Queries Reg ECM Summer Internship
Hi all,
I know that summer internships have been thoroughly discussed in the forum, but I had a few specific questions regarding an upcoming summer stint in the ECM dept in Hong Kong:
1.) From what I could gather, ECM is more involved in execution of equity deals rather than origination (which is usually handled by coverage teams), so I'm guessing that PowerPoint skills would be more handy than Excel modelling (sine ECM guys don't do much modelling to begin with). Am I right in this assumption? I need to start working towards developing adequate competency in these softwares since I don't use them all that much in law school, so knowing where to focus my efforts would be helpful.
2.) Also, which databases do you personally recommend for company/industry sector research? (I've previously used Datamonitor, Euromonitor and ThomsonOne Banker). Am not proficient at Bloomberg, but I'm hoping that this will be covered during the initial training.
Any other info anyone would like to share regarding ECM internships will also be immensely appreciated. Thanks.
As an intern (on the analyst level), your bread and butter will be market updates... You definitely need some rudimentary Excel skills for that :).
What you refer to as "origination" is difficult to isolate: coverage teams and ECM often work together on deals. The primary contact is the relationship banker.
Expect of course many pitches, but also e.g. convertible bond pricings.
Don´t worry on developing your software competency: you can learn that quickly and your legal background will come in handy on the job.
There are banks where the origination is done by ECM and some by the coverage team. For e.g, I did an ECM internship in the ECM origination team. Within the same bank there were an execution/structuring team + an equity syndication team + an equity linked team (structuring of CB). All these four were parts of the ECM team. However, ECM Bankers in the origination team were the ones who did the pitching (excel modeling for accretion/ dilution or things like valuation mostly through multiples), and they were the ones who went to visit the clients (with the senior bankers) and they also followed the whole process when they got a mandate. So being in the origination team (where analysts and interns are)I was able to go through everything from mere pitching of stuffs that would go nowhere to the delivery of shares in executions.
But in other banks I don't know, things seem to be different and the ECM bankers seem to do the execution parts only (which I don't find exciting if you didn't struggle before to get the mandate).
My understanding is that coverage teams / product teams like "corporate finance" will advice the client on the correct capital raise / strategy etc, do modelling for them. The ECM guys come in at the "sales" stage as they have all the relationship with the big funds / institutional investors, they know what works and what doesn't in the markets ("market updates") and organise roadshows / legal stuff. So I think more time spent on powerpoint.
Keep us updated when you start with your internship though!
Ok beatallica, if I take your definition of ECM, then in the bank I worked with, the equivalent was the equity syndication. They were the ones in contact with the funds, they dealt with the book of orders and how to divide the shares among investors, they were the ones who sent market updates every monday, organizing roadshows etc. So basically was my internship an ECM one ? It was according to the name of the department but in fact it seems it was more coverage / product teams' job and more about advising the client on what you said.
Then maybe I should mention that in my CV to make things clear if I apply to coverage / product teams....
Thanks for all the clarifications. The structure of the bank I'm going to work at is similar to the one described by scratchy; there's a corporate finance team which (I think) does most of the heavy-duty modelling and then groups like ECM which should be more involved in execution. The work sounds pretty straightforward though (if it's mostly just going to be updating slides/ excel sheets with recent market information). Thanks again.
guys it really depends on the bank and on the country. Some ECM teams (particularly in smaller countries) tend to do pretty much "everything", e.g. the modelling stuff and there they also have syndicate tasks. It´s not that in all countries you will be involved in 15 IPOs a week.
I don´t know where you´re interning so if it´s a small place, you might get a little bit of everything.
However in BBs in big markets, tasks will be more separated with more distinct functions.
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