Career FAQs Investment Banking

8/12/2019 Career FAQs Investment Banking

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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

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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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v

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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vi

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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Investment Banking

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.

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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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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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Investment Banking

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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Investment Banking

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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The big picture

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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Investment Banking

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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The big picture

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
http://www.careerfaqs.com.au/http://www.careerfaqs.com.au/http://www.careerfaqs.com.au/http://www.careerfaqs.com.au/


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Investment Banking

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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Investment Banking

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


Late 20s Manager, equitycapital markets


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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The big picture

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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Investment Banking

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




Manager 80K100K 50100

Debt capital markets/securitisation

Salary Bonus % of base




Manager 80K120K 50100

Structured finance Salary Bonus % of base



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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The big picture

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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Investment Banking

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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The big picture

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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Investment Banking

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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The big picture

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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Investment Banking

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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The big picture

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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Investment Banking

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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The big picture

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

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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The big picture

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

[email protected]

Queensland

[email protected]

VIC and TAS

[email protected]

Western Australia

[email protected]

SA and NT

[email protected]

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


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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Investment Banking

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

Documents

Career FAQs Investment Banking