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realjobs realpeople realexperiences
Published by Career FAQs
Australia wide
InvestmentBanking
InvestmentBanking
InvestmentBanking
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InvestmentBankingBy Zilla Efrat
Australia
Published by Career FAQs Pty Ltd
Want more quality career resources from Career FAQs for FREE? Click here
http://www.careerfaqs.com.au/http://www.careerfaqs.com.au/http://www.careerfaqs.com.au/8/12/2019 Career FAQs Investment Banking
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Copyright Career FAQs Pty LtdFirst published in 2005
This book is copyright. Apart from any fair dealing for the purpose of private study,research, criticism or review, as permitted under the Copyright Act 1968, no partof this publication may be reproduced by any process or by any means, electronic,photocopied, recorded or otherwise without prior written permission of thecopyright owner. Inquiries for reproduction should be addressed to the publisher.
Published byCareer FAQs Pty LtdSuite 76, The Hub8997 Jones StreetUltimo NSW 2007www.careerfaqs.com.au
National Library of Australia
Cataloguing-in-Publication entry:Efrat, Zilla.
Investment Banking: Australia.
ISBN 1 921106 16 6
1. Investment banking Vocational guidance Australia. 2. Investment bankers Employment Australia. I. Title. (Series : Career FAQs).
332.6602394
Publisher: Sue StevensAuthor: Zilla Efrat
Editor: Kerrie EyersResearchers: Louisa Veidelis, Amanda EvansDesign: Terri Marzullo, H2M Creative Services; James Manning, Rain AgencyIllustrations: Tim HutchinsonDesktop Publisher: Terri MarzulloProofreading: John Sims, Sims Editing & ProofreadingPrinted by Paragon Printers Australasia
Career FAQs acknowledges the following copyright owners for permission toreproduce their work.
Graduate Careers Council of Australia, www.gradlink.edu.auHudson RecruitmentMichael Page International
Every effort has been made to contact copyright owners and obtain permission.However, should an infringement have occurred, Career FAQs apologises for theomission and requests that the copyright owner make contact.
Disclaimer
The opinions and statements made by people who contributed to this book fromthe investment banking profession are their own and are not those of Career FAQs.The publishers do not claim to represent the entire extent of the investment bankingprofession and career choices. The aim has always been to provide a broad overviewof the possibilities available. As such Career FAQs Investment Bankingdoes notpurport to be a true and accurate record of the investment banking profession, relyingon the voices of those working in the industry to tell their stories. Inaccuracies mayarise as a result of the nature of this book. Users should follow the links to actualwebsites of organisations to ascertain current investment banking practice.
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iii
Foreword
Investment banking has been my life for the last almost 20 years.It has been kind to me, providing a life of enormous variety and
professional excitement.
I have often reflected on how I came to be in investment banking. It
was undoubtedly more by accident than by design. As a commercial
lawyer, I had dealt with many in investment banking and over the
years I drifted towards that field of endeavour.
Whilst I was lucky to find my true milieu by happy accident, I have
always felt that there was need for a publication, and/or course ofseminars, to allow those coming behind me to make a more scientific
choice than I had.
There are so many questions to ask and to have answered; so many
branches, different firms and geographies to consider.
This is why I have agreed to provide the foreword to this publication,
which I believe will provide much needed contemporary information
about corporate finance and investment banking to those who, like
me, have an instinct that this industry may be for them.
I hope that this publication does help and, more importantly, I hope
that if the reader does choose corporate finance and investment
banking, they have the joy, excitement and rewards that I have had
from this industry.
David Gonski, AO
Chairman, Investec Wentworth
Pty LimitedChancellor, University of NewSouth Wales
Chairman, Coca-Cola Amatil
President, Art Gallery of NewSouth Wales Trust
Chairman, National Institute ofDramatic Art
Chairman, Australian Council
Chairman, Sydney GrammarSchool
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Investment Banking
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Contents
About Career FAQs ixHow to use this book xi
The big picture
Why investment banking? 1
What do investment bankers do? 2
Whats happening right now? 5
Current size of the profession 6
What are the job opportunities? 7
Corporate finance and advisory services 10
Structured finance 11
Project finance 11
Trading 11
Equity, fixed income and currency research 11
Sales 12
Derivatives 12Private equity and venture capital 13
Women in investment banking 14
How much can I earn? 15
Performance-based bonuses 16
Who are the main employers? 21
Banks 21
Boutiques and smaller companies 22
Private equity firms and funds 22
Venture capital firms 23
Accounting firms 23
Government 24
The Treasury 24
Reserve Bank of Australia 24
The Australian Prudential Regulation Authority 24
Corporate Australia 24
What are employers looking for? 25
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Investment Banking
Meet some employers 26
Jan Swinhoe Global head of property,
industrials & consumer 27
Mark Thexton Associate director 28
Chania Higgins Graduate recruitment executive 31
What support organisations exist? 33
Main industry bodies 33
Australian Financial Markets Association 33
International Banks and Securities
Association of Australia 33
Finance Sector Union 33Australian Venture Capital Association 34
Australian Bankers Association 34
Accounting and Finance Association of Australia and New
Zealand 34
Securities and Derivatives Industry Association 34
Women in Finance 35
Support organisations for new recruits 35
Financial Management Association of Australia 35
Securities Institute of Australia 35
Insider info
What jobs could I do? 41
What do real people say about their jobs? 42
Damian Motika* Business analyst 42
David Schultz* Private equity analyst, mergers and
acquisitions 44
Brett Ryman Associate, investment banking 46
David Smith Associate director, corporate finance 49
Tamal Saad* Associate director, corporate finance 51
Teresa Ericchello* Senior analyst, corporate finance 53
Duyen Nguyen* Senior manager 55
Isabella Ebbitt Executive, real estate advisory,
corporate finance 56
Anthony Farrace* Manager, boutique investment house 59
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vii
Kevin Gabaldon* Senior executive, boutique
corporate advisory 62
Kara MacCauley* Chief investment officer 64
Phuong Tan* Finance analyst 66
Nadia Gosper* Manager, structured investments 69
David Stanton Healthcare analyst, equities 71
Madeleine Newland* Manager, equity capital markets 73
Angela Capone Credit trader, global markets 75
Itay Tuchman Director, short-term interest rate trading 77
Tim Waggett Vice president, sales 79
Langer Sieben* Manager, development of financial products 82
Mark Murray Senior analyst, financial risk 84
Larya Meyrick* Senior analyst 87
Suzannah Faulkes* Senior analyst 89
Mark Williams Associate director, So Paulo, Brazil 92
Ready, set, go for it!
What qualifications do I need? 101
University courses 101
Do I need postgraduate qualifications? 104
Masters of Business Administration 104
Securities Institute 107
What are the entry requirements? 108
Can I study by distance? 108
How much does it cost? 108
Will employers pay course expenses? 108Industry-based courses 109
How do I get that job? 110
How are people recruited? 110
Graduate programs 110
Vacation programs 113
Advertised positions 114
Recruitment agencies 114
Headhunting 115
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Government recruitment 115
Networking 116
Stand out from the crowd 117Create an outstanding application 118
The rsum 119
Tips: Rsum writing 121
The cover letter 123
Tips: The cover letter 124
Selection criteria 125
Tips: Selection criteria 127
How can I stand out at the interview? 128
Preparing for the interview 128
Making a good first impression 131
Making an impact at the interview 132
Tips: The interview 133
Dealing with disappointment 137
What can I do right now? 138
Buzz words 141
Appendix 1 147
Comparative starting salaries of various professions 147
Appendix 2 148
Sample job advertisements 148
Appendix 3 150
Sample rsum 150
Appendix 4 152
Sample cover letter 152Appendix 5 153
Different types of interviews 153
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ix
About Career FAQs
Want to choose your ideal career but dontknow where to start?Will Santow, Managing Director, Career FAQs
Career FAQs publishes a diverse range of career books that focus on
different professions, industries and lifestyles to make the search for
your perfect career that much easier.
Each book profiles real people doing
real jobs and talking about their real
experiences the good and the bad
from the day-to-day routine of working
life through to the more dynamic
aspects of a job. In addition to this,
Career FAQs books feature practical
information about qualification requirements, the key educational
and training institutions, industry bodies and support organisations,
earning capacity and job-hunting tips.
With all of the above covered in each book, it is easy to see why
Career FAQs provides a dynamic new approach to finding the
right career.
Career FAQs was conceived in 2004 as a result of my own quest
to settle on a particular career path through my 20s and early
30s. At times of career angst or just indecision about where I
should go for my next move, I would try to get my hands on
empowering, high-quality, up-to-date career information that
related specifically to the market in which I wanted to work. Icould find nothing. When I asked around, the only thing I found
was a shared frustration amongst many of my contemporaries.
The Career FAQs books will address this critical information and
educational gap and so reduce the future mismatches between
careerlifestyle aspirations and careerlifestyle realities.
Dont end up insomeone elses life,
a career choice is as
much a life choice as a
vocational decision.
Career FAQs
real jobs
real people
real experiences
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Investment Banking
The range of Career FAQs titles is constantly expanding as we
continue to talk to people who have carved out interesting and
dynamic careers and to hear their stories in their own words.
For a list of current titles, please visit our website,
www.careerfaqs.com.au.
Best of luck with finding the right career for you!
Will Santow
Managing Director
Career FAQs
Thank you!
A special thanks from the team at Career FAQs to the many
people who have contributed their time and shared their
experiences and insights to help make this book possible.
It is always inspirational to find people who are willing
to give of themselves, particularly their time a scarce
commodity for most people today to help make a
difference to others.
That you all gave so willingly and provided such compelling
insights into your working lives so that others can make
better informed career choices is truly appreciated.
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Investment Banking
provides additional information or an interesting
fact and provides directions to relevant appendixes
is used as a margin note to help clarify the
meaning of a word (in boldtypeface) within text
also defined in buzz words.
are jobs in the industry or profession that, at the
time of writing, are in demand
is a short profile of a specific job, with
characteristics such as salary, qualifications,
number of hours worked, the ability to balance
personal and work commitments and the flexibility
afforded by the employer
explodes popular myths surrounding a particular
career choice
is a day-by-day overview of the typical work-
specific activities required of an individual in a
particular job
jobs that have an unconventional, interesting
or out of the ordinary focus
tells the story of real experiences of people
working in the industry
highlight some of the issues associated with a
particular career such as difficulties or obstacles
that you might face in the featured industry
glossary
tradeoffs
myweek
briefin
q&a
fyi
fa
ct
MYTH
hotjobs
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1
The big pictureThe big pictureWhy investment banking?
Do you want to earn big bucks and work on deals that are making
the prominent headlines in the financial press? Do you want to
develop innovative ways to grow Aussie businesses and structure
the deals that keep oiling the cogs of our economy? Perhaps a
career in investment banking is for you. Investment banking involves
working at the more sophisticated end of the finance sector. It can
be intellectually stimulating, challenging and fast-paced, and it can
provide you with great opportunities to work overseas.
In recent times, the high earning power of investment bankershas caught the medias attention. For example, Macquarie Bank,
nicknamed the Millionaires Factory in the press, recently had to
fend off criticism of the $10 million-plus pay packets handed to its top
executives. Of course, the majority of investment bankers wont earn
this much, or anywhere close, but its still a high-paying environment.
But, with high rewards come high demands. You can expect to
work long hours and to endure lifestyle challenges. Youll be under
pressure to get things done quickly. You could face many moments
of frustration where you are stretched too thin and then moments ofexhilaration when a plan does come together.
Want more quality career resourcesfrom Career FAQs for FREE? Click here
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2
Investment Banking
What do investment bankers do?
They say that money makes the world go round. And, if it does,
investment bankers help direct and facilitate its flow. Generally
speaking, investment bankers provide a wide range of financial
services to clients, who typically include companies, financial
institutions, governments, institutional investors and individuals.
Investment bankers make a massive contribution to the Australian
economy by promoting savings and investment, and through their
activities they help allocate the countrys resources more efficiently.
They structure deals that will help companies grow in the future
or that will get infrastructure such as roads or airports built where
theyre needed. They also create vehicles to help individuals growtheir wealth.
Investment bankers may perform the following tasks:
restructure companies
buy and sell companies
raise debt and equity capital
prepare client pitch materials
help clients list on the stock exchange
deal in shares or bonds
analyse the prospects of listed companies
conduct financial analysis build financial models, write
information memorandums
oversee project management to ensure clients objectives are
obtained
draft presentations, board papers and various shareholder documents
customer calling, preparation and presentation of proposals, drive
sales revenue targets, lead specific sales initiatives
represent business externally
review companies their regulatory requirements, history of current
operations and assess whether a change in regulation is warranted.
fac
t
MYTHat the age of 25 one
can become the nextRupert Murdoch or
Gordon Gekko (from
the 1987 movie
Wall Street)
Not everyone will reachthis league, but hardwork is the way peoplerise through the ranksto get to a positionwhere they can influence
the future of big andimportant companies.
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3
The big picture
What skills and characteristics does it take to be a successful investment
banker? To find out, we went straight to the source investment bankers
themselves. Here is a compilation of what they said.
entrepreneurial
people skills team player, ability to network, relationship builder
good time management ability to work smart and delegate tasks
highly ambitious driven to succeed, aggressive,A-typepersonality
energetic
commercially minded
thick-skinned calm under pressure, stress-resistant, resilient
motivated/self-starter
logical thinker analytical, able to reason, objective
confident
quick-thinking
organised
focused
individual thinker/creative thinker/dynamic
attention to detail
good listener
hard-working
has emotional intelligence
prepared to sacrifice personal time
strong numerical skills
strong communication skills
integrity.
glossary
A-typemeans:
a hard-working, ambitious
person preoccupied with
schedules and the speed
of their performance,
as opposed to B-type
personalities, that are more
creative, imaginative andphilosophical
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Investment Banking
tradeoffs
As in any profession there are some drawbacks for those working
in investment banking. Many of the people interviewed commentedon the long hours, the stress, or the competitive nature of the job.
Downsides described include:
excessively long hours 24/7 is standard during high-pressure times
frequent overtime and weekend work
very little spare time and commitments outside of work are difficult
not unusual for young people in their early 20s to burn out
work on average around 12 hours a day
hard work, challenging expectations, tight deadlines
uncertainty of the market, fickle nature of the finance industry,
frequent and unexpected legislative changes
ultra-high stress levels and ultra-competitive results-driven
work environment
Investment bankers work in many different capacities. The following
illustration shows a range of jobs that people work in though this, by
no means, covers all the possibilities.
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The big picture
Whats happening right now?
The demand for graduate recruits is affected by many factors, including: macro factors such as the business cycle, economic conditions and
business forecasts
the level of regulation for example, increased regulation may
prompt a greater demand for professionals in the compliance function
competition with other banks
consolidationin the industry as a result of bank mergers
and takeovers
global staff movements.
The Finance Sector Unions Angela Jolic notes that the past decade has
seen the finance industry go through incredible changes. The bigger
companies in the industry have reduced their staff numbers. At the
same time, there is now a rising number of smaller companies growing
their businesses and taking over some of the functions the larger
companies had. A lot of jobs that were plentiful have disappeared,
while other positions have experienced a boom.
Allan Ritchie, the investment banking consultant at Hudson Recruitment,notes that the Asian Crisis in 1998 spread swiftly across the AsiaPacific,
affecting currencies, interest rates and other markets. This was followed
by trouble in other emerging markets, from Latin America and into
Russia. Trading volumes fell as investors took their money out of the
markets. Mergers and Acquisitions (M&A) activity also slowed.
It was an ugly time. I was working as an investment banker
in London at the time where about 20 per cent of the people
working in investment banking lost their jobs and that affected
other ancillary businesses.
Allan Ritchie, Hudson Recruitment
In 1999, conditions in the investment banking industry began to
improve on the back of the tech boom and investment banks started
hiring new analysts again. But a few years later came the bursting of
the technology bubble, September 11, SARS, and war being declared
on Iraq. Again, job prospects turned gloomy.
Prospects are currently rosy, but like other industries, investment
banks are influenced by economic conditions and how these affect theperception of their clients and their investment appetites.
glossary
Consolidationmeans:
private equity investment
strategy that involvesmerging several small fi rms
together and exploiting
economies of scale or
scope.
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Investment Banking
Some market setbacks, such the collapse of Enron and HIH, and
the National Australia Bank trading scandal, have created new jobs
in merchant banking, especially in the area of compliance and risk
management, as the regulators step in to try to prevent any
future shocks.
Current size of the profession
According to the Reserve Bank, the total assets of investment banks
operating in Australia topped $73.4 billion in January 2005.
By May 2004, there were 53 authorised banks in Australia, 39 of
which were foreign-owned. Some are full service banks while others
are specialists focusing on niche markets. Many of the foreign banks
entered the market after it was deregulated over 15 years ago,
creating a highly competitive playing field.
The International Banks and Securities Association of Australia
(IBSA) estimates that there are about 25 000 Australians employed
in investment banking. Most of these jobs are concentrated in Sydney
and Melbourne. Sydney, however, dominates. It has developed as the
financial capital of Australia in recent years and has attracted most of
the foreign-owned banks.
Many global banks also export financial services by servicing regional
and global operations from Australia. Some examples include:
Citigroup AsiaPacific processing hub for foreign exchange,
employing 85 staff
Deutsche Bank global operational, information technology and
support services, employing 135 staff
JPMorgan Chase AsiaPacific institutional equities and
futures/options operations, and human resources, accounting,procurement and compliance support, employing 135 staff;
custodial services in Adelaide, South Australia, with 165 staff
Morgan Stanley global foreign exchange, AsiaPacific accounting,
structured products, equity operations and human resources
support, employing 80 staff
UBS global information technology call centre in St Leonards,
New South Wales, employing over 120 staff.
One niche branch of investment banking is venture capital. AccordingtoAustralian Venture Capital Journaleditor Victor Bivell, there were
In 2001, HIH Insurance Group
went into liquidation and itis currently the subject of a
Royal Commission. For more
information see:
www.hihroyalcom.gov.au
fyi
glossary
Risk managementmeans:
being able to manage
different risks and anticipate a
wide range of circumstances
that have to be managed
and having procedures and
systems in place to manage
circumstances as they arise
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been fairly stable over the past few years. New graduates make up
about five per cent of the IBSA member workforce.
IBSA adds that there are growing opportunities for recruits in a rangeof new products such as securitisation and in expanding areas
such as funds management.
Other areas where there is currently growing demand for staff include
finance and accounting, as well as compliance. The compliance demand
is driven by rising regulation of the banking sector following some high-
profile corporate collapses in recent years in Australia and overseas.
International developments like BASEL IIand Sarbanes-Oxley have
boosted the need for investment bank staff. There are also new global
standards for the prevention of money laundering and the need for localoperations to comply with their parent company policies. However, the
positions created by these developments generally require industry
experience and would not be suitable for new entrants into the industry.
Historically, there has always been a significant demand at the
18 month to three years experience level in most disciplines,
which allows for internal growth and development for existing
staff. With limited recruitment over the last three years, there
have been few graduate recruitment schemes or juniors being
taken on for training.As a result, a gap has developed in the market, which is forcing
clients to compete for that experience in terms of salary and
benefits, hence looking to bring on staff with more experience
than would traditionally have been necessary. This has resulted
in salaries being driven up. A quick glance at the press will
provide plenty of evidence of the demand for candidates, with
agency and client led advertising reaching fever pitch.
The next stage in the cycle is likely to be a switch to recruiting
graduates and school-leavers, which will help to stabilise the
market at that mid level.Currently, however, the experienced professional on the
job market is the hottest commodity for any employer and
competition is incredibly fierce.
The skills in heaviest demand at present fall within the
international equity and derivative arena.
Whilst fixed income over the last three years has seen a level
of consistent recruitment, the peaks in volume recently have
noticeably been for equity and derivative product knowledge.
Hays Investment Banking Salary Guide 2005
glossary
Securitisationmeans:
pooling and re-packagingof non-tradable securities into
marketable securities.
BASEL IImeans:
round of deliberations by
central bankers from around
the world, under the auspices
of the Basel Committee on
Banking Supervision in Basel,
Switzerland.
BASEL II, which comes into
affect in Australia in 2008,
aims to produce uniformity in
the way banks and bankingregulators approach risk
management across national
borders. Banks are currently
changing their systems
to comply with Basel IIs
requirements. See:
www.bis.org/bcbs/index.htm
The Sarbanes-Oxley Act
(SOX) was passed by the US
Senate in 2002 in responseto the collapses of major
public companies such as
Enron, Tyco and WorldCom. It
aimed to strengthen corporate
governance Australian
companies that have
exposure to US securities
markets have to comply to
SOX.
fyi
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Investment Banking
There are many pathways open to you in investment banking. They
could include:
corporate finance and advisory services structured finance
project finance
trading
equity, fixed income and currency research
sales
derivatives
private equity and venture capital.
Corporate finance and advisory services
This involves providing acquisition, merger, fundraising and strategic
advice. You are likely to get involved in helping companies raise the
capital they need for ongoing operations, new projects or acquisitions.
Youd work out how much capital they need and how best to get it
for example, by borrowing from a bank or by issuing bonds or shares
or other securities. Transactions may include divestments, initial
public offerings, takeover defences, equity-linked and debt capital
issuance and, of course, M&A.
In M&As, you would help one company buy another or merge with
another. You might also advise clients how to fight off any unwanted
takeover bids. You are likely to be part of a team which gives advice,
values transactions, structures deals or negotiates favourable terms.
In the beginning, you could work as an analyst, running lots of
valuation models on spreadsheets and doing background research
into the companies and industries involved in any potential deals. Asyou gain experience and move up the ranks you are likely to get more
client-focused.
You might also work on the privatisation of government-owned
enterprises such as Telstra. Here, you could advise a government
about the nature, timing and pricing of asset sales, or get involved in
marketing the sale to investors.
People dealing with corporate finance often work for investment
banks, but they could also find opportunities at accounting firms,
the larger commercial banks, boutique corporate finance practices,
private equity companies and at large Australian companies.
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The big picture
Structured finance
Structured finance involves non-standard ways of raising money,
through tailor-made securities. These could include asset-backedcommercial paper, collateralised bond obligations (CBO), and
repackaged asset vehicles. The investment banks job is to create the
security so that it meets the needs of both the buyers and issuers,
set out the legal terms of the agreement, and price the deal. Here,
youll be looking for hidden risk and value in structured securities and
at ways to repackage and refinance a companys assets so that it is
best placed to meet its future funding goals. The job requires a solid
combination of spreadsheet, accounting and legal skills.
Project finance
Investment banks have made their mark as the financiers and
facilitators of large-scale business projects on behalf of companies
or governments. Project finance deals often bring together a
large number of investors, including commercial banks and even
development banks. Investment banks can be involved right at the
start by identifying needs, conceptualising projects, introducing
partners or structuring finance and they might continue by managing
funding during the construction and commissioning stages.
Trading
As a trader, you might be buying or selling shares, bonds, currencies
(referred to as Forex or FX), options, futures and other securities.
Traders often make snap decisions worth millions of dollars and work
in a fast-paced environment where world events can have a big impact
on the markets. As a trader, you would need to have very strong
analytical know-how, sure instincts, fast reflexes and sometimes,
poker-faced bargaining skills. Youd also need to understand marketsand the inter-relationship between markets. Along with numerous
other traders on the trading floor, you are likely to spend your
working hours in front of computer screens, watching prices move up
and down and tracking news and events that could affect prices.
Equity, fixed income and currency research
Equity analysts examine the strength of listed companies and
their future prospects. They are usually assigned to an industry or
region. They research stocks and come up with buy, hold or sellrecommendations for investors. Their duties might involve visiting
glossary
FXmeans:
Foreign Exchange
The classic image of a trader
a man on the trading fl oor,
shouting buy and sell
is now an extinct breed.
Today, trading is almost
paperless and takes place
in cyberspace. Although
a gut feel for markets
will always be important,
traders increasingly rely on
mathematical pricing models
and statistics.
fyi
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companies and developing close contacts with big investors or
individual clients. Investment banks often like to hire people with
industry experience into equity analyst positions (as opposed to fresh
MBAs or undergrads). For example, they might hire someone who has
worked previously in a mining or energy company to be their resources
analyst because this person will already have a good understanding of
the resources sector and will be able to ask the right questions.
Fixed interest and currency analysts research the prospects of bonds
or exchange rates. Each type of security requires different skills and
expertise. In foreign exchange markets, an understanding of general
macroeconomic and political conditions is useful while in fixed
interest markets having quantitative skills, a knowledge of pricing
models and arbitragetheory will pay off.
If you work in research, you will produce written reports on markets
or companies and their prospects. These reports will be distributed to
clients and read by the banks traders. Researchers spend their time
sifting through companies annual results and announcements, and
talking to companies about developments that could influence their
profitability and future prices of their shares or bonds. Researchers
need to be numerate, inquisitive and have strong presentation and
communication skills.
Sales
In sales you would be responsible for conveying information
about particular securities to large professional investors like
fund managers, charities and superannuation funds, or to wealthy
individual investors. Sales skills and product knowledge are crucial
in this area as is the ability to get through to busy investors. Youll
also need charm and persuasiveness, and should enjoy dealing
with people. You are likely to spend a lot of your time working thetelephones, often talking to clients from the moment the financial
markets open to the moment they close (as well as several hours
before and after).
Derivatives
Derivatives are types of financial instruments. Their value is derived
from the price of some underlying asset for example, an interest
level or stock market index. They are designed to help organisations
protect themselves against the risk of price changes, or to bespeculative investments. Options, swaps and futures are examples
glossary
MBAmeans: Masters of Business
Administration
Arbitragemeans:
simultaneous buying and
selling of one security at two
different prices in two different
markets, which results in
profi ts without risk.
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of derivatives. To structure derivatives, you will need to be innovative
and to be a good problem solver. Youll also need a strong quantitative
background, possibly in engineering, physics or applied mathematics.
However, a legal background may also prove valuable because
derivatives have to be structured around regulations and laws.
Private equity and venture capital
Private equity companies or funds help raise money for unlisted
companies to help them further their growth. They dont do this by selling
companies shares or bonds, but by taking a stake in the company.
They also hope to use their expertise to improve the performance of the
company, before selling out at a profit some years later.
The terms venture capital and private equity are often used
interchangeably but, strictly speaking, venture capital refers to
funding new and developing companies, while private equity is more
usually associated with management buy-outs or management buy-
ins of more mature companies.
If you work in private equity or venture capital, you are likely to work
for a small company or fund. You may, however, also find a role in an
investment bank or large accounting firm as an advisor.
Most private equity and venture capital firms in Australia dont
hire graduates directly and tend to take on people who have had
some years experience elsewhere such as in investment banking,
accountancy or strategy consulting.
However, if you do join a private equity fund in a junior position, you
are likely to spend a lot of time number crunching, examining the
accounts of the companies and building financial models. To do this,
you will need a strong financial background.
As you get more experience and take on more senior roles, you will getmore involved in appraising whether the company is worth investing
in at the asking price, and whether the fund is likely to be able to sell
its stake in the company at a profit in the future. You might also help
execute the deal that is, doing everything needed to ensure it takes
place. Once you become really senior in the fund, you could become an
originator. Here, you would oversee the deal while it is being done as
well as originate new deals by finding new companies for the fund to
invest in. For more senior roles, it also helps if you can build a strong
rapport with company executives and if you have some experience ofstrategy and the day-to-day requirements of running a business.
glossary
MBOmeans:
where a company, or a
division of a company, is
bought by its managers.
MBImeans:
where managers from
outside take over a
company.
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Women in investment banking
Investment banking is not generally regarded as a traditionalemployer for women and its widely considered a male-
dominated industry.
There are still relatively few females in the industry. Ninety-nine
per cent of the people I work with are male, says Isabella Ebbitt, an
executive in KPMGs real estate advisory area of corporate finance.
Similarly, a senior female analyst at BDO Chartered Accountants
and Advisers, says: Female partners are still in the absolute
minority in corporate finance but the number is increasing.
One problem for women, especially those with families, is that
many of the jobs involve working long hours.
Its really hard for women. The time when they peak at their career
in this industry runs into the time when they should be having
children. Its not easy. Making it work depends on the environment
you are in, notes one high-flying corporate financier.
But times are changing!
Firstly, many female investment bankers dont believe they arediscriminated against and most dont believe they earn lower salaries.
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Also, diversity is becoming a competitive necessity rather than
just a competitive advantage for many employers in the industry.
Women are increasingly playing a bigger role with greaterrepresentation at the senior levels and more female graduates
are joining the industry in areas such as funds management
and retail broking, there is good representation of females at all
levels and many examples of successful senior women.
But in other areas of the industry women remain under-
represented for example, in mergers and acquisitions,
structured finance and within the trading areas. Overall, however,
female representation at senior levels is generally lower when
compared with other industries.
Investment banks have attempted to address the gender
imbalance by focusing their energies on initiatives that provide
women with the training, development and support they need to
advance in this industry.
ABN AMRO, for example, offers female staff development
programs and flexible part-time and work-from-home options.
Paid leave of 12 weeks is offered to employees who are primary
care givers.
How much can I earn?
Salaries in investment banking tend to be
better than in many other sectors of the
economy, but what actually counts is the
bonuses that one earns over and above
the salary. According to Allan Ritchie, the
investment banking consultant at Hudson, top performers can earn a
bonus of 100 per cent plus of their salary. New graduates get smaller
portions of the bonus and bonuses rise with seniority. The higher up
you are the more of the bonus pool that accrues to you.
On top of this, say in private equity, theres a remuneration known
as carry. Although not common, the carry is a long-term incentive
which gives you a share in the business youve built up.
According to Allan Ritchie, a recent graduate entering the investment
banking world as an associate or analyst can expect to start offearning between $40 000 and $60 000 a year. A senior associate with
fact
MYTHthe banking and
finance industry is a
boys club
It has changed a
great deal, especially
in the dealing room
environment. Fifteen
years ago, three people
out of 80 were females.
Now its almost 50/50.
Top performers
can earn a bonus
of 100 per cent of
their salary.
Want more quality career resourcesfrom Career FAQs for FREE? Click here
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two to three years experience can start looking at $80 000 a year
and at $130 000 when he or she has three to five years experience
in the game. An associate director with five years or more experience
will take home over $150 000 while a director may pocket $180 000
to $275 000. An executive director or head of division will earn $250
000 plus a year. But of course, this is before the bonuses which will
depend on how good a year that area in the investment bank had.
Salaries at a domestic investment bank are often on a par with those
at international investment banks, but bonuses are not always as high.
Entry-level salaries are around $40K to $50K for a new
graduate with no experience. You will progress on merit and
usually earn a bonus on top of a base salary. After 10 years, youshould be earning well into the six figures.
Ben Reeves, National recruiting manager, KPMG
Performance-based bonuses
Bonuses are a standard element of the investment banking
sectors remuneration structure, and job seekers chase good
bonus payers. The aim of bonuses is to recognise and reward
employees for exceeding their individual targets and those of thecompany or bank. They also provide recognition for outstanding
contributions that exceed expectations at both team and
individual levels. But just how these bonus are allocated will vary
greatly between different organisations.
Essentially, however, the bank or major business unit must first
turn in a good performance. Then, depending on level of its level
of success, a team will get its share of the bonus pool. What
slice an individual gets of this share is based on his or her own
performance and varies depending on the seniority of their role.The more senior you are, the bigger slice you are likely to get.
Corporate finance and investment bankers are chasing
the 100 per cent of salary plus type of bonus but the
performance/profitability has to be strong.
Allan Ritchie, Investment banking consultant, Hudson Recruitment
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The following table shows the ages, jobs and salaries of investment
banking professionals interviewed for this book. Many have listed
their salaries without the healthy bonuses and other financial
incentives that are so much a part of this industry.
Agegroup
Position titleApproximate salaryas at 30 June 2005
($)
No. of yearsin job
No. ofyears in
profession
30s Associate director 250 000plus bonuses
18 months 7
Late 20s Senior analyst,corporate finance
70 000 3 months 1.3
30s Executive, realestate advisory
60 00080 000 2
Late 20s Manager, boutiqueinvestment house
130 000160 000plus bonuses
1 5
30s Senior executive,boutique corporateadvisory
Performance-based 2 4
30s Chief investmentofficer, listedproperty trust
300 0001 millionperformance-based
1
Late 20s Finance analyst Performance-based 1.5
Early 30s Manager, structuredinvestments
150 000 approx 4 7
30s Healthcare analyst,equities
Performance-based 6 6
Late 20s Manager, equitycapital markets
Performance-based 5 7
Early 20s Credit trader, globalmarkets
Performance-based 13 months 2
Mid 20s Director, short-terminterest rate trading
150 000250 000plus bonuses
1.5 6.5
40s Vice president, sales 100 000150 000plus 3060%
bonuses1 over 10
30s Senior analyst,financial riskmanagement
90 000100 000 plussuper and study
assistance3 5
Late 20s Senior analyst,management
60 00080 000 1 3
30s Senior analyst,management
60 000100 000 2 6
Career FAQs survey, 2005
You may notice that the interviewees are mostly in their 20s and 30s.
This confirms that, at least to some degree, investment banking is
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a high-paying young persons game and, the figures dont include
performance bonuses.
The next table from Michael Page International also shows salariesbefore bonuses are added. As you can see, there is considerable
variation in the range of salaries. This survey indicates that salaries
are negotiable with some directors starting on $160 000, while others
can earn $220 000 plus.
Corporate Finance Salary*
Analyst/executive 65K100K
Associate 100K120K
Manager 120K150K
Associate director 150K220KDirector 220K+
Equities research Salary*
Assistant analyst 80K120K
Analyst 120K200K
Senior analyst /lead analyst 200K+
Equity capital markets Salary*
Analyst 65K90K
Manager 90K130K
Associate director 130K160K
Director 160K+Source: Michael Page International Finance Salary Survey
* These figures are generally the total remuneration (i.e. cash, statutory superannuationcomponent and benefits), excluding bonus/incentive schemes.
However, no matter how your earnings are structured, what you
actually take home each year is what really matters. And, its bonuses
that count in investment banking. Indeed, bonuses are a key reason
why high performers want jobs in this industry.
The Hudson Recruitment salary guide shows how much bonuses
can boost your earnings and how performance can be important indetermining your income in the investment banking game.
glossary
Performance bonuses
means:
bonuses awarded for
achieving objectives.
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The salary listed is an approximate indication of what someone in that
position would earn. The bonus % of base shows how much more
you can earn if you meet your targets. The lowest end of the range
is the percentage of your salary you get (in addition to your salary)
if you and your team just meet your targets. The highest end of the
range indicates what is possible to earn if you exceed your targets.
However, if you dont meet your targets, you wont get a bonus and
may possibly lose your job because you arent performing.
Corporate finance/M&A Salary Bonus % of base
Head of division/MD 400K 75250
Director/senior vice president 275K 75150
Associate director 150K220K 90
Manager 80K130K
Equity capital markets Salary Bonus % of base
Head of division/MD 350K 75150
Director/senior vice president 275K 50100
Associate director 120K200K 50100
Manager 80K100K 50100
Debt capital markets/securitisation
Salary Bonus % of base
Head of division/MD 350K 100200
Director/senior vice president 275K 100200
Associate director 120K200K 50100
Manager 80K120K 50100
Structured finance Salary Bonus % of base
Head of division/MD 350K 75250
Director/senior vice president 275K 75150
Funds management Sydney Salary*
Performance analysts (3 years experience) 50K75K
Quantitative analysts (5 years experience) 80K120K
Equity analysts (5 years experience) 90K130K
Client relationship manager 130K150K
Portfolio manager 130K180K
Business development manager 130K200K
Source: Hudson salary guide
Note that a head of division or managing director (MD) can earn
$400 000 and receive bonuses of up to 250 per cent of the base
salary, totalling a massive $1 400 000.
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Who are the main employers?
People with investment banking skills can be employed by manydifferent types of organisations. In fact, their skills are needed
whenever large deals or projects are being structured, money needs
to be raised or financial assets need to be bought or sold. The main
employers of people with investment banking skills are:
banks
boutiques and smaller companies
private equity firms and funds
venture capital firms
accounting firms
government
corporate Australia.
Banks
Most of the traditional investment banks operating in Australia are
global multinationals with a head office based in another country.Some of the best known ones include:
ABN AMRO (The Netherlands)
BNP Paribas (France)
Citigroup (USA)
Credit Suisse First Boston (Switzerland)
Deutsche Bank (Germany)
HSBC Bank (UK)
ING Bank (The Netherlands)
JPMorgan Chase Bank (USA)
Merrill Lynch (USA)
Morgan Stanley (USA)
Nomura (Japan)
Royal Bank of Canada (Canada)
UBS AG (Switzerland).
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The big four commercial banks Commonwealth Bank, National
Australia Bank, Westpac and ANZ and some smaller banks like St
George also engage in investment banking activities.
Australia also has its own homegrown investment banking
operations, the biggest and perhaps the most successful of which
is Macquarie Bank. It is the only large, majority Australian-owned
investment bank. It is listed on the Australian Stock Exchange (ASX)
and operates in 23 countries.
Boutiques and smaller companies
Numerous smaller investment banking companies exist. Some are also
listed on the ASX, including Babcock & Brown and Mariner Financial.
Babcock & Brown, for example, has its headquarters in Sydney but
operates from 18 offices worldwide. Not only does it advise on and
arrange transactions, it sometimes takes a stake in them.
There is also a wide range of other boutique or smaller investment
banks. They include Investec, Caliburn, InterFinancial ECM and,
possibly Australias newest investment bank, State Equity Group,
which was launched in August 2005.
Private equity firms and funds
There are 13 private equity funds listed on the ASX and plenty more
that arent. Heres a selection of Australian private equity companies:
Archer Capital
CHAMP Private Equity
Crescent Capital Partners
DB Capital Partners
Hastings Private Equity
Ironbridge Capital
Wolseley Partners.
Its worth browsing through their websites to get a feel for what they do.
Archer Capital
www.archercapital.com.au
CHAMP Private Equity
www.champequity.com.au
Crescent Capital Partners
www.crescentcap.com.au
DB Capital Partners
www.dbcapitalpartners.
australia.db.com
Hastings Private Equitywww.hfm.com.au
Ironbridge Capital
www.ironbridge.com.au
Wolseley Partners
www.wolseleypartners.com.au
f ind out
more
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Venture capital firms
There are over 100 venture capital firms in Australia, managing $10
billion and employing more than 600 professionals. Heres a small
selection of these companies:
Allen & Buckeridge
Continental Venture Capital
Equity Partners
First Corporate Group
Momentum Venture Capital
Nanyang Management
Pacific Capital Corporation
RMB Ventures
Starfish Ventures
Technology Venture Partners
Venture Capital Partners.
A visit to their websites should give you a better idea of what theyactually do.
Accounting firms
Also employing people with investment banking skills are business
advisory firms like KPMG, PricewaterhouseCoopers, Deloitte and Ernst
& Young. They are typically involved in activities like mergers and
acquisitions, capital raisings, IPOs, financing, real estate, business
valuations and preparing independent expert reports. As they do not lend
money to fund transactions, the investment banking areas of accounting
firms are valued for their ability to provide independent advice.
Working for KPMG is an excellent career choice for those
wanting to work in investment banking because of our strong
learning culture, opportunities for travel, well structured
training programs, involvement of graduates in all aspects of
our assignments, and our approach to allowing graduates to work
across all parts of our business and with other divisions of KPMG.
Julian Vella, Head of Corporate Finance, KPMG
www.a-b.com.au
www.cvcltd.com.au
www.equitypartners.com.au
www.fi rstgroup.com.au
www.momentumvc.com.au
www.nanyang.com.au
www.capstart.com.au
www.rmb.com.au
www.starfi shventures.com.au
www.tvp.com.auwww.ventures.com.au
f ind outmore
glossary
IPOmeans:
Initial Public Offering. This
is the fi rst sale or issue
of privately owned equity(securities or shares) in
a company via issue to
the public and investing
institutions. An IPO
can also be known as
going public or taking a
company public.
AnIndependent expert
report:
informs shareholders
whether the share price
paid for any transaction is
fair and reasonable.
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Government
Numerous government departments employ graduates with finance
and investment banking skills. Governments do, after all, have to fund
large projects and look after tax payers money. The government is
also a major issuer of bonds.
Here are some government departments that hire people with
corporate finance and investment banking skills.
The Treasury
Treasury employs approximately 800 people in Canberra and runs a
12-month Treasury Graduate Development Program. There are alsoemployment opportunities in Treasuries in other states.
Reserve Bank of Australia
The Reserve Bank of Australia (RBA) hires graduates for a number of
its divisions. You could, for example, become involved in the banks:
foreign exchange market operations
holdings of domestic and foreign securities
monitoring and analysing domestic and overseas financial markets.
Australian Prudential Regulation Authority
The Australian Prudential Regulation Authority (APRA) is the prudential
regulator of banks, insurance companies, larger superannuation
funds, credit unions, and building and friendly societies. A job with the
regulator could involve a wide range of analytical financial skills.
Corporate Australia
Many of Australias largest companies, and multinational companies
with branches in Australia, hire people with investment banking skills
to help them raise money on the capital markets, restructure their
balance sheets or invest in other companies or projects.
For example, Lend Lease employs a number of people with investment
banking skills in its corporate finance, project finance and treasury
departments to help it fund, construct and manage its real estate
assets around the world. The group has been behind the development
of many office towers, hospitals, airports, shopping centres,pharmaceutical facilities and residential communities.
The Treasury
http://graduates.treasury.
gov.au
RBA
http://rba.recruitasp.com.au
APRA
www.apra.gov.au/careers
fyi
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What are employers looking for?
When hiring new graduates, investment banks look for excellentacademic performance regardless of academic field, although,
typically, successful candidates have completed commerce, law,
economics or finance and related degrees.
Investment banks want employees with a combination of strong
analytical and interpersonal skills although some jobs lean more
towards one skill set than another.
Investment banks are looking for people with:
a high degree of confidence and well-developed interpersonal skills strong problem-solving, analytical and quantitative skills
the ability to work well under pressure and to tight deadlines.
They also want people who:
thrive in a collaborative environment and are team players
are highly motivated, flexible and have initiative.
To fit the bill, youre likely to be a team player, a fast learner,
innovative, committed and creative. Youll also need to possessleadership potential and integrity. Youll probably have to demonstrate
that youre highly numerate, quick thinking, personable and articulate.
Early positions in investment banking are likely to require good
spreadsheet skills and analytical skills. However, in mid-career,
your success may depend more on your ability to communicate with
clients and get deals done. By this time, it will also be crucial to have
a good understanding of market trends, the larger macroeconomic
environment and deal mechanics.
Although qualifications are clearly important, when it comes
to securing a job and establishing your career, there are a
range of skills that are critical. The skills that top this list
are communication skills. Finance workers, no matter what role
or company theyre in, need to be able to communicate and
relate well with their customers, managers and co-workers.
Customer service, sales and relationship management skills are
also extremely important. The finance industry is primarily a
service industry. In recent years, there has been a shift from
the industry being fairly average in terms of the customerservice it provides to now having a strong focus on high net
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worth customers and needing employees with strong relationship
management skills who can retain these customers and grow
their business.
Angela Jolic, Finance Sector Union
Meet some employers
Lets have a closer look at what financial and HR managers look for
when recruiting. What types of people do they think best suit the
financial profession? And what are the things you should considerbefore embarking on an investment banking career?
We spoke to:
Jan Swinhoe Global head of property, industrials & consumer
Mark Thexton Associate director
Chania Higgins Graduate recruitment executive
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Jan Swinhoe Global head of property,
industrials & consumer
Jan currently works at Westpac Institutional Bank, having perviously
worked in corporate superannuation and capital markets. She has
seen significant chnages take place in the industry.
q&a
What are the best aspects of your industry?
Its very intellectually stimulating, there is a high level of people
contact, its a very practical environment and there is a high degree of
change which keeps it very dynamic and interesting.
What are the disadvantages?
The long hours and constant pressure.
What type of person best suits investment banking?
Someone who is bright, numerate, quick to adapt to change and who
likes to challenge the status quo.
Can you describe a particularly interesting project you have
been involved in?
Being involved in industries as they evolve and in Merger and Acquisition
activity. As different products develop its good to be the first bank to doa deal of that kind and be at the frontier of product development.
How did you get to this position? What was your career
path like?
I did a Bachelor of Science Honours (Pure Mathematics) at UNE. I
then studied through the Institute of Actuaries in London. Initially,
I worked for two large life insurance companies in the area of
corporate superannuation in Australia, before moving into banking as
a derivatives trader. I also spent time in New York where I broadened
out into capital markets and derivatives. Then I was looking for a more
people-related, management role and I joined Westpac InstitutionalBank over ten years ago, where I have held numerous positions.
What do you feel young people contemplating a career in
investment banking should know?
The need to be patient and flexible, as this industry changes all the time.
Has the industry changed in the time youve been in it?
Absolutely! Its completely different from what it looked like when
I started. The technology has changed and there is much more
regulation of the industry, with the introduction of things like Bazel lI,
International Financial Reporting Standards and Sarbanes-Oxley. Its
also far more technologically reliant and this has speeded up the pace
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of an already busy environment. We also have to deal with greater
expectations from customers, who have become more demanding and
have increasingly complicated requirements. Weve had to develop a
better understanding oft heir needs and the range of products now onoffer is enormous. On the recruitment side its become more difficult
to identify the skills that would prepare someone for the role and
theres a lot more flexibility and variance on what core skills are required.
The recruitment processes are also far more formal these days.
What did you want to be when you were at school? Could you
have imagined your career turning out this way?
I wanted to become either a psychiatrist or a mathematician. I
couldnt have imagined my job now, but it has led to the right
outcome as Ive always been able to use the quantitative skills and
have the people contact.
Mark Thexton Associate director
Mark believes that corporate finance and investment banking offer
enormous opportunities as a career option. Previously to his current
position at PriceWaterhouse Coopers Securities, Mark has worked in
many corporate finance positions including business analyst.
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q&a
What are the best aspects of your industry?The corporate finance and investment banking industry offers
enormous opportunities for professional and personal development.
It is relatively unique in that it offers exposure to a wide range
of industries, diverse types of organisations (listed and private
companies, trusts) and a myriad different and complex transactions
(divestments, acquisitions, mergers, initial public offers, management
buy-outs etc.). As a result, there is always an immense amount to
learn and it is constantly challenging and therefore very rewarding.
What are the disadvantages?
It is a relatively high-pressure environment, especially when there is alot to do and too little time. The hours are long so dont expect to work
nine until five. Planning often goes out the door when critical issues
arise or a major project lands so then its all hands on deck to get the
job done quickly and to the highest standards.
What type of person best suits investment banking?
Some characteristics of the people who are very successful in
corporate finance/investment banking include: quick to learn
and to absorb new concepts, lateral thinker, persistent, effective
communicator and analytical. Also, given the nature of projects and
level of negotiations, people in corporate finance/investment bankingtend to be quite thick skinned.
Can you describe a particularly interesting project you have
been involved in?
Probably the most memorable and enjoyable of recent projects was
the initial public offering of Tattersalls Limited. It was a very large
project which involved Tattersalls transitioning from an estate (akin to
a private trust structure) to a listed public company. This was the first
time in Australia an estate had been restructured to a public company,
which added significant complexities and time to the project.
How did you get to this position? What was your careerpath like?
Before moving into corporate finance, I worked in industry for about
eight years. I started as a business analyst (after completing a
commerce degree), then progressed to strategy and the development
of new businesses in the banking industry. I have also completed
postgraduate studies in finance and investment management. These
were all excellent areas to gain relevant experience which has been
invaluable for the development of my career in corporate finance.
What do you feel young people contemplating a career in
investment banking should know?Like most industries, there is a lot more to corporate finance or
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investment banking than the general external perceptions. It is not all
glamour and high flying, but rather a lot of hard work and dedication
in order to be very successful. Saying that, it is very challenging and
can be an incredibly rewarding career.
Has the industry changed in the time youve been in it?
The corporate finance and investment banking industry is relatively
dependent on equity and capital market conditions. In the last few
years weve seen very strong markets (1999/2000 and current) as well
as soft markets in 2003.
What did you want to be when you were at school? Could you
have imagined your career turning out this way?
After finishing studies, I had intended to move into consulting/
strategic advisory. To some extent, corporate finance/investment
banking is a similar field to this (advising clients on strategic matters
etc.), but is also quite different in certain respects. I think that my
skills naturally evolved somewhat and I therefore found myself more
suited to corporate finance than other areas of advisory/consulting.
What is an industry myth? What is the fact?
That investment banking is about just doing high-flying deals. In
reality, there is a great deal of work that goes on behind the scenes,
including planning and project management, managing client
expectations, industry and market research, company analysis,
financial modelling and project administration. That being said, it is a
very fulfilling and rewarding career!
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Chania Higgins Graduate recruitment executive
In her role as graduate recruitment executive at Macquarie Bank,
Chania is fully conversant with the desired attributes of the graduatesthat Macquarie Bank recruits each year to fit the culture of a diversified
international provider of financial and investment banking services.
q&a
How many people work for your company in Australia? How
many people in the world?
Having grown substantially since our establishment, we currently
employ over 6800 people in 24 countries around the world.How many investment banking personnel work at your bank?
As of 31 March 2005, the Investment Banking Group employed
1838 staff.
What are the different types of investment banking jobs
(different areas) in your bank?
Within our investment banking group, graduate opportunities are
primarily offered in corporate finance and equities research. Across
Macquarie, a diverse range of graduate opportunities is available
including accounting, banking and finance, equities sales, structuring
and trading, funds management, human resources, informationtechnology, property and risk management.
What are you looking for in investment banking
professionals?
When recruiting, we seek the following attributes:
a keen interest in an investment banking career
high levels of motivation and energy
above average analytical ability
excellent communication
interpersonal skills
the ability to work as part of a team
creativity and entrepreneurialism
and a strong sense of discipline and ethics.
How does your graduate recruitment program work?
Each year we recruit graduates from a variety of tertiary disciplines for
a broad spectrum of roles throughout the bank. Graduates are typically
hired in their final year of study, to commence the following February.
fact
MYTHit is an aggressive
male-dominated
environment
it is a team-drivenenvironment withequal opportunities formales and females.
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Investment Banking
How many graduates apply each year? Which faculties do
you recruit from?
On average, we receive approximately 4500 applications. We recruit
from a variety of disciplines including accounting, actuarial studies,combined law, commerce/business, computer science, economics,
engineering, finance, human resources, information technology,
mathematics, property and science for positions across the bank.
How do you select graduates?
Graduates apply via an online application form. Applications are then
assessed and the successful applicants are invited in for a first-round
interview with a member of the graduate recruitment team. Subsequent
interviews are held with business managers and psychometric testing
and reference checking are also part of the process.
What are the career opportunities of someone who goes intoinvestment banking?
At Macquarie, we are meritocracyand as such career advancement is
based on job performance. We have a strong internal labour market
which allows staff to diversify their career paths should they have an
interest to do so.
How do you suggest people go about getting into investment
banking?
The undergraduate and graduate program is a good place to start.
What do you feel young people should know aboutthe profession?
It is a dynamic, entrepreneurial, client-based, transaction-driven,
challenging and at times high-pressured environment.
How has the profession changed?
The profile of investment banking in Australia has increased as a
result of growth and the globalisation of worldwide markets.
What personal attributes suit a job in investment banking?
Commercial acumen, innovative, tenacious, driven, strong sense
of ethics.
Whats the best thing about working in the industry?
It is a challenging, dynamic and rewarding industry that is continually
changing.
Are there any negatives?
Long hours can occur when working on transactions.
glossary
Meritocracymeans:
a system in which
advancement is based
on individual ability or
achievement.
Macquarie runs a summer
vacation program which
recruits around 150 graduates
and over 80 undergraduates
a year from a wide range
of degrees, most in itsSydney, Melbourne and New
Zealand offi ces.See How are
people recruited? for more
information on graduate and
vacation programs in general.
fyi
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The big picture
What support organisations exist?
The investment banking industry does not have one institute ororganisation that specialises in providing guidance and support for
industry members. This is because of the diversity of roles that exist
within the industry it would be difficult to create a one size fits all
type organisation. However there are many organisations which focus
on specific aspects or roles within the profession.
Main industry bodies
There is a range of organisations which provide support services to the
industry in general, as well as training opportunities ranging from
postgraduate studies to one-day workshops and career guidance.
Australian Financial Markets Association
The Australian Financial Markets Association (AFMA) is the peak
representative body of the Australian over-the-counter (OTC) wholesale
financial markets industry. OTC markets cover transactions in financial
securities facilitated outside an exchange. These transactions
include trading in foreign exchange, interest rate products, financial
derivatives, repurchase agreements, commodities, equity, and
electricity derivatives. The AFMA offers a range of training programs
and runs over 30 workshops presented by market practitioners. It also
offers the Diploma of Financial Services (Financial Markets).
International Banks and Securities Associationof Australia
The International Banks and Securities Association of Australia (IBSA)
represents investment banks operating in Australia. Its primary role is
to press for government policies that will encourage the strong growth
of investment banking in Australia. It does not provide information or
recruitment support for students seeking to enter the industry.
Finance Sector Union
The Finance Sector Union (FSU) represents employees working
in finance positions right across the Australian finance industry,
including those working in banks, insurance companies, finance
companies, broking firms, financial planning companies, fundsmanagers, credit unions, money market dealers and investment
AFMA
www.afma.com.au
IBSA
www.ibsa.asn.au
Financial Sector Union
www.fsunion.org.au
f ind out
more
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Investment Banking
advisory companies, amongst others. The union is active in improving
the working conditions of its members and is intimately aware of the
pressures on an individual trying to manage a finance career.
Australian Venture Capital Association
The association is a source of industry statistics and news. It
promotes opportunities for education and networking and runs an
annual Australian venture capital conference.
Australian Bankers Association
The Australian Bankers Association (ABA) provides analysis, advice
and advocacy and contributes to the development of public policy onbanking and other financial services. With the active participation of
the member banks, the ABA works to foster an environment in which
financial services are valued and can prosper.
Accounting and Finance Association of Australiaand New Zealand
The Accounting and Finance Association of Australia and New
Zealand (AFAANZ) represents the interests of accounting and finance
academics and other people interested in accounting and financeeducation and research in Australia and New Zealand. Members
include academics and professionals from major corporations,
business houses, banking, finance and investment bodies. It runs
education programs, continuing professional development programs
and holds an annual conference. It also publishes a journal,
Accounting and Finance.
Securities and Derivatives Industry Association
Securities and Derivatives Industry Association (SDIA) is the peakindustry body serving 65 stockbroking firms and over 1300 practitioners
across Australia. It represents the stockbroking industry on policy
and issues with government and regulatory agencies and deals with
customer-supplier relationship issues with exchanges, clearing houses
and other suppliers. It also provides professional recognition for
industry practitioners and professional education and training.
www.avcal.com.au
ABA
www.bankers.asn.au
AFAANZ
www.afaanz.org
SDIA
www.sdia.org.au
f ind outmore
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The big picture
Women in Finance
Women in Finance (WIF) is a non-profit organisation which provides
networking opportunities for women in the finance industry, withbranches in New South Wales, Queensland, Victoria and Perth. WIF
provides personal and professional development opportunities
through a series of monthly breakfast functions, workshops,
mentoring programs and other networking events. Speakers present
advice on a range of topical issues including career development,
leadership and current industry trends.
Support organisations for new recruits
There are a number of support organisations or networks for new
recruits into the industry. Support initiatives within investment banks
may include mentoring programs and internal networking groups.
Many investment banks also liaise with universities to organise joint
ventures, such as career days, to keep students informed.
Financial Management Association of Australia
The Financial Management Association of Australia (FMAA) is a
student organisation encompassing students from the universities of
Queensland, Sydney and Melbourne. Some members are sponsors of
the FMAA, which provides career advice and information on a range of
industries (including the investment banking industry). The FMAA also
organises events where students have direct access to member banks.
Securities Institute of Australia
The Securities Institute of Australia (SIA) represents the securities
and financial services industry. It has more than 11 000 members and
14 000 students in 59 countries. Its aim is to raise standards in the
securities and financial services industry by:
providing practical, contemporary and innovative education
fostering ethical and effective markets
advocating high levels of professional conduct.
SIA can help you identify and pursue your chosen field in the securities
and finance services industry and offers career path seminars.
WIF
www.womeninfi nance.com.au
FMAA
www.fmaa.com.au
SIA
www.securities.edu.au
SIA Student Services
NSW and ACT
Queensland
VIC and TAS
Western Australia
SA and NT
f ind outmore
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YOU HAVE THE AMBITIONS,
WE HAVE THE CHALLENGES
As Australias leading investment bank, Macquarie
has built a reputation for innovation. So it should come
as no surprise that the opportunities we can offer you
stretch well beyond the ordinary.
A career at Macquarie can lead you anywhere from
corporate finance, accounting and wealth creation to
trading, sales and risk management.
Better still, youll be learning from professionals
recognised as leaders in their fields and working on
deals that are the envy of the industry.
To read more about the graduate and undergraduate
programs and other opportunities available with us, visit
our website. At Macquarie, we can guarantee that you
will be challenged, but never bored.
twww.macquarie.com.au/careers
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51/170 UBS 2005. All rights reserved.
Your exceptional talent drives our success.
It starts with you.
UBS is a global financial powerhouse because of the ideas, skills, and commitment
to excellence of our employees. We offer talented individuals a world of oppor-
tunities. A diverse culture of mutual respect and support gives all our employees
the opportunity to excel. Our world-class training prepares you to be successful.
Your skills and ambition are recognized from day one.
To learn more about life at UBS and apply for a position, go to:
www.ubs.com/graduates
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Insider infoInsider infoWhat jobs could I do?
Investment bankers work in large and boutique banks, in financial
service firms such as PricewaterhouseCoopers (PwC), KPMG, and
Ernst & Young, to name just three, and in government.
The investment banking professionals we talked to worked in the
following jobs:
Business analyst
Private equity analyst
Associate or associate director, corporate finance
Senior analyst, investment banking firm
Real estate advisory
Head of transactions
Manager, structured investments
Healthcare analyst, equities
Credit trader, global markets
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Manager, equity capital markets
Director, short-term interest rate trading
Vice president, sales
Manager, development of financial products
Senior analyst, financial risk
Senior analyst, APRA.
This is by no means the full range of investment banking jobs,
however, it does give a broad overview of the job market.
What do real people say abouttheir jobs?
What do people working in these jobs have to say about their career/
work? Some of the people interviewed asked to remain anonymous so
they could talk more freely about their jobs. An * next to the persons
name indicates the name has been changed.
Damian Motika* Business analystDamian is in his early 20s and has been a business analyst at
Macquarie Bank for the past 15 months.
q&a
What do you like best about your career?
The opportunity to learn about commercial dealings and to play an
active part in transactions. In addition, the responsibility given to allanalysts is great.
Can you briefly describe a particularly interesting project you
have been involved in?
I was involved in the restructure of a large privately owned corporation
where I worked closely with top management.
What do you wish someone had told you about investment
banking before you started on this career path?
Definitely do it!
cv vacationaccountancy jobs >>
graduate recruit, Macquarie
Bank >>business analyst
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Insider info
Does this job allow you to achieve the worklife balance that
suits you now?
Not always. It i