Bank on Banking

In the past, M&A/Lev Fin & Financial Sponsors were generally considered to be the best way to get into PE. Is this still considered to be the case? I realize the main draw with these groups is the modeling experience in comparison to industry groups. What I’m curious to understand is that, even with a slow in deal flow, would these groups still be considered the best to join if PE is something you’d like to do in the future?

The modeling experience is definitely a sizable part of the attraction to those groups exhibited by P/E firms, and even with slower deal flow, there will still be a good amount of modeling, or at least more so than in most industry groups (outside of those that do all of their own modeling). That said, it isn’t just about the modeling, it is also about the contacts you will make and the perceived value of the group as a skill set in general. P/E shops see Lev Fin and M&A above all else as their feeder groups since that is how they view their job. Sponsors and the industry group that they serve follow, since those groups are still in line with their function/industry beyond just being P/E (for example, a renewable energy focused P/E shop would look to E&P or Project Finance).

While deal flow has definitely slowed down, it has also slowed down for the P/E shops – as Lev Fin comes back, so too will P/E shops, and, possibly, so too will hiring, if this all unfolds accordingly. If you are interested in breaking into P/E – look to M&A, then Lev Fin (although depending on the bank’s rep for the groups, they may be reversed), then Sponsors and then coverage.

As a recent Business school graduate, can/should I include my SAT score on my resume?

I wouldn’t include your SAT unless 1) you couple it on a line with your U Grad GPA and 2) have your GMAT listed with your B school. If you have your SAT listed and not your GMAT score, it will look a bit funny – sort of like you are relying on the distant past as a means of remedying your poor performance in the present.

Technically, if you have your GMAT on there, and it is strong, you don’t need your SAT – if, however, you just want to include it to avoid any potential questions (though I don’t see many arising), and you have a strong SAT (if it’s not strong, then obviously leave it out) feel free to include it as long as you stick with the 2 above conditions.

I’ve been placed on hold/on a waitlist for an IB opp, what should I do?

On hold is better than a ding, but you also don’t know how many people are “on hold.” For now, I would focus on finding other opportunities, BB, MM, boutique, and let the chips fall where they may regarding the “on hold” bank. If, however, you get an offer from another bank of the same caliber, or even a strong bank in a slightly lower tier while still “on hold”, you can absolutely contact the bank that put you “on hold” and let them know about your exploding offer – they will in that case either ding you, or make you an offer – either way the wait will be over and you will have gotten your verdict.

Do you know if banks will take back their offer if they are unsatisfied with your transcript, because you have taken too many courses P/NP thereby manipulating your GPA?

I think you are pretty safe. As long as your GPA is in the ballpark of what you claimed it was when you applied, you should be fine. It might look a bit funny to have a number of P/NPs in your transcript, but, honestly, they don’t give a crap. As long as your GPA is where it should be and you are graduating when you are supposed to be (based on what you’ve told them), you shouldn’t have a problem with retaining your offer (whether SA or FT). Banks will verify the transcript, but not scrutinize it – more as a means of checking what I previously mentioned and, honestly, dotting the “i”s and crossing the “t”s.

I was wondering if you offer any review services pro bono, for a discounted rate, etc.

Here’s the thing; first, I believe that my revision fees are fair and if I discounted someone or gave a free full revision to someone, I’d be expected to do the same for virtually everyone. Second, I always offer high level resume reviews (which often turn into more than “high level”) and I am always available to take a look at any of your resumes and give you some general feedback – you are welcome to send it over. I honestly enjoy working with so many of you on improving your resumes, and helping you all to land interviews – unfortunately, the most I can offer on a “free basis” is the high level reviews – whether through email, WSO, or private message.

Do I need my MBA to succeed in banking?

This is a question that I receive way too often (nothing wrong with questions, just that I hope this response helps to set the record straight). When it comes right down to it, you do not need an MBA to succeed in banking, to earn a promotion to associate, to VP, D, etc – you can do all of this with nothing more than your Bachelors. That said, the promotion to associate, and then subsequent promotions, are not automatic by any means and will require hard work, good connections, intellect, and, of course, a bit of luck. It is definitely possible to run the ladder without a finishing degree, but for many, the security or, rather, opportunity that an MBA offers is worth the break in employment. Additionally, if you are not one of the analysts who believe an associate promotion is your destiny (or implied – as in you are amazing and it is all but a given that you will earn one), the MBA is a nice back-up plan, or even go-to plan – then again, P/E, boutiques, buy-side are all good back-up plans as well. When it comes right down to it, an MBA is definitely helpful, but strictly in terms of investment banking necessities, it is not one.

Stay tuned for more articles on Missing the 3rd year offer, what a banker really does – part 2, and much more! Comments go below, and emails, as always, can be sent Here!