Coaching assembly financial institutions landscape

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Financial institutions landscape – main players Private Equity Firms

 Take private  Take majority stake in private companies

 Debt financing  Invests at different stage and in

Pension funds

Sovereign funds

 Long term investment partners  Generally low cost of capital  Less aggressive players

 Finance by government money  Less aggressive players

different sectors

Kuwait Investment Authority (KIA) Hedge funds

 Trading - long/ Short hedge funds

 Credit investments

Other asset managers

 Long term investment partners  Fund of funds  Less aggressive players

Banks and Audit firms

    

Private Equity Trading for 3rd parties Property trading Financing (IPO, debt etc…) Advisory (M&A, Restructuring, ECM, DCM, transaction services)

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Overview of a Bank Banks gather loads of different jobs and it is often hard to know where to look

BANK

Investment Banking  Assists individuals, corporations, and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities

 Also assist companies involved in mergers and acquisitions and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services

Retail Banking  Retail banking is when a bank executes transactions directly with consumers, rather than corporations or other banks

 Services offered include

savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards

Commercial Banking  Provides services, such as accepting deposits, giving business loans and basic investment products

 Mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking)

Wholesale Banking  Services provided to large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions

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Overview of Finance jobs Advisory

Corporate

Financing

Finance

Direct Investment

Front Office

Markets

Research

Risk

Mergers and Acquisitions (“M&A”): to provide strategic advice to companies when they sell or buy an asset or when they get bought Equity Capital Market (“ECM”): to advise companies which go though IPO, clients involved in Block trade, capital raising, issue of new shares etc…

Debt Capital Market (“DCM”): to advise companies in new debt issue, refinancing or debt restructuring

Restructuring: to advise a company which faces liquidity issue or debt repayment issue Leveraged finance: to provide debt financing to levered transaction Project finance: to provide financing to industrial projects (build a bridge, plant etc.)

Private Equity: consist in investing funds in private companies (acquisition of companies already private or taken private). Investment horizon are of c.3 to 10 years, depending on the assets and expected returns

Sales: to link the clients with financial markets, selling them financial products (vanilla or structured) related to their particular needs

Trader: 1) take a position on the financial markets on behalf of a client and 2) hedge the risk related to this position Structuring: create and price specific products answering the client’s particular needs

“Quants” – quantitative analysis: develop algorithms and programs to price financial products, manage risk, establish new trading strategy etc. Equity research: analyse sectors and listed companies in order to produce regular research notes including valuation materials, key strategic insights about the sector or the company Market risk: to manage risk on a portfolio of assets and different positions taken on the financial markets

Credit risk: evaluate the risk of default from counter parties Operations: evaluate “human” risk such as fraud, rogue traders etc… 4

The hierarchy 1

2

3

4

5

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MANAGING DIRECTORS

DIRECTORS

VICE PRESIDENTS

ASSOCIATES

ANALYSTS

INTERNS

Sources deals/ Relationship with client

Sources deals/ Runs process

Manages task force and junior bankers/ Runs process

Financial analysis/ Admin

Financial analysis/ Admin/ Research

Supports team

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