you're looking to exit to a larger bank, I would argue that you have the best chances at RBC. Say, for example, that you work at Barclays. You're not at an amazing BB, but you still wouldn't want to exit to, say, Goldman or JPMorgan after a year because the gain in "prestige" is marginal and you would have to restart as a first-year analyst - the bottom of the totem pole all over again. On the flipside, RBC is probably the most highly regarded bank that you can work for (Jefferies may also fall into this category) where there is still considerable benefit to making the lateral move to a better investment bank.
Thanks for your insights!
Why do you have to start with a first-year analyst again if you lateral jump? Seems unreasonable.
Pretty common for laterals to take a year back when moving to a "better" bank (that assumes you're willing to take a hit to work there). There can be a lot of variation between how different banks/groups do things, so there's a lot of ramping up involved. In turn, there are also promotion implications depending on the level you come in at.
Got a chance to meet a bunch of bankers at RBC (including head of couple groups) when I had an offer there. Best groups at RBC for exits: Power & Utilities, M&A, Industrials in no particular order. Tech is good if you want middle market growth equity, but exits to lbo shops are non-existent. Healthcare is on the rise after poaching ex-Jefferies (who were ex-UBS) bankers.
P&U sends top analysts to top infra funds like Macquarie, blackstone, and Morgan Stanley. Senior bankers also get you those interviews.ff
M&A is just starting to get some MM PE exits. Recent/upcoming exits include: Leonard Green, TPG Growth, Warburg Pincus (borderline MF?), and HIG. Obviously they were top analysts from top target schools. Pay is on par /above street for this group.
I would disagree with the post above that they'll continue to be in line with Blair, BMO, Lincoln and Baird. They've been way above BMO, Lincoln and Baird in the M&A market for years. You could make an argument for Blair if you love Chicago, but honestly still wouldn't be comparable. RBC right now is in line with Houlihan Lokey and Jefferies. I also know a bunch of bankers who jumped ship from DB to RBC in recent months, and other students who turned down DB to interview at RBC, so take that for what you will. RBC senior bankers are also very involved in recruiting in order to convince students to choose them over some BBs like DB, Citi, and Barclays. Literally heads of certain groups take the time out to talk to their top candidates after an offer, and it seems to be working.
Also fun fact: Rosenbaum from the investment banking book by Rosenbaum & Pearl is the head of Industrials at RBC.
Also wanted to add this: RBC will most definitely not be a top bank in the next 5-10 years. The best I personally see them going in that time frame is a lower BB at best, below Citi, Barclays, and Credit Suisse. Obviously take those and EBs over RBC, no question about it. My post above was to just say that if you can end up being one of the top analysts (and I mean top 5 analyst out of 70ish class), you will have a good shot at MM PE. The rest? They stay on as 3rd year analysts to Associate promotion or go corporate or some other shit
Thanks!
Warburg Pincus borderline?
RBC is not a BB yet, but a borderline low-tier BB right below UBS and DB.
On another note though, something fishy is going on inside the bank recently. RBC Capital Markets' head of investment banking got fired for having a relationship with a staffer, its head of Compliance left in April, and now the head of healthcare investment banking left the firm. Those are a lot of executives exiting an investment bank in a matter of a month, so feel free to chime in on your theories.
http://business.financialpost.com/news/fp-street/rbcs-u-s-compliance-he…
Where did the head of healthcare go?
Thanks for sharing, but just wondering isn't the head of healthcare group leaving before the head of US ib getting fired? Quite worried about the future outlook of the firm now cuz many executives left.
Hey guys, so another question: RBC vs jefferies vs houlihan lokey, which one is better relatively?
I'd say Houlihan is in a different league because it only has presence on the West Coast and is mainly known for its restructuring business (pretty sure neither RBC nor Jefferies has a restructuring business, but could be wrong about Jefferies). Not necessarily that it's any better than the other two, but I wouldn't say it's really comparable. Choosing between RBC and Jefferies, I would have to go with Jefferies based on exit opps for analysts coming out of Jefferies, though I wouldn't say there's much difference.
Thanks!
Just to add, Jefferies does have a restructuring group, obviously not as prominent as HL
Jefferies definitely has an rx group.
RBC also has a restructuring team. They hired some guys who fled DB about a year ago.
Thanks!...beat him to it
Bump for other thoughts
No comments on RBC in the US, but they're generally regarded as the #1 BB in Canada.
The dealmaker has just left the building...I think nonetheless RBC is great north of the wall and south of the wall
https://www.bloomberg.com/news/articles/2018-06-08/rbc-fired-u-s-invest…
RBC is positioned like a lower-tier bulge bracket bank. They are in all the big bridge loans for high profile M&A deals, they win some large mandates from time to time, but for the most part are a passive bookrunner on cap markets deals. You can get a great experience there and solid exit opportunities, but I would expect a decent amount of buyside M&A work and upper middle market type mandates. Nothing wrong with that, it pays the bills.
Two of my former MDs came from RBC. Both great guys. One of them, at my most recent BB, was one of the best bankers I've worked with in my career so far. Quality guys that do nothing but quality work in my opinion.
I've heard nothing but great things about RBC and the firm itself has a great reputation. Not sure about pay or exit opps, but hopefully this is helpful to give you some context on the firm's reputation.
idk about the firm/culture, but all my friends there who are analysts get PAID - first year top bucket they paid out like 75 and 2nd year 105, which is crazy
Bonus or base?
can confirm with analysts I know in the M&A group there that the bonus for top buckets are insanely high. Two guys who explicitly said they are top-bracket but not the "absolute top-bracket" (guessing that the #1 and #2 analysts get put in an even higher bracket) and they got 75k first year and 105k second year for bonuses
bonus only
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