Q&A - 1st Year LatAm M&A Analyst in Big 4 Corporate Finance

Hi all,

I haven't posted here in a while but have benefitted tremendously from the insights posted by others. Figured I would contribute to the community by sharing my experience and answering any questions I can.

About me:

-Finishing my 1st year working as an M&A Analyst working and living in in LatAm (Think Peru/Bolivia/Chile/Argentina) for a Big 4 corporate finance team
-Born in a Central American country, moved to the US in elementary school but spoke primarily Spanish at home (Dual Citizen)
-Liberal arts undergrad from semi-target, master's in general business (not an MBA) from semi-target (both semi target b/c MS, GS, JPM, ML recruit actively but are not ivies/top 10)
-Interned in research for a boutique bank in the tri-state area and got a full time offer there but turned it down for an offer to start my career in LatAm because I would have regretted not taking advantage of the opportunity to work abroad in Spanish & English
-Just started a local nonprofit with some friends to teach at-risk youth from underserved & underprivileged constituencies english, public speaking/presentation skills, resume writing and interviewing skills among other things

Please feel free to ask me anything (within reason)!

 

This would probably be better suited for the I-Banking forum, I think you can edit the post and switch the forum that way. If not just repost it in the I-Banking Bullpen.

Sounds like an interesting path, look forward to reading the AMA!

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
 

The dealflow is not like that of an investment bank but the pipeline still provides some interesting opportunities - in my case I've gained exposure to the HVAC, mining, IT and retail industries among others so far (mostly comprising sell-side engagements and a couple buy-side). The dealflow will vary based on location; for instance, our team in Brazil has a minimum of 50 doing m&a while in the andean region some country offices have much less. This is b/c there is more activity in Brazil than the Andean region. We do not underwrite, so a good chunk of the mid-market goes to the I-banks but in general big 4 CF tends to compete in volume of M&A deals globally but of course in value the I-banks dominate.

 

Is it a requirement to speak Spanish to work in a team focusing on that part of the world?

What sort of travel opportunities have you had or do you envisage having in the future? (i.e how many days on the road in the past and future)

Thanks

 
Best Response
GMG:

Is it a requirement to speak Spanish to work in a team focusing on that part of the world?

What sort of travel opportunities have you had or do you envisage having in the future? (i.e how many days on the road in the past and future)

Thanks

Not necessarily, I have come across many foreigners from Europe/US who legit learn the language once they're here. This was the case for several gringo friends of mine here, which was a surprise to me. Due to the scarcity of native english in this market, foreigners are valued - but when in meetings with a local client it can be challenging to communicate effectively and this will hinder your chances of a potential promotion unless it is the case that your technical skills are solid/above average.

I have not travelled as much as I thought I would, as most of our clients are located near the office and I can imagine it will remain this way.

 
jckund:

Could you go through the hiring/interview process?

Generally we recruit at the top local universities. These kids tend to be quite polished, on the upper end of the socioeconomic ladder and have had some global exposure. Travel/study abroad in english by the local kids is valued a lot by the recruiters. LatAm recruiting and hiring is very discriminatory and superficial - it's the norm to incorporate your picture and marital status in your CV. You will also likely be asked about your parent's occupations and their last names as firms consider pedigree/family social status in their hiring processes. (that is only applicable for local candidates, if you are a foreign candidate just send your resume in normally and you will be fine as those things are not the norm in the US). In my particular case, I had graduated from my master's program and could only find internships in the tri state area so I interned and networked for more than a year. Finally I caught a break when I reached out to someone whom ended up passing my resume to the MD whom called me the next day interviewed me on the phone then I proceeded to interview via Skype with another manager and HR to then get the offer letter. It was your typical mix of technical and fit - but it was in english with the MD and purely Spanish with the manager / HR. Thank god I had looked over some accounting/corp fin/valuation materials in Spanish hahah, I strongly suggest you do the same even if it is a quick look just make sure it is in the language of the foreign office you will be applying to.
 
moca8812:
jckund:

Could you go through the hiring/interview process?

\These kids tend to be quite polished, on the upper end of the socioeconomic ladder and have had some global exposure. \.

Didnt know you chaps are the snobby type , well IB historically has been for elite chaps anyways and the fact you mentioned Latam recruiting is superficial and discriminatory confirms this sad fact

 

"Thank god I had looked over some accounting/corp fin/valuation materials in Spanish hahah, I strongly suggest you do the same even if it is a quick look just make sure it is in the language of the foreign office you will be applying to."

This is great advice! I am also bilingual, but I do not have much background in using Spanish for business purposes. Would you be able to direct me to the sources you used to brush up and learn the technical language necessary for successful business communications?

Gracias!

 
jotin:

How has your Latin background help you in the industry? Did it contribute to getting the job offer?

I would say it definitely wasn't a detriment as it helps me interact in a more meaningful way with clients and local counter parties. It's tremendously beneficial but not necessary; what is necessary is the intellectual desire to improve your technical skills in said language. If you want to work in Brazil, take up a class or two in Portuguese and also read the annual reports of listed Brazilian firms as well as financial publications like valor economico; if you want to work in Chile, take a class or 2 in Spanish and do the same read annual reports of listed firms and read the diario financiero. If you know Spanish, reading Portuguese will be easy - the tough part is speaking I think and I am sure the same can be said vice versa. What will get you a job offer is how you pitch yourself and demonstrate the applicable transferrable skills you've hopefully developed in your prior experiences.
 

You're story sounds almost identical to what I plan/hope on doing. The only thing that would stop me is compensation, since the median and average salaries of entry level finance positions in LatAm are way lower than those found in the states.

In your role, is compensation comparable to that of an analyst in the U.S.?

Also, how much of a leg up is it to graduate from a target, as opposed to one of the local universities from the country?

"I'm going to make him an offer he can't refuse."
 
Green_Bananas:

You're story sounds almost identical to what I plan/hope on doing. The only thing that would stop me is compensation, since the median and average salaries of entry level finance positions in LatAm are way lower than those found in the states.

In your role, is compensation comparable to that of an analyst in the U.S.?

Also, how much of a leg up is it to graduate from a target, as opposed to one of the local universities from the country?

What is your plan/what do you hope on doing? Can't compare compensation really as most firms outside the US pay in the local currency at market rates or slightly below if it's a brand name where kids are willing to go just for the brand. However, an Analyst in Peru will enjoy a decent standard of living and would likely be on the upper end of the SES just as an Analyst in the tri state area would be as well. My standard of living is comparable to that of an analyst in the US for sure, if not better. As for universities, US/Global target > US/Global semi-target > US/Global non-target > local university due to the fluency in English and/or another equally valuable language as well as the quality of training. Not to say local university training is lower quality; this is just the general perception I have in terms of prioritizing candidates and based on my dialogue with recruiters focused in the area.
 

I'm a first-generation Hispanic who's currently a rising Sophomore at a target. I'm majoring in Finance and International Business and possibly a minor in Spanish. Also, I hope to hold several internships doing M&A and use that experience to help land a spot overseas as an M&A analyst (much like you). I asked about comp. mainly because I was worried about paying off student loans (~$15k).

One thing I noticed when researching a certain is that given the legal structure, taxes, and underdeveloped capital market, mostly foreign rather than domestic financial institutions are participating in these kinds of deals, which makes finding a job in this space overseas that much more difficult. After your first year, do you see that this still holds true or are domestic institutions starting to get more involved? On a related note, what's your outlook on future M&A activity in LatAm?

And finally, thanks a lot for taking the time to answer these questions. You've been great with your answers and there isn't too much info. here on LatAm.

"I'm going to make him an offer he can't refuse."
 

I'm pretty sure that most Chileans working in IB would disagree with that statement. Getting a job in IB in Chile means you will have to compete with people with very strong backgrounds. (Eg: engineers with high GPA's, students from top Chilean business schools and well connected families which is also really important in a small market like Chile's).

Many foreigners get nice jobs in top IB shops in Chile but it's not easy and locals will be tough competition.

 
Baileyoffski:

I'm actually an intern at a Big 4 firm this summer, and I was curious as to how different the backgrounds of the analysts in corporate finance are in LatAm--are some of the people you worked with from other service lines originally in the firm or did the majority start after grad school like you did and went straight into corporate finance?

Thanks for doing this!

The typical background of a corpfin analyst in big 4 latam is: local/foreign uni, engineering/business for undergrad or master's with ideally at least 1 minimum relevant internship and SOME exposure to English as it tends to be the common thread among most big 4 cf offices in latam or non-english native speaking constituencies given the diverse employee workforce.

 

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