Investment Banking in Houston?
Hello, I'm currently a sophomore at a top 30 business school studying Finance. I plan to graduate college with at least a 3.8 GPA. Before I graduate I plan to have an internship this year at a small financial firm and to be a summer analyst intern for Summer 2018 (hopefully in Houston). Anyways, I just have a few questions:
Is it difficult getting a job in investment banking in Houston?
How likely would I be able to become an IB analyst in Houston?
What are private equity and hedge funds like in Houston?
Are there any smaller, boutique banks that don't work you as many hours as the big, universal banks like JPM, MS, Citi?
Any comments are appreciated. Thank you.
1) Go on linkedin 2) Find people that work in Houston as investment bankers 3) Type up this exact message and ask to speak to them (maybe omit the PE / hedge fund part) 4) Talk to them 5) Reap the benefits of networking and maybe land an internship in the process
You're welcome.
I really feel stupid now. To be honest, I wasn't even thinking about this at all. And it seems pretty obvious. Thank you for the advice!
Don't type this exact message. It's a lot easier for them to just type a quick response than get on the phone, so you need to hold the questions back. Just include your name, your school, your interest in houston, and a request to get on the phone in the next couple weeks to chat about their experiences.
Steps 1, 2, 4, and 5 are spot on though.
P.S. - be careful about sounding worried about hours.
1) It's about the same as other cities. Not easy, not impossible. 2) No one can tell you your odds. If you have a 3.8+, have prior internship experience, are sociable, know the basic technicals, can convince them you want to be in Houston/have an interest in O&G, you have a decent shot. 3) Quite a few energy PE shops. Very few HFs. 4) There are a number of non-BB banks where hours might be slightly better than places like Citi. TPH, Simmons, PPHB for example.
TPH definitely does not have better hours than any BB. Probably worse for analysts. They have a good rep for culture but that doesn't translate to hours. Simmons is the only legit place that has a good rep for hours. I don't know wtf PPHB really does but they are a few notches down on the prestige chain.
Yep agree with this. Petrie and Evercore have brutal hours. Simmons is probably better than most BBs but it's still banking and you'll still work a lot
So TPH doesn't give less hours than the BBs, but they have a much better company culture that doesn't treat their analysts like shit?
Plenty of boutiques here. I know a few people at WFC, and they work a good amount, but have the usual protected holidays. DB energy is down here as well and had a good group (not sure about how they are after the recent months).
Obviously energy down here is king. Brush up on upstream, downstream, midstream, OFS, E&P accounting, etc. You don't need to know it all, but if you can speak intelligently about an area, or express an area of interest then that's ideal. There are also several Corporate Banking groups down here. If you don't get a lot traction with IBD you could pivot there and hopefully move over to IBD down the road.
Almost every PE shop down here is energy focused. Very difficult to find a PE shop that isn't energy, but not impossible. Dallas is more general shops. Gulfstar here in down is a good shop, but they do smaller deals, but have a good deal flow.
Slightly outdated thread but thought it would make sense to weigh-in given the timing of SA recruiting for Houston/Energy banks. Can say that as far as I’m aware that there is a good pipeline for buy-side recruiting at the BBs but seems like deal flow is somewhat limited, i.e. you will need to perform well and get slightly lucky to have a chance at getting staffed on the more meaningful deals as capital markets activity seems to have slowed. Still see the typical names (Barc, Citi, CS, GS, MS) getting on some large transactions but most of those have occurred outside of the upstream space recently besides a few large intl deals and the pending EQT deal. Also will let others confirm but I feel like most of those are run out of the respective NYC offices. No idea what things are like at DB/WF/UBS recently.
The top boutiques seem to still be getting a ton of work. Jefferies has dominated upstream A&D but hours are probably close to, if not the worst, that you will find in banking. EVR and TPH also still seem to be going strong. Agree with above replies and seems like Petrie hours/culture is similar to Jefferies but with more of a twist towards corp M&A work. Intrepid worked on some very large deals earlier this year and seem to still be active on the hiring front. Simmons is still a great place spot, especially if you are thinking about trying to stay in banking and not being miserable doing it.
How is the Fall in Oil Impacting Houston IB Hiring? (Originally Posted: 01/15/2015)
Curious if the last couple months fall in oil is impacting the IB industry down in Houston, specifically hiring for associate and analyst positions? Does anyone have any insight? Thanks.
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I'm headed to a BB there this year for FT and haven't heard of any changes to hiring expectations. The guys a year behind me have gotten a lot of offers for SA (~20% jump in summer hiring from a year earlier).
I think it's too early to tell how oil prices will affect recruiting. But I'd def. be interested in hearing the latest.
Probably depends if you will be working on upstream, midstream or downstream deals. Upstream is the most volatile and most affected by swings in oil prices.
Everything I've been hearing is that the current market conditions aren't going to affect hiring whatsoever. There are obviously people who think otherwise, by the far and away the general consensus is that hiring won't be affecting, and worse case scenario is that comp will be down slightly in 2015 vs 2014 (though 2014 was exceptional for most banks, so it would have been hard to replicate no matter what). A few reasons behind this sentiment:
1.) There was already a general lack of talent in Houston IB, especially in the Senior Associate through mid-level VP range, and that gap still needs to be addressed. 2.) While Q1 and Q2 may be slow in terms of capital markets, there is still going to be significant activity. Specifically, there will be alot of restructuring deals happening the first half of the year. Similarly, companies that levered up to buy assets when oil was $100 a barrel are going to drive some fire sales in the short term, so those that have cash on hand will likely acquire some of those assets. That said, most firms that are in a pinch will try to get rid of second-tier assets first, so this may hinder M&A&D activity a bit in the short term. Companies are trying to hold on to their best assets for as long as possible, but if prices stay low, some operators will be forced to dump assets, or consolidate. 3.) Once prices stabilize a bit and companies have a better sense of what they're working with, you'll see an influx in M&A&D activity. And this could be pretty significant. I think we'll see some pretty interesting deals in the second half of the year (or whenever prices stabilize).
All that to say, a lot of companies are over-leveraged, and that is going to drive activity.
At least so far, I've heard nothing in the way of a slow in hiring. In particular, I know EVR is set to bring in their largest analyst and MBA-hire associate classes this summer, and Jefferies is increasing the number of analysts they're going to bring on this summer as well. They have historically never done MBA recruiting, but I'm hearing that that might change this year. Speaking of Jefferies, I do know they paid extremely well this year, but the message for 2015 is that comp is likely going to be down from what they got this year.
To summarize: There will be activity no matter the commodity price, so banks still need bodies to execute on deals, but the fees will likely be smaller, and thus comp will probably be down. Again, there are outliers on either side of this. Some people think it will be just as good of a year, and some people think the sky is falling, but by an large people don't expect to see a significant decrease in hiring.
That's my two cents, at least. Interested to see if anyone is hearing different.
@JBB44 , What do you mean by lack of talent?
@"JBB44"
Did Houston BB's bump Associate base pay then?
Of course we have seen the mega thread on Analyst pay going from ~70k to 85k. I was wondering what's the case with Associates?
Yes - I have heard that at least a few have increased associate base salaries. Not sure on the exact figures, though I should be able to track this down over the next couple of weeks. I know that BAML, MS, and GS have already done so, or are planning on increasing bases this quarter at each associate level. I know Citi is talking about it as well, but not sure the verdict there. WF is for sure increasing their analyst pay, but unsure of their plans, if any, at the associate level. Not sure about CS or Barcap, UBS, or DB, but should be able to find out in the next couple of weeks. RBC and BMO have already told their guys they aren't increasing bases. Scotia isn't changing either, but they have always had abnormally lower base salaries at every level. No insight into the boutiques, but will try to track this down as well.
Upstream - getting the oil and gas out of the ground Midstream - moving it somewhere else Downstream - refining it into usable products, distribution
EVR has bumped its base which would make it the highest on the street i think
EVR has bumped its base which would make it the highest on the street i think
Most Houston BB's and some of the others offered $125k to their incoming 2015 summer associates (interviews just wrapped up this past Friday). Elite boutiques offered a bit more usually (e.g., I heard $135k for one of them). Not sure what the elite energy boutiques offered (TPH/Simmons).
A MS summer associate last year got a full time offer for this summer of 135 + 40 . He was a petroleum engineer though so maybe they thought he was worth it a little more.
thanks everyone. sounds like big picture nothing is happening yet.
@JBB44 highlights a lot of solid points here. There is definitely a talent glut at the Sr. Associate/VP level because of the large scale layoffs in 2008-2009.
In an ideal world, you want the market to up-tick during your promotion years and you want recessions during your more junior years to open up more space for you later. (As usual do the opposite, so in year 1.5 when you're established, you should welcome a recession because you should be performing to a point where people above you are first in line to get chopped. If a 2nd year associate has top marks they are just going to layoff the third year with "ok" marks. It doesn't hurt you because you were not up for promotion that year anyway! Yes this an ugly way to think about it but it is reality, you want room for you to continue up the pole until you generate real revenue for the firm)
For energy, large scale layoffs have not occurred at this time. If the space dries up for more than ~9 months then you could see some downsizing. The issue is that investment banking has a long long long sales cycle 12 months or so (nature of the beast) so banks over-hire then over-fire.
Be smart and choose the banks with the best deal makers so your position won't go away. Joining an energy team (or any team for that matter) where the bankers are not top tier can set you up for layoffs quickly. Ie: banks that have mediocre performers that did well simpy because the market was hot.
Can't imagine the fall of oil prices will effect Houston IB hiring practices. The price won't stay this low forever. Either way, my expectation is that the oil industry will start to see some consolidation as some of the smaller fish fail to keep up production in this environment. That being the case, whoever is snapping up the little guys will need the services of your friends in Texas.
Bottom line: I wouldn't be too worried
Is anyone still recruiting for SA BB in Houston for 2015?
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This will probably will be a period of increased M&A as the industry turns towards further consolidation and synergy-seeking ( I keep hearing this over and over again from people who know the energy industry far better than I). Also good for restructuring/distressed as the smaller players scramble and fail and get bought up for pennies on the dollar.
Distressed/restructuring opportunities. Equity and credit slow down.
LevFin?!? Already over-levered, under-hedged in the current price environment.
lol @ staying in banking past associate lvl - energy fund or PE or nothing
Non-Energy IB's in Houston? (Originally Posted: 07/21/2016)
Hey all,
I am a rising senior, currently working in PE in the Dallas/Fort Worth area, planning on going into investment banking. Would ideally like to be in Houston but no shot I go into energy.
Are there any IB's in Houston that are diversified and recruit analysts for non-energy groups?
Thanks
I think Lazard does some non-energy stuff but I'd advise against working there for a number of reasons. I think Gulfstar is generalist as well. Pretty much everyone else is 100% energy focused though
What's wrong with Lazard?
What would your reasons be for not going to Houston?
I originally wanted to go to NY, interviewed with Goldman and Citi up there last year for summer internships but no luck there. Ended up in PE in Dallas this summer.
My thought process is just that if I can make the same $125k salary in Hou/Dal/Chi/NY id prefer it to be Houston or Dallas since cost of living is so much cheaper.
Go frogs.
Lazard and GulfStar do some non-energy stuff. Dallas has JPM MM and MHT Midspan.
I think I've heard that RBC has a small P&U team in Houston but being so tiny they may not go through normal recruitment channels (or maybe they do?).
don't discount HL in Dallas either - they have OFS, Consumer, and HC
Axial has list of Texas Banks http://www.axial.net/companies/texas-investment-banks/1/
Pretty sure Houlihan Lokey has Healthcare M&A in Dallas.
HL has a decent sized team here, 30-40 guys I think. They did take interns this summer so definitely somewhere ill be looking into considering my PE group is healthcare focused. Deloitte has a good sized team here in dallas too.
When does recruiting kick-off this fall?
Help needed. Houston IB (Originally Posted: 07/14/2017)
Hello all, I am an international student. I finished my MBA from a non target business school with good GPA. I am currently working in a retail banking. I am really interested in working for IB. I have applied to almost all entry level investment jobs in Houston but no luck. I don't need H1B sponsorship. I would highly appreciate if anyone can help me with some advice on how to get into IB.
Are you only wanting to work and stay in the Houston area? I would start by broadening your search to other regions for your first job. You can always work your way back to the Houston area later on in your career if that is the city you truly want to be in. The main focus and groups in that region are Oil/Gas and Energy. A friend of mine works for a top MM bank in Houston in the Oil &Gas group. He got the job straight out of school, but he graduated with a degree in petroleum engineering.
If you need help beyond this, feel free to PM me.
Investment banking in Houston career path (Originally Posted: 12/08/2017)
I know the traditional 2+2 mba route that is common path for investment banking in New York to end up on the buy side. I am planning to attend Ut For undergraduate and most will end up in Houston investment banking. I was wondering how is the career path in energy and how the salaries are.
Is the private equity careers same as NY ?Is therr any point trying to end up in New York? Do you need to go back to ut for mba or people usually stay in investment banking in Houston and try to move up? I just wanted know whats a common career path in Houston for mccombs graduates
To answer your questions:
Overall, the real deciding factors on Houston vs NY is if you want to live in Houston, and if you want to specialize in energy. If you're happy living in Houston and doing energy, by all means pursue that, it would definitely be much easier than going after a NY SA gig from UT. If you're interesting in living in NY, you'd probably be best off trying to land a SA gig in NY, however it would probably be a little more difficult from UT.
Houston Headhunters for I-banking (Originally Posted: 11/12/2011)
Was wondering if anyone could give me a few names (HH's) that are big in energy banking in Houston. Used the search function, didn't come up with much.
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