Q&A: Australian IB (+ life, etc.)
All, I have some free time over the next couple of days and I've seen a few posts asking about Australian IB, getting a job in Australia, life in Australia etc. over the last few weeks so thought I'd do a Q&A for anyone interested. Happy to answer questions about Australian IB, life here etc. - basically anything anyone may be curious about. I'll answer what I can and will pull in some other Australians on here if they can answer things I can't. For background, I went to a top target university in Australia, am an incoming analyst at a so called top-tier BB and interned at a smaller bank for my SA. Also did a large portion of my degree in the US so can comfortably chat about the difference between the places in terms of IB etc. IB salaries are significantly higher in Australia than in the US - I don't know much about bonus levels here (only a couple of anecdotal points) but in most cases I'd say they're lower than in the US; comp is probably somewhat comparable after accounting for the exchange rate. Go nuts!
investment banking in Australia
The following are questions and answers provided by Aussie banker @notthehospitalER"
What are the Top IB Schools in Australia?
Targets are what are known as the group of 8 universities - biggest targets are:
- University of Sydney
- University of Melbourne
- University of New South Wales
- Monash university - Melbourne
- University of Queensland
- University of Western Australia
What are some top Australian investment banks?
This may shock some of the "GS or bust" WSOers, but UBS is one of the top banks in Australia by far - alongside GS and Macquarie. GS is dominating league tables this year by a large margin. UBS: Have been number one across most products for the last ~15 years and probably still are. Their undoubted sweet spot is ECM. M&A easily top 2/3 yearly and DCM, research & trading the same. As the OP mentioned their rainmakers are protected by the compensation ring fencing, so this is unlikely to change any time soon. GS: Since they bought out of their JV, GS has been growing their market share pretty substantially year on year and have had a VERY good year in ECM and M&A but still lack any material presence in DCM. They've got a substantial amount of deals in the pipeline which will probably see them at the top of M&A next year. GS are definitely the preeminent takeover defence / sell side guys. Mac: Historically the darlings of Aus IB however their star is fading. Their advisory business is shrinking fast as a percentage of revenue and this is seeing them basically transition into a huge fund manager. Mac has one of, if not the biggest IBD team although their deal flow of late has been on the wane which should suppress bonuses. Big questions as to their relevance going forward given their inability to land deals sourced from overseas.
What is the Size of the Investment Banking Industry in Australia?
IB in Australia is SMALL compared to in the US - a SA class of 10 would be huge at the biggest banks, and most banks have 1-5 interns per office (with main offices in Sydney and Melbourne). A couple of the banks have closer to 10 interns than 1, and some banks (mostly EBs) literally have 1-2 interns across all offices in IB.
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