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Investment Banking 101: Recruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED BY TIS

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Page 1: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Investment Banking 101:Recruiting Overview

Joel Hanson, Jorge Castello, and Matt Cheung

HOSTED BY TIS

Page 2: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Today’s agenda

• Introduction

• Planning for the future

• What is investment banking?

• Freshman internships

• Sophomore internships

• Investment banking recruiting

• Banks and timeline

• Prep resources

• Networking tips

• Resume format

Page 3: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Introduction

Page 4: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Questions to ask yourself

• Where do you see yourself this summer?

• Where do you see yourself after college?

• The time to start planning your future is now

• Especially if you want to pursue a career in

investment banking

Page 5: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

What is investment banking?

Investment banks are financial institutions that assist

individuals, corporations, and governments in raising capital

by underwriting securities and advise them on major strategic

financial decisions. Investment banking can include:

• Mergers and acquisitions

• Restructuring transactions

• Raising capital in the debt and equity markets

• General advisory services

• Underwriting and brokerage services

• Research

Page 6: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Typical divisions in an investment bank

• Corporate Finance - Interacting with clients, giving

advice on transactions, and raising money for clients in

the equity and debt markets

• Usually meant when people refer to “investment

banking”

• Sales and Trading - Sales force that calls on

institutional investors to suggest trading ideas, take

orders, and execute trades on behalf of clients and the

investment bank

• Research - Make recommendations whether investors

should buy, hold, or sell a given security. Analyze

stocks and predict their movements within the market

Page 7: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Buy side vs sell side

• Buy side: Firms that make investments

• Private equity

• Hedge funds

• Asset managers

• Institutional and retail investors

• Sell side: Providing services to the firms that make

investments

• Investment banks

• Commercial banks

• Stock brokers

• Market makers

Page 8: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Freshman internships

Page 9: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

What to look for in a freshman internship

• Any type of internship can be valuable

• Take initiative and begin to build your resume

• Examples:

• Summer abroad programs

• Tech company internships

• Launching your own startup

• Youth tennis coach

• Golf course caddy

Page 10: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Where to look for summer internships

• Personal connections

• Likeliest source as a freshman

• Most companies only want to hire sophomores+

• USC students & alumni

• Where did current USC students intern their

freshman year?

• Alums at small, local firms?

• USC Career Center and Marshall Career Source

• Some opportunities open to freshmen

• Cold emails

Page 11: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Sophomore internships

Page 12: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

What to look for in a sophomore internship

• Gaining experience in finance is critical

• Preferably investment banking, private equity, etc.

• Corporate, accounting, and other internships can

still be valuable

• Consider how the internship will fit in your “story”

• Why does this internship lead you to want to do

investment banking?

• What aspects are similar to investment banking?

What aspects are different?

• Internships not just available during the summer

• Can work during fall and spring semesters

Page 13: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Fall, spring, and summer banking

internships

Page 14: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Full list of investment banking

internships

• Los Angeles

• FocalPoint, CriticalPoint, Park Lane, Siemer &

Associates, Salem Partners, Cappello Group, CREO

Capital Advisors, Telos Advisors, Ocean Park

Advisors, Roth Capital, Reynolds Advisory Partners,

Architect, B Riley, Solganick and Co, Hammond

Hanlon Camp, Harbor Ridge Capital, Harvey and

Company, 41 North Partners, Kinected Consulting,

Objective Capital Partners, Armory Securities

• Bay Area

• Vista Point Advisors, Woodside, MergerTech, Khosla

Ventures, Martin Wolf, Momentum Partners

Page 15: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Fall, spring, and summer private equity

and venture capital internships

Page 16: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Fall, spring, and summer corporate

internships

Page 17: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Other fall, spring, and summer internships

Page 18: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Diversity based internships

Page 19: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Investment banking recruiting

Page 20: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Bulge bracket banks

Page 21: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Elite boutique banks

Page 22: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Middle market banks

Page 23: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Recruitment timeline

• Things to start doing now

• Technical and behavioral interview preparation

• Thinking about where you would like to work

• Location, product group, industry group

• Bulge bracket vs elite boutique

• April - Apply to the TIS Mentorship Program

• July and August - Begin networking with bankers

• September - Fall Investment Banking Panel, TIS

Networking Trips

• September and October - First round interviews and

superdays

Page 24: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Preparation resources

• World, economic, and business news

• WSJ, NYT, The Economist, Financial Times, Bloomberg

• General industry information

• Mergers & Inquisitions, Wall Street Oasis

• Technical prep

• M&I guides, “Investment Banking” by Rosenbaum & Pearl

• Financial modeling / accounting

• Macabacus

Page 25: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Networking tips

• Over the summer

• Create an excel sheet with a list of banks

• Compile a list of 2-3 contacts per bank

• Begin to reach out for phone calls and coffee chats

• Important that you feel confident and prepared

going into these information interviews

• These calls determine who gets interviews

• Cold emails

• Critical part of the networking process

• Bankers expect to receive cold emails, but don’t expect

high response rate – 10 to 20%

Page 26: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Finding people to cold email

• How to find email addresses and formats

• Rapportive

• Google Chrome plug-in that searches guessed email

address on LinkedIn

• Can be used to determine company format

• Googling

• For large companies, their email format (ie

[email protected]) should be available

• MailTester

• Verifying email addresses

• http://mailtester.com/testmail.php

Page 27: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Sample email

Dear Mr. Traveler,

My name is Tommy Trojan and I’m a senior in the Marshall

School of Business at USC. After being introduced to

investment banking in a previous internship, my plan is to

pursue a fulltime position in the field after graduation. I noticed

that you have worked at both elite boutique and bulge bracket

banks. I would appreciate learning more about your career path

and perspective on working for these different firms. Please let

me know if you have 15-30 minutes available for a phone call

over the next few weeks.

Best,

Tommy

Page 28: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Cold email tips

• Always include your resume

• The quality of your resume is important – it is what will

determine if you get a response

• PDF attachment, never a Word document

• Follow up one week after the initial email if no response

• Only send one follow up email, then move on

• Ask something specific to the banker’s background

• Do research on LinkedIn

Page 29: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Resume format

• Industry standard

• List GPA

• List SAT score if strong

(2100+)

• Highlight relevant skills

and experiences

• Relevant coursework,

Training the Street,

etc.

• Resume must be

mistake free

Page 30: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Week in the life of IB recruiting

1-2 on-campus information sessions

5+ networking calls

1-2 coffee chats

1-2 first round interviews

• Very technical (30 min)

1 superday

• Typically more behavioral (2-4 hours)

Page 31: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

TIS Updates

• TIS E-Board Info Session- February 15th 7:30PM JFF 241

• TIS E-Board Social - February 20th 8PM Gateway Rooftop

• TIS E-Board Applications Due - February 24th 5PM

• Tentative investment banking case competitions

• Houlihan Lokey

• Immediately following spring break

• Restructuring focused case

• Credit Suisse

• Mid-April

• LBO focused case

• Launch of the TIS Mentorship Program

• Late April

Page 32: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED

Next IB101: Interview Workshop

• Next Friday, February 17 at 1pm in JFF 239

• Resume review following next week’s workshop

• Please apply resume tips provided today

• Topics covered

• What kinds of questions will I get in investment banking

interviews?

• How do I tell my “story” for investment banking?

• How should I approach answering technical questions?

Page 33: Recruiting Overview - Trojan Investing Societytrojaninvestingsociety.com › ... › Recruiting-Overview.pdfRecruiting Overview Joel Hanson, Jorge Castello, and Matt Cheung HOSTED