Ask an Associate working in Private Equity on Wall Street anything

[blackwallst]

Read Pearl & Rosenbaum Investment Banking guide. It tells you a lot about valuation, you can probably google and find a free pdf online. Or google macabacus they have online modeling / valuation walk throughs.

 

[Hank Scorpio]

Read Pearl & Rosenbaum Investment Banking guide. It tells you a lot about valuation, you can probably google and find a free pdf online. Or google macabacus they have online modeling / valuation walk throughs.

This is a good one, but I think it's been mentioned before.

what books you guys recommend on enlightening me the most on finance and banking

Don't know if you want to read a textbook, but this helps a lot too

View media item 598668

 

[hugheyfreeman]

Yo Hank you know anything about Benjamin Graham? Ever heard of him?

 

[Hank Scorpio]

Yo Hank you know anything about Benjamin Graham? Ever heard of him?

Yeah, I have. He's the father of value investing. I think he taught that course in Columbia right before the crash of 29'. The guy was really influential to guys like Buffett, Kahn and Schloss.

His principles are interesting, but I don't think I have the kind of money required to really apply them for substantial gains

 

[hugheyfreeman]

Yeah, I have. He's the father of value investing. I think he taught that course in Columbia right before the crash of 29'. The guy was really influential to guys like Buffett, Kahn and Schloss.

His principles are interesting, but I don't think I have the kind of money required to really apply them for substantial gains

I am about to read his intelligent investor book. I was thinking about reading investing for dummies. Which one do you think would be more valuable to me since I'm a rookie trying to get up on the investing game?

 

[jyung101]

Think APPL will grow any more? I mean is it worth a buy? I think we are all tired of the "smart phone era" but seems to me like the stock is holding pretty strong but then again as an investor you have to think what's next.

 

[crystalmethod]

Think APPL will grow any more? I mean is it worth a buy? I think we are all tired of the "smart phone era" but seems to me like the stock is holding pretty strong but then again as an investor you have to think what's next.

This question would prolly be better suited in this thread

http://niketalk.com/t/173127/official-stock-market-economy-thread-vol-schools-out/5910#post_18824381

IMO it will but its something you'll have to hold onto long term
And I would wait for a dip before going in.

 

[Hank Scorpio]

I am about to read his intelligent investor book. I was thinking about reading investing for dummies. Which one do you think would be more valuable to me since I'm a rookie trying to get up on the investing game?

Before reading that, I suggest you brush up on basic economic principles. Make sure you have a clear understanding of micro and macro economics. Investing for dummies is an OKAY start, but it's kind of "child's play" IMO.

Think APPL will grow any more? I mean is it worth a buy? I think we are all tired of the "smart phone era" but seems to me like the stock is holding pretty strong but then again as an investor you have to think what's next.

I think AAPL is the most disrespected company in the world. Look at their balance sheet for God's sake. They produce strong earning year in and year out and they're stock takes hits left and right. The average consumer is an idiot and most "power" traders all have agendas. I think AAPL's future is bright, very bright.

DISCLAIMER: I'm not saying you should or shouldn't buy AAPL though.

This question would prolly be better suited in this thread

http://niketalk.com/t/173127/official-stock-market-economy-thread-vol-schools-out/5910#post_18824381

IMO it will but its something you'll have to hold onto long term
And I would wait for a dip before going in.

The stock market and economy thread is pretty good and filled with a lot of goof info. I agree that AAPL is something you'd hold out for the long-term.

 

[Hank Scorpio]

Not so busy day today. Bump.

 

[solexsup]

Can you post a pic of yourself plankin on a million

 

[Hank Scorpio]

Can you post a pic of yourself plankin on a million

I don't plank. I drink scotch and smoke cigars.

I'm not posting pictures of me doing that either

 

[sstutter]

1. You're in a room with David Bonderman, Leon Black, Henry Kravis, David Rubenstein, and Steve Schwarzman and only have enough time to converse/network with one of them before they leave. Which one would you approach and why? If given the chance to work with and/or be mentored by any one of them, whom would you pick and why?

2. How do you think the Dodd-Frank Act is going to affect principal investing groups at BB's? From what I understand, the debt funds can play off what they do as "lending," thereby making it harder to be shuttered, but what do you think will happen to the funds that invest the firm's capital in other securities?

3. I have an informational interview with a well-respected, public investor lined up in the coming weeks (think David Einhorn/David Tepper/Carl Icahn status). Any advice? I know none of their funds hires undergrads (I'm a senior currently), but I still want to impress.

4. What non-finance books are you reading right now? Any recommendations for good/helpful non-finance books (doesn't matter if they're fiction or non-fiction)?

5. I want to gain a better understanding of the capital structure. Someone recommended "The Handbook of Financing Growth." Any other recommendations?

Much thanks for doing this, bruh bruh.

 

[Hank Scorpio]

1. You're in a room with David Bonderman, Leon Black, Henry Kravis, David Rubenstein, and Steve Schwarzman and only have enough time to converse/network with one of them before they leave. Which one would you approach and why? If given the chance to work with and/or be mentored by any one of them, whom would you pick and why?

2. How do you think the Dodd-Frank Act is going to affect principal investing groups at BB's? From what I understand, the debt funds can play off what they do as "lending," thereby making it harder to be shuttered, but what do you think will happen to the funds that invest the firm's capital in other securities?

3. I have an informational interview with a well-respected, public investor lined up in the coming weeks (think David Einhorn/David Tepper/Carl Icahn status). Any advice? I know none of their funds hires undergrads (I'm a senior currently), but I still want to impress.

4. What non-finance books are you reading right now? Any recommendations for good/helpful non-finance books (doesn't matter if they're fiction or non-fiction)?

5. I want to gain a better understanding of the capital structure. Someone recommended "The Handbook of Financing Growth." Any other recommendations?

Much thanks for doing this, bruh bruh.

1. I know Leon Black personally. Him and I exchange emails from time to time. One of my good friends father is on the board for Apollo. I've also met Henry Kravis. I see him almost on a regular basis. I'm sure some of you guys can piece that one together. I JUST met Schwarzman not too long ago. He's best buds with my Managing Director, they went to business school together. And I've met David Rubenstein a few times when I went over to Carlyle earlier this year for some business we had with them.

I've met all the people you've listed above, and got to talk to them more than once in different occasions. The person with whom I've had the most meaningful conversation would have to be Henry Kravis. He has more of a direct impact in regards to my professional growth.

2. Dodd-Frank is simply seen as a "band-aide" on the street. Yeah, it is the most comprehensive form of regulation brought down by congress, but I still think PI's will find way to work around the system and greed will find it's way with due course. The gov't would gladly oblige as well, just as long as money is being made.

3. Just be yourself and don't say anything that's past your realm or boundaries. Be humble and also show them that you're knowledgeable, but you recognize that you don't know everything and willingly to learn anything. Also, don't just always talk about business and finance. Try to talk about something personal so they can remember you. Share a funny story if you have one. Ask them about their careers and lives and what kind of advice they can give you.

4. Behind the Beautiful Forevers by Katherine Boo

5. "Capital Structure Decisions" also read "Free Cash Flow and Shareholder Yield" by William Priest.

 

[sstutter]

1. I know Leon Black personally. Him and I exchange emails from time to time. One of my good friends father is on the board for Apollo. I've also met Henry Kravis. I see him almost on a regular basis. I'm sure some of you guys can piece that one together. I JUST met Schwarzman not too long ago. He's best buds with my Managing Director, they went to business school together. And I've met David Rubenstein a few times when I went over to Carlyle earlier this year for some business we had with them.

I've met all the people you've listed above, and got to talk to them more than once in different occasions. The person with whom I've had the most meaningful conversation would have to be Henry Kravis. He has more of a direct impact in regards to my professional growth.

5. "Capital Structure Decisions" also read "Free Cash Flow and Shareholder Yield" by William Priest.

Damn, your having interacted with such titans of industry is cool as hell, especially this early on in your career. Thanks for the recommendations; I'll check them out in the coming weeks.

 

[Hank Scorpio]

Damn, your having interacted with such titans of industry is cool as hell, especially this early on in your career. Thanks for the recommendations; I'll check them out in the coming weeks.

Yeah, I've been really fortunate to have the opportunity to meet many different people so far in my career. I just try to make the best out of it and learn as much as I can whenever I'm around these people.

 

[antidope]

Are you ever going to go back to get your MBA? How often do people go back to school after working in IBD, PE, HF, etc?

I honestly don't know at this point. It really all depends on what happens within the next few years.


Usually 85% of people go back to school after IB. The reason for this is because, 90% of the analyst class gets let go after their 2 year contracts expire. They usually go to school to get their MBA's and try to get an associate position afterwards. The 10% that manage to get invited for the 3rd year usually end up getting a direct promotion to Associate.


As for PE and Hedge Funds--it really all depends. They're more inclined to "grow" their own and "groom" them for higher positions than most BB's. This is mainly the reason why I may not go back for my MBA, especially since I already have a CFA.

Do you hold any other certifications besides your CFA? I cant remember if its already been dicussed.

 

[Hank Scorpio]

Are you ever going to go back to get your MBA? How often do people go back to school after working in IBD, PE, HF, etc?

I honestly don't know at this point. It really all depends on what happens within the next few years.


Usually 85% of people go back to school after IB. The reason for this is because, 90% of the analyst class gets let go after their 2 year contracts expire. They usually go to school to get their MBA's and try to get an associate position afterwards. The 10% that manage to get invited for the 3rd year usually end up getting a direct promotion to Associate.


As for PE and Hedge Funds--it really all depends. They're more inclined to "grow" their own and "groom" them for higher positions than most BB's. This is mainly the reason why I may not go back for my MBA, especially since I already have a CFA.

Do you hold any other certifications besides your CFA? I cant remember if its already been dicussed.

Series 7, 79 and 63

 

[antidope]

Are you ever going to go back to get your MBA? How often do people go back to school after working in IBD, PE, HF, etc?

I honestly don't know at this point. It really all depends on what happens within the next few years.




Usually 85% of people go back to school after IB. The reason for this is because, 90% of the analyst class gets let go after their 2 year contracts expire. They usually go to school to get their MBA's and try to get an associate position afterwards. The 10% that manage to get invited for the 3rd year usually end up getting a direct promotion to Associate.




As for PE and Hedge Funds--it really all depends. They're more inclined to "grow" their own and "groom" them for higher positions than most BB's. This is mainly the reason why I may not go back for my MBA, especially since I already have a CFA.

Do you hold any other certifications besides your CFA? I cant remember if its already been dicussed.

Series 7, 79 and 63

Nice.


I take my 66 in two weeks, gonna do the 63 after that even though everyone says theres no need since the 66 ecompasses both the 63 and 65. I've wanted do the 79 but currently my firm does not sponsor people in my department for it so I'm out of luck in that regard. I mentioned earlier that I have my 7 and 24 currently.

 

[Hank Scorpio]

Nice.


I take my 66 in two weeks, gonna do the 63 after that even though everyone says theres no need since the 66 ecompasses both the 63 and 65. I've wanted do the 79 but currently my firm does not sponsor people in my department for it so I'm out of luck in that regard. I mentioned earlier that I have my 7 and 24 currently.

You don't need to take the 63 if you're taking the 66 in two weeks. I honestly don't know anyone in finance who willing takes these series exams if they're not needed. Although, I did know one guy once who took the 7, 63, 65, 66, 24, 86 and 87 Dude even wanted to take the 79 too. BTW, he's doing nothing substantive in finance at the present moment. He was a broker and took all those exams for "fun".

Why take the 79 if you're not doing any sort of Investment Banking work? It's just overkill and it won't really score too many "points" with interviewers, because they'll be compelled ask what kind of IB work you did.

The 24 is good to have if you're in some type of supervisor role. Usually portfolio managers/PI's have this.

How did you take the 7, but didn't take the 63 right after? Everyone I know who took the 7, 6, 79 etc etc usually always take the 63 right after. It's like the supplement exam for any main series license.

 

[antidope]

Nice.



I take my 66 in two weeks, gonna do the 63 after that even though everyone says theres no need since the 66 ecompasses both the 63 and 65. I've wanted do the 79 but currently my firm does not sponsor people in my department for it so I'm out of luck in that regard. I mentioned earlier that I have my 7 and 24 currently.

You don't need to take the 63 if you're taking the 66 in two weeks. I honestly don't know anyone in finance who willing takes these series exams if they're not needed. Although, I did know one guy once who took the 7, 63, 65, 66, 24, 86 and 87

Dude even wanted to take the 79 too. BTW, he's doing nothing substantive in finance at the present moment. He was a broker and took all those exams for "fun".


Why take the 79 if you're not doing any sort of Investment Banking work? It's just overkill and it won't really score too many "points" with interviewers, because they'll be compelled ask what kind of IB work you did.


The 24 is good to have if you're in some type of supervisor role. Usually portfolio managers/PI's have this.


How did you take the 7, but didn't take the 63 right after? Everyone I know who took the 7, 6, 79 etc etc usually always take the 63 right after. It's like the supplement exam for any main series license.

My intention was to obtain them as resume boosters but I guess that doesnt work . None of them are even needed for my current position, my real purpose for getting them was to help me out out/above.

That guys crazy for that, I dont think I would ever actively try and leave the industry if I spent all that time studying for these exams. I dont even think I would do it now and I only have two, that plus I do have an interest in the industry as a whole.


They let you pick the order in which you take them, and there was a job that I wanted that had the 24 as a desired license in the description so as soon as I got my 7 I got the 24 a month and a half later and posted for the job. Then since I had my 7 and 24, everyone just said to kill two birds with one stone and take the 66 instead of the 63 and so I listened to them on that.

 

[Hank Scorpio]

My intention was to obtain them as resume boosters but I guess that doesnt work . None of them are even needed for my current position, my real purpose for getting them was to help me out out/above.

That guys crazy for that, I dont think I would ever actively try and leave the industry if I spent all that time studying for these exams. I dont even think I would do it now and I only have two, that plus I do have an interest in the industry as a whole.


They let you pick the order in which you take them, and there was a job that I wanted that had the 24 as a desired license in the description so as soon as I got my 7 I got the 24 a month and a half later and posted for the job. Then since I had my 7 and 24, everyone just said to kill two birds with one stone and take the 66 instead of the 63 and so I listened to them on that.

Usually people take the 63 a week after taking their 7 or 6. I know some people who had to take the 6 (commercial retail bankers) and they took their 63 a week or a few weeks after taking the 6.

 

[bhzmafia14]

The MSSB FAA program will pretty much pay you to take the Series 7 and 66 in your first year

That's another reason why I asked you about it Hank. I'm currently in the hiring process and the program suppose to start in January. Even if I go through this program for three years and leave, just getting a major bump in salary from what I'm making now, bonuses, incentives,learning more about the market seems worth it? I also got a call from FedEx Corp. about their Financial Analyst position.

Since I'm currently in a MBA program and will look to either obtain my CPA or CFA in the future, would it be better to choose the analyst position > the advisor if I was offered both jobs?

 

[fontaine]

Article I read...

Stanford MBA got over $500k starting salary.

Around $350k bonus makes up much of that...

 

[Hank Scorpio]

The MSSB FAA program will pretty much pay you to take the Series 7 and 66 in your first year

That's another reason why I asked you about it Hank. I'm currently in the hiring process and the program suppose to start in January. Even if I go through this program for three years and leave, just getting a major bump in salary from what I'm making now, bonuses, incentives,learning more about the market seems worth it? I also got a call from FedEx Corp. about their Financial Analyst position.

Since I'm currently in a MBA program and will look to either obtain my CPA or CFA in the future, would it be better to choose the analyst position > the advisor if I was offered both jobs?

The MSSB program sounds much more lucrative, but just remember--once/if you leave, you won't be able to take all your clients with you. They stay with MSSB. Basically meaning--you're going to have to build your book all over again. Also, from what I've read, being a brother for those companies suck. The pay out isn't as great as it seems.

The FedEx job won't pay you as much, but it's a lot more secure than MSSB. I think you should stick with the advisor role, just because it's more in line with what you want to do and where your credentials are placed. I would recommend you move into asset management instead of being an advisor. With your MBA and maybe someday getting a Series 24--the transition can be possible.

Sorry for the late response.

Article I read...

Stanford MBA got over $500k starting salary.

Around $350k bonus makes up much of that...

Yeah, this ins't that uncommon. Again, it really depends where the guy got a position and what his title is along with responsibilities.

I would probably say $500k a year coming out with an MBA from a top-tier is BEST CASE scenario. The average would probably be around $150k a year without adding any kind of bonus.

 

[johnnyredstorm]

How do you feel about SolarCity's fundamentals? And Tesla for that matter. Seems like those tax credits Musk has gotten have added some unnecessary value to their stocks.