Pratik S’ Post

Over two decades ago, an investment bank introduced a rule limiting pitch books to 20 pages, called “Thin to Win.” The aim was to ease the workload for junior bankers and improve client presentations, based on studies showing audiences lost focus after 10 pages and remembered only three main points. Despite its promising start, the initiative lasted just a month. Competing banks’ 80-page presentations with extensive appendices made clients perceive longer decks as a sign of greater commitment, leading to the abandonment of “Thin to Win.” https://lnkd.in/gfV9q-Q5

What I learned in investment banking, Part 3. Connect with your internal team on a personal level. My favorite person to work with early in my investment banking career was Eric Yang. He connected with me on a personal level and we became good friends. When it came time to crank many nights and weekends on a project, I was happy to do it with Eric. He took time to get to know me. He took me to lunch and checked in. That increased my productivity on his projects much more than the internal systems we had in place to push productivity. He didn't do it as a productivity hack. He did it because he genuinely cared. The productivity came out as a byproduct. I wasn't the only one. He had an army of people internally that wanted to work on his projects because everyone likes him and trusts him. If you want your team to perform, try Eric's approach of showing genuine interest in them individually. Show them that you have their back and that they have space to contribute. They will naturally push harder and do a better job. Think about someone that you loved working for. What is it about this person that still resonates with you?

What I Learnt from Managing a $20 Million Portfolio 💹 Last Wednesday, I had the incredible opportunity to participate in Morgan Stanley's Step In, Step Up Program after successfully navigating a rigorous selection process. The program offered a deep dive into the world of finance and investment banking, highlighting both the challenges and opportunities the industry presents. M&A Advisory Activity Our day began with a series of insightful talks from industry leaders, followed by an M&A advisory activity led by the investment banking team at Morgan Stanley. We were tasked with identifying the best company to merge with, using both quantitative and qualitative tools. This exercise emphasised the importance of prioritising key financial metrics, such as EBITDA, CapEx, and percentage growth. After conducting our analysis, we presented our conclusions as a team to Carl Bodenstein, gaining valuable experience in collaboration and strategic thinking. Trading Competition We also took part in a trading competition organised by AmplifyME, where we managed a (simulated) $20 million portfolio. We traded five assets: Bitcoin, Meta, Apple, Amazon, and Tesla. With guidance from Lucy Plenderleith to ensure we stayed within our trading parameters, and Chidera Abana’s insistence that we ‘Buy Bitcoin!’, we made decisions based on market reactions to news headlines and occasionally took speculative plays on perceived asset values. Our team placed 3rd, achieving over $7.3 million in P&L while maintaining a low-risk appetite of 25%. Key Takeaways High Performance Insights: Dominic Rea shared insights into what makes a high-performing individual, emphasising the importance of operating above one's pay grade. He valiantly fielded my barrage of questions on bonds until he jokingly declared, "You've asked too many questions; I'm going to give someone else a turn!" Despite my persistence, he graciously answered every single one of my queries, proving he has the patience of a saint. Industry Shifts: Jennifer Byron discussed the industry's shift from securities to wealth and investment management, noting its potential for more stable income streams. She also highlighted the importance of humility and a willingness to learn in the banking sector, qualities that are often implied but not explicitly stated. CV and Cover Letter Tips: Zubair T. provided valuable advice on crafting CVs and cover letters. He stressed the need for a cover letter to differentiate oneself from other applicants and highlighted the importance of including personal interests on a CV, which I had previously overlooked. I had the chance to meet some amazing people, and I’m excited to see what opportunities lie ahead. A special thank you to everyone who contributed to this experience, including Linda Minns for organising this opportunity. I met some amazing, like-minded individuals Tray-Sean Ben Salmi FRSA, Emma Yusuf, Elsè Qingyi Zheng, Abid Miah and so many more. I'm excited for the future!

“Long hours have been a perennial feature of investment banking for as long as I can remember” Did you know that investment banking remains a field where 80-hour weeks are common, despite new measures to improve work-life balance? ➡️ JPMorgan and Bank of America have introduced policies to limit hours and track time, but the demands of bespoke deals and high client expectations keep pressure high. ➡️ The gruelling hours are tied to the nature of the business: investment banking is a bespoke, service-driven industry where client satisfaction is paramount. ➡️ This culture gained attention in 2021 when Goldman Sachs analysts revealed the toll of 100-hour weeks on their mental health, sparking debates about work conditions. ➡️ Even as technology advances, it has often increased expectations - analysis and turnaround time, making it harder to cut back on hours. Despite some efforts, the balance between intense client needs and employee well-being remains a challenge. ➡️ A true change might require redefining how banks interact with clients, setting clearer boundaries, and managing expectations. However, this would require a radical change to how the industry functions. Article Credit: Financial Times, 2024

Interaction between a Senior and Junior banker in a Boutique Investment Bank v/s a Bulge Bracket Given the small size, a boutique bank often offers junior bankers more hands-on experience and exposure to a wider range of responsibilities compared to the larger, more hierarchical bulge bracket banks 1) Boutiques At a boutique bank, junior bankers may enjoy greater interaction with their senior colleagues. This closer interaction may mean more mentorship and guidance for junior staff. Junior bankers at boutique banks may also benefit from a greater say in the deals they work on, and may be invited to attend more pitches and client meetings. 2) Bulge Brackets The larger, more hierarchical structure of bulge bracket banks means that senior investment bankers are often focused on managing client relationships and delegating tasks. As a result, junior bankers at these firms may have less day-to-day interaction with their senior colleagues. However, bulge bracket banks tend to offer more formal training, and senior bankers are often involved in these programs. The larger size of these banks also means that junior bankers can form strong working relationships with their colleagues, and may enjoy greater resources, including classroom training facilities. In general, the working culture at a boutique bank may be more conducive to interaction between senior and junior bankers. The smaller size of these banks means juniors may feel less like a cog in a machine and creates a steep learning curve and growth for a good performing entry level analyst. Read related post 1) Communicating with Senior Bankers in Investment Banking https://lnkd.in/gamdWz9s -------------------------------------------------------------------------------------- Learn practical investment banking I am starting the next batch of my Live Investment Banking program at Wizenius - Be Deal Ready from July 14th. Drop in your details and get a call from me (Link in the comment section)

In recent years, a significant issue has emerged in investment banking: the difficulty of getting promoted especially for mid-level employees. This problem is creating frustration for individual bankers and headaches for banks. Let’s dive into what’s really going on and explore the complexities of this situation. https://lnkd.in/gAfvwCUY

Well-being of bankers matters. ✅ Great to see this development at J.P. Morgan regarding dedicated resources to employee well-being for their junior bankers. Judging by the comments in the article, such development could be seen as 'superficial' given the significant demands placed upon employees who work in investment banking, as well as the fact that the Financial Times chose to highlight the word 'wellbeing'. Yet, whilst this measure may not 'shift the dial' and change the culture of investment banking (which is another topic altogether), such employees need to have access to resources and know where to go to get support when it comes to maintaining their individual well-being. Recent tragic cases only emphasise the significant importance of this. As I noted in the title of an unrelated email I recently received, "all lives matter", and that includes those who are on the front line meeting the demands of the clients of the bank, no matter how junior they may be. #wellbeing #finance #wellbeingatwork

There is a space for growing of Wealth Management, trading and investment banking industries. Morgan Stanley's Q1 2024 results have exceeded expectations with profits rising 14% YoY to $3.41 billion, and revenue climbing 4% to $15.14 billion. Wealth management, trading, and investment banking all contributed to this success. The bank's shares have already jumped about 2.5%. #finance #wealthmanagement https://lnkd.in/eDpmSGyC

I just completed Standard Bank's Corporate Investment Banking on @[Forage](urn:li:organization:68514998). 🌐 Exciting News! I just completed Standard Bank's Corporate Investment Banking simulation on @Forage, immersing myself in the world of Corporate and Investment Banking! 💼 In this enriching simulation, I: 🏦 Assessed a hypothetical client, Sea Harvest, as a Debt Solutions Analyst in a job simulation. 📄 Prepared a concise 1-page company profile, presenting it to the credit committee with meticulous attention to DETAIL. 🔍 Conducted research using the annual report and third-party sources to develop a balanced view of our client’s business and future performance. 📊 Created a comprehensive financial model in Excel, forecasting Sea Harvest's expected future performance with the BASICS OF FORECASTING. 🗣️ Presented to my manager about market current affairs and their implications, showcasing skills in VERBAL COMMUNICATION. Skills gained include COMPANY ANALYSIS, CORPORATE AND INVESTMENT BANKING, CRITICAL THINKING, CURRENT AFFAIRS, EXCEL, FINANCIAL ANALYSIS, IDENTIFYING RISKS, INDUSTRY RESEARCH, INFORMATION SYNTHESIS, MARKET ANALYSIS, MARKET RESEARCH, POWERPOINT, RESEARCH, and CORPORATE AND INVESTMENT BANKING PRODUCTS. I am grateful for this hands-on experience and ready to apply these skills in the dynamic realm of Corporate and Investment Banking! 🚀🔗 #StandardBank #CorporateBanking #InvestmentBanking #FinanceSkills #ProfessionalGrowth #ForageSimulation Check out the simulation here: https://lnkd.in/dDxaEHTM

Jefferies Investment Banking's Strategic Leap: From Underdog to Market Leader In a time when many major banks are consolidating or scaling back, Jefferies is making bold strides forward. This year, the firm has ascended from 11th to 7th place in investment banking revenue, showcasing its commitment to growth and innovation. A Client-Centric Approach Jefferies has successfully redefined itself by adopting a client-centric approach combined with deep sector expertise. This strategy positions the firm not just as a participant in the investment banking arena, but as a potential leader. With a global footprint spanning over 60 countries, Jefferies has established itself as a key player, serving as a bookrunner for a significant portion of U.S. IPOs.The Power of Strategic Growth The firm’s impressive rise is attributed to several strategic initiatives: Expansion of Services: Jefferies has focused on enhancing its advisory and capital markets services, which has led to substantial revenue growth. In recent reports, investment banking revenue surged, driven by increased activity in equity and debt underwriting. Sector Expertise: By prioritizing sector-specific teams, Jefferies has built strong capabilities across various industries, including healthcare, technology, and financial institutions. This allows them to provide tailored advice and solutions that meet the unique needs of their clients. Talent Acquisition: Jefferies has been actively hiring top talent from other major banks, further strengthening its competitive position. This influx of experienced professionals enhances the firm's ability to execute complex transactions and expand its market share. Looking Ahead As investment banking continues to evolve, firms must adapt to maintain relevance and drive success. Jefferies illustrates the power of strategic growth in a competitive environment. I’m curious:  What strategies do you believe are essential for firms to thrive in today’s investment landscape? How is your organization adapting to these industry shifts? Let’s engage in a discussion about how we can all learn from Jefferies’ journey and position ourselves for success! #InvestmentBanking #Jefferies #MarketLeadership #FinancialServices #GrowthStrategy #ClientCentricity