Select Financial Services Segments Investment Banking a b

Select Financial Services Segments Investment Banking a. b. c. d. e. Industry Coverage Product Group Capital Markets Sales & Trading Equity Research a. b. c. Client Pitching Valuation / Modeling Deal Execution a. M&A b. Leveraged Finance c. Equity & Debt Solutions a. b. c. Portfolio Credit Analysis Pricing Counterparty Risk Ratings P&L Reporting Mark to Market Cash Operations Settlements a. b. c. d. Front Office a. Middle Office Hedge Funds b. c. d. e. f. g. h. c. Private Equity Venture Capital Value, Growth, Blend Long-only, Long/Short, Shortonly Fundamental, Distressed, Macro, Event-Driven, Trading, Quant a. b. c. d. e. f. Growth Equity Large-Cap Fund Middle Market Control Equity Secondaries Co-Investing a. b. Control Equity Co-Investing Investment Analysis Portfolio Management Trading a. b. c. d. Deal Origination Valuation Investment Analysis Modeling Portfolio Management a. b. c. d. e. Cash Management Legal Entities Tax Structuring Investor Reporting Fund Valuation a. b. c. d. Cash Management Legal Entities Tax Structuring Fund Valuation CFO/COO Cash Management Marketing Legal

Investment Banking Overview

Investment Banks serve as intermediaries between providers and users of capital Chinese Wall Strategic advisory Securities underwriting Users of capital Investment Banking Sales & Trading Research a. Corporations b. Governments c. Municipalities Private side Public side Providers of Capital a. Individuals b. Pension Funds c. Insurance Companies d. Asset Managers e. Corporate Treasuries f. Sovereign Wealth Funds

Overview of Investment Banking Capital Markets a. Equity capital-raising a. Initial public offerings (IPOs) b. Follow-on offerings c. Equity-linked (convertible) b. Debt capital-raising a. High-grade or investment grade b. High-yield c. Syndicated loans d. Tax-exempt Advisory a. Mergers & Acquisitions a. Buyside b. Sellside c. Spin-offs / Splitoffs / Carve-outs d. Hostile defense e. Hostile takeovers / proxy fights f. Joint Ventures b. Financial Sponsors / Leveraged Finance c. Restructuring d. Ratings

What Does An Investment Banker Do? Origination Execution a. Client Relationship Management a. Ongoing dialogue on financial markets, industry developments, new products b. Long-term relationship as advisor to Senior Management and Boards b. Idea Generation and Problem Solving a. Strategic Alternatives b. Capital Raising c. Optimizing Capital Structure d. Risk Management, Dividend Policy c. Assessment Of Opportunities a. Financial Analysis b. Communication a. Management, Board of Directors b. Internal Committees c. Identify Potential Investors d. Negotiation / Structuring Transactions e. Due Diligence f. Documentation

Investment Banking Groups Capital Markets a. Equity Capital Markets b. Debt Capital Markets c. Tax-exempt d. Leveraged Finance e. Securitized Products “Markets” Industry Coverage a. Consumer & Retail b. Healthcare c. Technology d. Media & Telecom e. Industrials f. Natural Resources g. Real Estate Product a. M&A b. Corporate Finance “Technical”

Investment Banking Competitive Landscape Bulge bracket Middle Market Boutique Low Capabilities High

Life of an Investment Banking Analyst

Overview of Investment Banking analyst programs a. b. c. d. e. Two-year program with opportunity for a 3 rd year 6 -8 week training Mentorship programs Networking opportunities Summer internship program serves as primary feeder to full-time analyst positions

Role of an Investment Banking Analyst a. Be a member of a deal team, executing day-to-day activities surrounding live transactions b. Perform financial analysis and modeling c. Develop and prepare client presentation materials (pitches, roadshows, board materials, etc. ) d. Coordinate roadshows, and M&A processes e. Research and due diligence

Why Investment Banking? Benefits a. b. c. d. e. f. g. h. “Everyday is different” Exposure to senior management Steep learning curve Work with talented and motivated people Gain a strong background in financial analysis Help execute exciting, landmark transactions Networking Exit opportunities Challenges a. b. c. d. Long and unpredictable hours Traveling Demanding senior bankers High stress/pressure environment

Tools of the Trade Banker Skill Set a. b. c. d. e. f. a. b. c. Motivated Team player Quantitative Personable Flexible Articulate Positives/Drawbacks a. b. c. d. e. f. Aggressive Deal oriented Willing to take initiative Handle stress well Professionalism Responsible a. b. c. d. e. Exposure/network Magnitude/notoriety of deals Responsibility Skill and knowledge base development Compensation a. b. c. d. e. Little things can mean a lot and poor execution can mask good skills a. attention to detail b. aesthetics c. professionalism d. timeliness Communication is the key to good teamwork and efficiency a. understand what expectations are (timing/deliverable), aka underpromise and overdeliver Analysts generally treat their years as an investment in personal capital a. seek out work—be an entrepreneur b. vary the people and types of projects to work with/on c. maximize client exposure and value add Long hours Work-life balance Stressful environment Intensity Focus on detail

Qualities that Investment Banks Look for in Candidates a. No one facet is more important than the rest. A well-rounded candidate who strives to encompass a wide-variety of talents and interests often finds success a. A Strong Interest in Finance a. take courses that demonstrate your interest in finance b. ability to explain: what is investment banking? what does an analyst do? why would you be a strong candidate? a. Coursework or Work Experience a. that demonstrates comfort with numbers/knowledge of financial statements b. that shows comfort in front of people (e. g. , sales position, student government) c. any work experience that demonstrates drive a. A Team Player a. team-driven (job/athletic/academic) accomplishments on resume b. the objective is to demonstrate that you work well with others a. A Record of Success and Achievement a. academic GPA, scholarships/honors, test scores a. Leadership of student organizations or teams a. a high level of athletic accomplishment b. community service with a record of achievement

General Preparation a. Network with peers and alumni b. Internships c. Research - Do I want to do Investment Banking? What type of firms? d. Make sure your resume is clear, concise and error free a. Take advantage of resources available to you (alumni, Feld Career Center, etc. ) b. Everything is fair game e. Practice, practice

The Interview a. Be prepared: know as much about the bank and position as possible b. Know yourself: what motivates you, your strengths and weaknesses and be able to articulate those points c. Know EVERYTHING on your resume d. Be honest and demonstrate enthusiasm and motivation e. Read the Wall Street Journal EVERYDAY and use the Vault Guides f. Practice interviewing (mock interviews, preparing answers, etc. ) g. Ask questions

Resources a. b. c. d. e. f. Vault Career Guides Breaking Into Wall Street Prep Wall Street Training Deal. Maven Wall Street Training

Corporate Banking Overview

What is Corporate Banking? a. Provides Corporate Finance advisory, structured finance, and the extension of capital to corporate clients b. Corporate Bankers are coverage officers who are the primary point of customer contact (aka “Relationship Managers”). Corporate bankers are responsible for: a. forming trusted advisor relationships with clients b. developing integrated financing strategies to satisfy complex client financing needs c. providing innovative intellectual and financial capital to clients c. Corporate Bankers partner with Investment Banking and product groups such as Capital Markets, Derivatives, and Cash Management/Treasury groups to provide the full spectrum of banking services to clients

Corporate Banking a. The Corporate Banking product offering is focused on debt and other corporate finance products: Investment Banking M&A a. b. c. Strategic Advisory Divestitures Acquisitions Corporate Banking Equity a. b. c. d. IPOs Follow-On Issues Preferred Convertible s Debt a. b. c. d. e. f. Debt Issuance Acquisition Finance Bilateral & Syndicated Loans Derivatives Commercial Paper Hybrids/ Convertibles Structured Products a. b. c. d. e. f. g. Receivables Securitization Asset Based Finance Project Finance Synthetic / Leveraged Leases Commodities / FX Equity Derivatives Pensions Cash Management / Treasury a. b. c. d. e. f. Cash management Securities Services Trade Finance Investments Agency & Trust Corporate Cards

Corporate Banking a. For large multi-national corporations, corporate bankers primary contacts in a company are the CFO and Treasurer Coverage Product Offering Board of Directors Strategic and Financial Advisory Investment Banker CEO CFO Capital Structure Management Treasurer Assistant Treasurer HR Ops Corporate Banker Cash Management and other Treasury Products

Corporate Banking a. Role of an Analyst: a. b. c. d. e. f. g. h. i. Prepare client presentations and marketing materials Participate in customer calls and client meetings Perform industry and company research to develop a view on financing transactions Coordinate due diligence process Navigate and participate in term sheet negotiation Analyze the risks associated with a transaction and the implications on relationship returns Drive dialogue with Credit Risk Management on client credit analytics and recommendations Evaluate impact of products on company’s future earnings, EPS accretion, and credit ratios Analysis and dissemination of industry performance and trends

Corporate Banking a. Although skill sets are similar, the role of a corporate banking analyst slightly differs from an investment banking analyst Low Somewhat Low Financial Modeling Credit Analysis Valuation Pitching/Presentation Deal Execution Client Interaction Hours in the Office Investment Banking Corporate Banking Medium Somewhat High

Credit Risk Management Overview

What is Credit Risk Management? a. Analyzes, monitors, and mitigates credit risk for individual clients by evaluating new transactions and managing a loan portfolio b. Participates in deal teams with primary focus on the bank’s credit exposure to the client c. Manages credit approval process (including preparation of credit approval memos) d. Responsible for approval decision as to whether to lend/commit e. Works with Banking (Investment Banking and Corporate Banking) and Product partners on client strategies relating to capital structure f. Monitors the aggregate portfolio risk for corporate clients g. Completes hedging strategies to mitigate risk from distressed loan exposure

Credit Risk Management a. Group Interaction Investment Banking a. Derivatives and other Traded Products a. b. Work together on extending financing on M&A, LBOs Bridge Loans Corporate Banking a. Risk required to approve any credit exposure relating to derivative positions Work together on extending credit for capital structure financings and other banking products Credit Risk Management Cash Management / Treasury Products a. Loan Capital Markets (Leveraged Finance and High Grade) Risk required to approve any credit exposure relating to cash management positions (ie. Letters of credit, overdrafts, etc. ) a. Legal a. Work together on identifying credit risks in credit agreements Work together on structuring financings and negotiating credit agreements

Credit Risk Management a. Role of an Analyst: a. Prepares transaction credit approval memos a. Focusing on credit quality of the borrower and bank’s commitment b. Participates in due diligence process Prepare financial models projecting cash flows and ability to repay debt Compose annual and quarterly credit reviews to determine risk ratings of clients Complete valuations of companies (discounted cash flow analysis, comparables) to determine loan to value e. Perform portfolio stress testing to determine potential portfolio losses f. Complete periodic industry and sector overviews, primarily focused on industry performance g. Design hedging strategies (CDS purchases, asset sales) to mitigate outsized risk b. c. d.