JPM Groups for PE

I've gotten a lot of mixed info on this topic. Obviously M&A is good, but I hear different things about SLF. Clearly a big group at JPM but I hear they don't actually do much of the technical work and that it's weak for PE? How about financial sponsors? What do they do that coverage/M&A doesn't? Apart from M&A (wasn't really into the people / group culture after speaking to several of them), what are the top three JPM groups for big PE recruitment?

 
Best Response

JPM analyst here, I think I can offer a fair assessment:

  1. M&A - Sponsors (tie): Obviously any M&A group will place well. However, contrary to what I've seen at other banks, almost all analysts I've known in Sponsors have moved onto PE for several reasons. 1) They get very good technical exposure. There are no associates or VP's in this group, just MD's and analysts. The analysts effectively serve as plug and play junior resources for all sponsor deals then, and usually run the model. 2) The culture is very friendly towards recruiting, and your MD's will usually give strong recommendations for you (benefits their client relationships to have alumni there, etc.) Very tough group to work in though as you have no "protection" from your staffer, and you're often at the mercy of other groups.

  2. Strong coverage groups (e.g. DI, FIG, TMT): The culture at JPM has historically emphasized coverage groups executing their own deals, not handing them off to M&A. Obviously senior M&A partners get involved, but coverage analysts will usually run the model. The exception would be for the large mega deals (e.g. ATT-TMobile) where M&A takes a greater role.

  3. SLF (LevFin): Strongest LevFin group on the street in terms of the league tables, although might not be the best for traditional PE placement. Analysts in the group likely get less in overall modeling experience relative to the above two groups. However, analysts do get great exposure to the full financing process from term sheets to drafting the marketing materials to the final docs (credit agreements). This skill set definitely lends itself to going onto cap markets roles at MF's or other lev fin investing roles.

 
maddmax101:
JPM analyst here, I think I can offer a fair assessment:
  1. M&A - Sponsors (tie): Obviously any M&A group will place well. However, contrary to what I've seen at other banks, almost all analysts I've known in Sponsors have moved onto PE for several reasons. 1) They get very good technical exposure. There are no associates or VP's in this group, just MD's and analysts. The analysts effectively serve as plug and play junior resources for all sponsor deals then, and usually run the model. 2) The culture is very friendly towards recruiting, and your MD's will usually give strong recommendations for you (benefits their client relationships to have alumni there, etc.) Very tough group to work in though as you have no "protection" from your staffer, and you're often at the mercy of other groups.

  2. Strong coverage groups (e.g. DI, FIG, TMT): The culture at JPM has historically emphasized coverage groups executing their own deals, not handing them off to M&A. Obviously senior M&A partners get involved, but coverage analysts will usually run the model. The exception would be for the large mega deals (e.g. ATT-TMobile) where M&A takes a greater role.

  3. SLF (LevFin): Strongest LevFin group on the street in terms of the league tables, although might not be the best for traditional PE placement. Analysts in the group likely get less in overall modeling experience relative to the above two groups. However, analysts do get great exposure to the full financing process from term sheets to drafting the marketing materials to the final docs (credit agreements). This skill set definitely lends itself to going onto cap markets roles at MF's or other lev fin investing roles.

This is really great insight. How do you feel/what do you know about the LatAm group? Is there a large difference between LatAm M&A and its equity and debt teams?

Thanks!

 

Being an i-bank with a large commercial banking wing their Sponsors group would probably be a good bet for PE. I'm assuming that their m&a group should also have good exit opps.

 

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