Sophomore Internship Prepare for LevFin
Hello all,I'm an incoming intern at a levfin group in NY for 2023 and want to gain some valuable experience over the summer in addition to taking online courses. Thoughts on whether a credit analyst internship or finance FP&A internship might be better prep for levfin? Credit Analyst Internship:Large public regional bank, will mostly work with analyzing commercial credit/building financial statements for small private companies as well as working with other divisions of the commercial bankFinancial analyst internship:Public company, will start in financial modeling course and work with finance department on pnl projections and perhaps get experience with live capital markets transactions. Both:Just looking for experience, comp not a factor or brand recognition as they are both nearly the same. Both opportunities guided towards juniors but somehow got offers. Any help or perspective appreciated. ThxOr do a summer gig out in the wilderness.
Just my $0.02 but as someone who’s in Levfin I would say this:
The credit internship imo would prepare you better for LevFin so if you know you want to do LevFin then I would recommend you 100% go with it because even if you may not do much, you will get yourself familiar with debt which will help a lot.
However, if you are not sure if you want to go into LevFin full time or if you do not care for debt too much then perhaps take the FP&A so that you are not siloed by two debt internships
Thanks! Am definetely not interested in FP&A careerwise as its not ib related, but it does have more financial modeling and more structure than the other one.
edit: Also just found out finance internship has seniors who have exited from IB which is a definite plus
No problem. But yeah what I meant is like if you would be interested in trying to lateral / recruit full time for, say an M&A group then maybe FP&A could be attractive since you may look at a bit of modeling and more so looking at a company’s equity side as well.
Would note though that if I’m going off of merely your title of how to prepare for an IB internship then there’s a 90% chance you won’t be modeling as a summer analyst so I wouldn’t worry too much about that aspect in regards to needing prior experience for your IB SA stint.
Therefore credit would offer some valuable skills that you could youse in your SA like merely being able to understand the language of debt that people are speaking around you since finance is full of terminology
Lev fin in terms of pay / hours worked (significantly easier than traditional IB) is great. In terms of learning sure you get to be more knowledgeable about debt structures, covenants, capital analysis but in terms of raw modeling which will be needed for PE / HFs would suggest trying to get into the traditional Ibanking M&A / Coverage. Best of luck.
Thanks. Potentially going into group which does the modeling too.
Edit: You are right a lot of large levfin groups don't model but there are certain groups which still get that modeling experience.
Sorry but this just isn’t true. LevFin teams that actually hold the pen on models get significantly better LBO modeling experience than an M&A team would and hence are better prepared for PE interviews
Yeah, agree with everyone else. Depends on what you're interested in long-term, just from an eye-test of the work experience details. If I were in your position I would go with FP&A as it directly applies to every high-end finance position and wouldn't limit you to debt (which I personally find a snore, but better WL balance is definitely a factor).
FP&A + LevFin looks more marketable than Credit Analyst + LevFin imo, but tbh you're golden either way as you've already secured your 2023 offer.
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