The promotion cycle in investment banking (IB) varies depending on the bank and the specific role however, it typically involves several stages over a number of years. Your career will generally include the following stages:

Analyst: This is an entry-level role and generally requires a bachelor´s degree. focused on supporting senior bankers in executing deals and providing financial analysis. Analysts typically have a 2-3 year cycle before being considered for promotion.

Associate: After successful completion of the analyst program, an associate is responsible for leading smaller deals and projects, and tend to take on more responsibility. Associates typically have a 3-4 year cycle before being considered for promotion.

Vice President (VP): After successfully leading on more complex deals and demonstrating solid leadership and strong deal execution skills a VP will generally take on a more senior role where the lead a team and manage client relationships. VPs typically have a 4-6 year cycle before being considered for a promotion.

Director: Directors are responsible for leading teams and executing large and complex deals, as well as mentoring and coaching junior bankers. Directors typically have a 6-8 year cycle before being considered for promotion.

Managing Director: This is the most senior role in investment banking and are responsible for leading teams, executing complex deals and managing client relationships. They also play a key role in business development and, have a significant impact on the overall performance of the bank.

It is worth highlighting that the promotion cycle in Investment Banks is highly competitive, and not everyone who starts as an analyst will make it to managing director level. Also, the above-mentioned promotion cycle and progression is just a general guideline and can vary depending on the bank and the individual's performance. 

Whilst PE (Private Equity) and VC (Venture Capital) are both forms of alternative investment, they have different characteristics and focus on different stages of the investment process:

1. Private Equity (PE) refers to the purchase of an existing company with the intention of growing the business and increasing its value. Private equity firms typically invest in mature companies that have a proven track record of generating cash flow but, still have potential for growth. They typically focus on companies that are undervalued or that are underperforming, and use a variety of strategies to increase the value of the company, for example, cutting costs, making acquisitions and expanding into new markets.

 

1. Venture Capital (VC) is the practice of investing in startups and early-stage companies that have the potential for rapid growth but, have not yet reached their maximum potential and profitability. Companies that require this type of investment are often in the process of developing new products, technologies or business models. VC firms provide funding to these companies in exchange for an ownership stake, and can also provide mentorship, networking and other resources to help the companies grow.

 
In conclusion, Private Equity (PE) firms invest in mature companies that have a proven track record with the intention of growing them to increase the value of the company. In contrast, Venture Capital firms invest in start-ups and early-stage companies that have high growth potential, but not yet reached profitability, with the goal of helping the companies grow and develop.

Generally speaking, the recruitment process for investment banking (IB) and private equity (PE) positions involves numerous stages, these often include:

1. Application: where the candidate submits their resumes to the bank, either through the bank's website or through a recruitment agency.
2.  
3. Screening: The recruitment agency or banks Human Resources department will shortlist candidates based on their requirements.
4.  
5. Interview: Candidates will generally be required to attend multiple interviews, these can range from HR interviews to meetings with the hiring manager and senior company members. The number of interviews required will depend on the level of the position applied for and the size of the company. These interviews can be performed in person, on the phone or using video conferencing.
6.  
7. Testing: the majority of banks (and all our clients) require candidates to take aptitude tests such as numerical reasoning, verbal reasoning or case study analysis (for example, a DCF or LBO model).
8.  
9. Offer: Successful candidates will be offered the position, they will then discuss the terms of the offer with the bank. We guide our candidates and clients through this process. All offers are normally subject to passing background checks.
10.  
11. Background Check: these could be processed by the recruitment agency, the bank or, an external party. They typically include verification of educational and employment history, and in some cases, credit checks and/or Disclosure and Barring Services (DBS).

DCF (Discounted Cash Flow) and LBO (Leveraged Buyout) models are two of the main types of financial models used by our clients within the Investment Banking sector.

So, what are they and when are they used?

A DCF model is a method of valuing a company or a project by forecasting its future cash flows and then discounting them back to the present value. The discount rate used in the DCF model reflects the opportunity cost of investing in the company or project, it also takes into consideration the level of risk. This type of model is typically used when evaluating investments, such as companies, projects, and real estate, as well as for valuing both public and private companies during the mergers and acquisitions process.

A LBO model is a financial model used to evaluate the feasibility of a leveraged buyout (LBO), which is the acquisition of a company using a significant amount of debt to finance the purchase. An LBO model is used to simulate the cash flow projections and the capital structure of the company after the acquisition. This allows the interested company/ parties to determine if the company can service its debt and generate enough cash flow to meet its financial obligations. LBO models are generally used by Private equity firms and investment banks to evaluate the potential returns of a leveraged buyout. 

Investment banking is a service offered in the financial sector to assist companies, governments and other organisations in raising capital. Typically, they do this by selling securities, providing financial advice and underwriting services for mergers and acquisitions. When raising capital investment banks act as a go-between for investors and companies; their aim is to help raise money for the company by issuing bonds and stocks to the public, in conjunction assisting investors to purchase these securities. In addition to these services, investment banks also provide a variety of other financial services, for instance, helping clients to restructure their finances and advice relating to mergers and acquisitions. Investment banks are also known to participate in propriety trading, this is the buying and selling of securities for their own accounts.
 
Generally speaking, investment banks are large financial institutions that are closely regulated and have a global footprint. Within an investment banking organisation, it is common to find skilled professionals such as, financial analysts, traders, salespeople and investment bankers. These individuals work as a cohesive team to execute complex financial transactions and provide their clients with comprehensive guidance and support. In addition to this they can also underwrite and structure securities and, provide advice on capital raising opportunities.
 
Investment banking is an extremely competitive field which can be very demanding with long hours, the work is often fast-paced and time-sensitive. The industry is heavily impacted by market conditions and the economy in general.

• The acquisition of the energy company Anadarko Petroleum by Occidental Petroleum for $38 billion
• The acquisition of the grocery store chain Whole Foods by Amazon for $13.7 billion
• The acquisition of the health insurance company Aetna by CVS Health for $69 billion
• The acquisition of the pharmaceutical company Allergan by AbbVie for $63 billion
• The acquisition of the technology company Salesforce by the software company Adobe for $15 billion

 

A Personal Letter Makes All the Difference!

There are usually three key elements in the first stage of a job application: the Curriculum Vitae or CV for short, the Application Form and the CV Cover Letter. It is the last of these which usually taxes the brain cells most of all. How do you write a succinct CV Cover Letter that uses just the right tone and conveys all the best aspects of your personality?

Step One: Choose the Right paper, Font and Layout.

Writing a CV Cover Letter is a professional task. This means that any old copy paper may not make the kind of impression you are looking for. You should select a slightly heavier weight than the pages you use in your photocopier but stick to the standard A4 size. Font and layout should also be drawn from the familiar repertoire of Courier, Times Roman, Arial, or whatever font you would normally use in your daily work. If you have very elegant handwriting, then by all means go ahead and craft a hand-written work of art. On the other hand, if like most people your scrawl is barely legible even at the best of times, then just type your letter neatly and sign it with a good quality gel or fountain pen.

Step Two: Maintain a Clear Focus.

As you start to write, think carefully about the three or four most important things you want to say. Don’t repeat all the details you have included in the other parts of the application, but single out just a few highlights which will hopefully mark you out as a person worth calling for interview. Say who you are (think of an up-beat phrase that describes yourself), the job you are applying for (just to keep the reader focused on the task in hand), why you are interested in the post, and what you can offer to the company. Finish with a word of thanks for reading your letter, and add a signature. Don’t launch into your life story and don’t try to be too clever. Just aim for clarity and authenticity.

Step Three: Spell Check, Re-read, Reflect and Revise!

This is perhaps the most vital part of CV Cover Letter Writing. There is nothing worse than a glaring grammar error or random spelling mistakes scattered throughout the text. Careful checking, and some revision here and there will improve your letter immensely.

Step Four: Repeat Step Three!

Yes, that’s right. You should put your letter aside for a while, sleep on it if you have time, and then read it again to check one last time for any minor flaws. Even better: ask a sensible friend to look it over for you and give some feedback. Now you can relax and send your letter off.

 

Guest copy: from DJG Consulting - Recruitment Paris specialising in Investment Banking jobs and executive assistant jobs

The tips that you receive before a job interview will depend upon whom you ask; but for the truly inexperienced who wish to acquire that dream job or that job that will get them by until they find their dream job - you're in need of job interview tips that will ensure you're shortlisted for the job that you want. Lucky for you, you've come to the right place.

 

How to Shoot Yourself in the Foot in the Interview

1) Stop using generalities, like “I’m a problem-solver” and “I’m a real team player.” Generalities about strengths are ignored, forgotten, or not heard. When interviewers evaluate a candidate they recall the examples and stories the candidate used to prove a point. From these examples they conclude to what degree the candidate possesses the strength or attribute.

2) Never say “I don’t have any weaknesses.” Everybody has weaknesses. The point of the question isn’t even about weakness, it’s an attempt to determine your character, honesty, and self-awareness. On the surface, saying you don’t have any weaknesses implies you’ve stopped growing, can’t learn anything new and can’t be coached. Openly stating a weakness, and describing how you’ve learned from it, indicates a willingness to get better.

3) Don’t give answers that are too short or too long. In an interview, you’re judged not just on the content of your answers, but also the quality of how they’re presented. The best answers are 1-2 minutes long. If your answers are too short you’re assumed to lack ability or insight, or interest. Worse, you force the interviewer to work too hard. Interviewees who talk too much are considered self-absorbed, boring and imprecise. Worse, after two minutes the interviewer tunes you out and doesn’t hear a thing you’ve said.

4) Don’t ask “what’s in it for me” questions. At the beginning of the interview, assume you’re the seller, even if you’re the hottest, in-demand candidate in the world. Asking self-serving questions like “what does the job pay?” or questions about benefits and related superficialities, are an instant turn-off. It’s certainly okay to ask about these things once the interviewer signals that you’re a serious candidate for the job.

5) Don’t look at your resume. During the interview you must not look at your resume. This is a sign you’re either nervous (which you probably will be), or you fabricated something. Interviewers expect you to know your work history completely, including companies, dates, job titles, roles, responsibilities and key accomplishments. To help recall these important details, write them down on a few 3X5 cards before the interview.

How to Gain an Interviewing Advantage

1) Be prepared. An interview is more important than any major presentation you’ll ever make. You need to be just as prepared. Part of this is reading about the company, the industry, the job description, and the LinkedIn profiles of the people you’ll be meeting. But this is just a start. Knowing yourself, your resume and work history inside-out, your strengths and weaknesses, and preparing to ask and answer interview questions is the hard part.

2) Ask insightful questions. Interviewers judge candidates on three big areas: the candidate’s first impression, the quality of the answers, and the quality of the questions. Great questions can often overcome weaknesses in the other areas. The best questions focus on the impact and challenges of the role, and the relationship of the job to the business. (see information at bottom of this sheet)

3) Convert the interview into a past performance review. If the interviewer seems to be box-checking skills and experiences, ask about the major performance expectations for the job. Then give examples of your biggest accomplishments to validate you’ve done work that’s comparable to what needs to be done.

4) Prove strengths and neutralize weaknesses. Write down all of your strengths and weaknesses. For each strength come up with 1-2 actual accomplishments you can use as examples to prove the strength. To neutralize a weakness, describe how you converted it into a learning experience, or how you manage to deal with it.

5) Ask about next steps. Towards the end of the interview, ask where you stand, and find out the next steps. If the interviewer is vague or non-committal, you’re probably not going to be called back. In this case, ask if there is something missing in your background or skill set that the job requires. Once you know this, you might be able to minimize the concern by describing some comparable accomplishment that was previously not considered.

For most hiring managers, the interviewer is more about box-checking and validating skills, combined with a big dose of gut feel and intuition. A savvy job-seeker can turn the odds in his or her favour by being prepared, recognizing that the interview isn’t a lecture or a series of 30-second responses, and asking insightful, business-oriented questions. Preventing what can go wrong, is a great way to ensure things go right.

The most important thing you must do in every interview is to ask great questions.

The key is to ask great questions- not to ask questions that you should know the answers to already (“What does the position entail?) or questions that make it all about you (“What is your vacation policy?”)

Here are 10 great questions you can use or make your own on your next job interview. Obviously they're generic and should be tailored based on circumstances:

Of course, the more research you do in advance, the more you can ask specific questions about the company’s recent news, blog posts, product launches, plans, etc. But here’s the bottom line:

Here are five questions great job candidates ask:

Maybe your top performers work longer hours. Or maybe flexibility and creativity is more important than following rigid processes. Or maybe landing new customers in new markets is more important than building long-term customer relationships. Or maybe spending the same amount of time educating an entry-level customer is as important as helping an enthusiast who wants high-end solutions.

Whatever the answer may be, great candidates want to know because 1) they want to know if they fit, and 2) if they do, they definitely want to be a top performer.

“What are the one or two things that really drive results for the company?”

Employees are investments, and every employee should generate a positive return on his or her salary. (Otherwise why are they on the payroll?)

In every job some activities make a bigger difference than others. You want your HR staff to fill job openings... but what you really need is for HR to find the right candidates because that results in higher retention rates, lower training costs, and better overall productivity.

You want your service techs to perform effective repairs... but what you really need is for those techs to identify ways to solve problems and provide further benefits -- in short, to generate additional sales.

Great candidates want to know what truly makes a difference for your company... because they know helping the company succeed means they will also succeed, on multiple levels.

“What do employees do in their spare time?”

Happy employees 1) like what they do, and 2) like the people they do it with.

Granted this is a tough question to answer. Unless the company is really small, all any interviewer can do is speak in generalities.

Even so, great candidates want to make sure they have a reasonable chance of fitting in with the culture -- because great job candidates almost always have options.

“How do you plan to deal with...?”

Every business faces a major challenge: technological changes, competitors entering the market, shifting economic trends... there's rarely a moat protecting a small business.

So while a candidate may see your company as a stepping-stone, they still hope for growth and advancement... and if they do eventually leave, they want it to be on their terms and not because you were forced out of business.

Say I'm interviewing for a position at your bike shop. Another shop is opening less than a mile away. How do you plan to deal with the new competitor?

Or say you run a poultry farm (a major industry where I live): What will you do to deal with rising feed costs?

A great candidate doesn't just want to know what you think; they want to know what you plan to do -- and how they will fit into those plans.

Finally, a new piece on how to succeed in an Interview :

https://www.linkedin.com/today/post/article/20140705055830-52594-the-five-deadliest-job-interview-mistakes?trk=tod-home-art-list-large_0

 

For more helpful tips take a look at our career advice or options below:

• INTERVIEW TIPS & PREPERATION 
• CV WRITING
• COVER LETTER WRITING
• RESIGNATION ADVICE
• LEGAL
• REGULATIONS
• GENERAL RECRUITMENT ADVICE
• NETWORKING
• Job Profiles

Our advice is not just generic recruitment advice we have tailored advice for each of the recruitment divisions we work in, including:

• Executive Search 
• Accountancy & Finance 
• Temporary & Interim
• M&A  
• Private Equity
• Real Estate 
• Capital Markets

We also have tailored advice on finance & accounting qualifications and career options with each qualification.

Qualifications - ACCA Qualification  ACA Qualification  CIMA Qualification  CPA Qualification  CA Qualification

Career Options - ACCA Careers  ACA Careers  CIMA Careers  CPA Careers  CA Careers

Our Finance & Accountancy Salary Survey 2015 is now available.

 

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