working in the city an introduction to investment banking, fund management and venture capital...
TRANSCRIPT
Working in the City
An introduction to investment banking, fund management and
venture capital
Christiian Marriott
22nd October 2001
Contents
What the City comprises Capital markets Fund management Insurance Venture capital and private equity IT Support/ancillary services
What its about Getting in Career paths Lifestyle/Money or Money/Lifestyle
Careers in the City - overview
M a rine
M a rin e /S h ip p ing
A v ia tion
B ro ke rs /U n d e rw rite rs
L lo yds o f Lo n d on
In su ra n ce
H e d g e F u n ds
P riva te e q u ity
V e n tu re ca p ita l
S p e c ia lis t m a n a g e rs
P o rtfo lio m a n a g em e nt
In s titu t io na l sa le s/b ro k in g
R e se a rch
F u n d m a na g em e nt
D e riva tive s
F X
D e b t
E q u it ies
C a p ita l m a rke ts
N e w issu e s
M e rg e rs & A cq u is it io ns
C o rp o ra te f in a n ce
In ve s tm e n t ba n k ing
R e c ru itm e n t/H R
Jo u rn a lism /In fo rm a tion se rv ices
F in a n c ia l P R
A cco u n ta n cy/C o n su lta n cy
L a w
IT
S u p p o rt se rv ices
T h e C ity
Back office – administration and custody
Capital markets/corporate finance:What it’s about
Trading, selling, researching, broking any financial instrument Equities – shares in companies Debt – loans to governments and companies FX – currencies Derivatives on all of the above
Either for clients (fee or commission) or for own profit
Commercial and investment banks, stockbrokers, boutiques, specialists
Capital markets/corporate finance:What you’ll be doing
Research Analysing and writing about sectors, countries,
currencies etc. Trading
Buy low and sell high Broking/sales
Sell e.g. the research, your clients shares, new financial instruments to companies
Relationship management
Capital markets/corporate finance:Getting in
Graduate training/milkround Accountancy or law (corporate finance) MBA graduate intake 2-3 years in a commercial role in industry
(for corporate finance) Strategic consulting
Capital markets/corporate finance:What employers look for
Numeracy can be acquired…
Good communication skills (for client-facing roles)
Respond well to pressure/deadlines Computer literacy Languages, for some roles
Capital markets/corporate finance:Career paths
2-5 years post graduation – good time for MBA
Early specialisation will be tend to be limiting, e.g. bond traders will stay in the bond markets
Corporate financiers can go into industry, venture capital or consulting
Capital markets/corporate finance:Lifestyle and remuneration
Lots of: Competition Pressure Money Travel/overseas postings
Not much: Job security Life
Fund Management:What it’s about
Lots of desktop analysis, company reports Scrutinising brokers’ and investment
bankers’ research Meeting company managers Making significant buy/sell decisions Deciding which way to “bet” on takeovers Structuring and marketing Fund products
Fund Management:Getting in
Graduate training Learn financial statements and basic
company analysis Accountancy training or CIMA Industry Benchmark exams: IMRO and CFA
Fund Management:What employers look for
Good analytical skills Numeracy requirements not too strong
Ability to question and be cynical Good writing and presentation skills Ability to make decisions and stick by
them – embrace responsibility
Fund Management:Career paths
More flexibility to move between mainstream asset classes, e.g. European shares to UK bonds
Move from managing funds into creating and marketing new products (or vice versa)
Move into new areas such as hedge funds or private equity
Fund Management:Lifestyle and remuneration
More balanced than capital markets or corporate finance in terms of money and pressure
Lots of exams (compliance) Travel not guaranteed, very City
orientated
Venture capital/private equity:What it’s about
More active, hands-on, fund management Investing in private companies/new
technologies: Life sciences, optical networking devices Fishing fleets and bottled gas distribution
Funds are difficult to raise, specialist teams
Venture capital/private equity:Getting in
Accountancy Strategic consultancy Industry Corporate finance/M&A Science and technology (for venture
funds)
Venture capital/private equity:What employers are looking for
Good company analysis, but more in-depth, experience “at the sharp end” in companies
Financial understanding, good financial modelling rather than advanced maths
Good people skills, more than other sectors of the City
Languages increasingly attractive
Venture capital/private equity:Career paths
More of a destination than a crossroads Back out to industry or banking if required Long term employers because of incentive
schemes
Venture capital/private equity:Lifestyle and remuneration
Very competitive, but not too pressured in terms of hours/weekends
Lots of money if you pick the right firm Job security OK once you’re established Lots of contact with people Career base usually London but lots of
travel
Support Services:What it’s about
Financial PR Headhunters/recruitment consultants Information providers Information technology Journalism/specialist publishing In-house marketing for banks etc.
Support Services: Getting in
Some of the bigger firms are graduate employers, but no milkround, lots of small firms, a few agencies
Work experience vital for PR and journalism
OK for 2nd job after getting IT/research skills etc.
Support Services: Lifestyle and remuneration
All pressured, but none is equivalent to the most intense investment banking roles
Money usually not as good as other areas, except IT in general and select roles in other areas
Generally less travel, very London-focused roles
Conclusions
A huge career landscape, but don’t be daunted Accountancy made sound boring but is an
excellent start and keeps your options open You can plan ahead but be aware that anything
can happen Culture is everything – same job in different
companies can be world’s apart
How I got here
1992: Graduated in French and History and joined Acquisitions Monthly, leading trade magazine for M&A sector as trainee reporter
1996: joined Campbell Lutyens & Co., small corporate finance house
2000: joined Mezzanine Management, one of my principal clients
Learning more
Investment banking and fund management
www.wsj.com
www.efinancialnews.com
www.ap-info.co.uk
Venture capital/private equity
www.bvca.com
www.evca.com
www.privateequityonline.com
Contact
Christiian Marriott
Director, Investor Relations
Mezzanine Management UK Limited