I was hoping to get some more information on financial sponsors groups and what they actually do. I know it can be really firm dependent, but for the most part all of the discussion here on fsg groups basically is "do they model or not" because most people here only care about LBO PE exit ops, which isn't something I'm interested in.
Other than that, there's no other real information about what sort of work groups like this do. I know within some fsg groups there's hedge fund coverage and private equity coverage. How do these two different areas of work differ?
I'd imagine hedge fund coverage within fsg would mostly be on the credit/activism/new issuance areas, but I really have no idea and would love to learn more.
What are interviews for these types of roles like? Considering there seems to be less of a modeling heavy aspect of these jobs (I know, some model a ton), are interview questions generally less focused on financial statements and more behaviorally/market heavy? What areas should someone interviewing for these roles focus on while preparing?
What banks have the best cultures/hours in fsg? Also which banks in fsg are the sweatiest and have shitty cultures so I can avoid them. To add to this, personally I'm only interested in NY based groups.
Any first hand insight from people who have worked in these groups would greatly appreciated, as someone who's interested recruiting for fsg analyst roles.
Bump
Credit Suisse FSG is the best on the street followed by BAML FSG AND JPM FSG. Each of the three groups are execution focused (analysts model), while other banks like MS FSG, is more relationship based. It operates like LevFin, but sponsor oriented. As an analyst, your job is really no different than any other gig in banking. You build CIMs, LBOs, attend meetings, and pitch to the bank’s internal risk committee. FSG exits are typically oriented towards PE funds or lateraling to other banks and doing FSG or LevFin.
Source: Interned at BAML/CS FSG and have interviewed and received offers from Citi, MS, DB where I exclusively networked with FSG bankers
could you pm me ? I Interviewed with an execution focused group and have one with a more relationship one coming up and I'd love to hear your take on some things.
How does that contrast with a "relationship-oriented" group like like MS?
UBS should be in this discussion. CS / UBS are widely known across the sponsor world for extremely strong execution and are hands down the strongest groups in both banks and the biggest revenue drivers. Also operates exactly like CS sponsors. IMO both of these groups offer some of the best training you can get on wall street.
This ^ Anyone who is active in the sponsor world knows CS and UBS are leading banks in the space. Check league tables for B3 / B trades - they are both consistently top 5.
thanks for sharing
any insight into hours / lifestyle at these groups?
How are you measuring top sponsors groups?
If Blackstone or KKR is running an IPO a portfolio company in the tech industry, why would they would hire CS or BAML as LL, if GS/MS are the ones who have been LL on most of the industry's IPOs? Might be missing something
The natural expectation would be that the banks who are the strongest in industries where sponsors are most active (e.g., industrials, healthcare, technology) would get the bulk of the business from the top names
I believe its because CS / BAML are better suited to deliver on the acquisition financing. If a sponsor wants to engage seeking mostly M&A advisory from the IB, then perhaps they would engage an industry leader in the sector instead.
Because those decisions are made based on relationships not the league tables. The bank that leads the original acquisition financing, they’re in the drivers seat for the IPO or sell-side (assuming they execute)
At ms fsg does all the lbo and credit modeling.
Also very curious- at my bank, FSG MDs are on lots of deals and manage relationships, help on pitches, and help think through potential buyers, but very curious what they do on the junior level.
The only thing I’ve ever seen an FSG analyst do is update buyer slides on pitches, but I imagine there has to be more to their job then just that
what if thats what I want to do (update buyer slides on pitches? hate modeling.
How is Evercore FS?
how is JPM FSG, what is their intern convert rate,
You working w them nowadays lmao?
Are exits from the sponsors groups typically good (into PE specifically)?
Anyone have insights on Barclays / Citi sponsors groups?
It’s always hard answering these coverage questions since some groups don’t do any legwork on a deal outside of relationship management. I’ve seen teams that just do KYC, pitches, and client meetings. Then they hand everything off (modeling, analysis, etc.) to the product team that also manages relationships too.
Revisiting this thread very late and saw this comment. Very good observation regarding "handing off work".
This can happen depending on the organization. I've been in pitches where we (FSG) profile three targets, drop in a cover and a disclaimer slide and have a 30-min. phone call about them. Those are definitely more relationship plays than nitty-gritty M&A work.
I've also personally built out two-to-three scenario models with toggles for a pro rata refinance, institutional debt deal and transformational acquisition ideas, all before even talking to our leveraged finance partners. Those meetings are about going full-bore, showing the sponsor the kind of material we can put together.
There is a fine balance between super detailed, technical pitches and high-level market/company updates. The best FSG bankers do a little of both. Hope this helps.
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