Working in the City An introduction to investment banking, fund management and venture capital Christiian Marriott 22 nd October 2001

Contents What the City comprises Capital markets Fund management Insurance Venture capital and private equity IT Support/ancillary services What its about Getting in Career paths Lifestyle/Money or Money/Lifestyle

Careers in the City - overview Back office – administration and custody

Capital markets/corporate finance: What it’s about Trading, selling, researching, broking any financial instrument Equities – shares in companies Debt – loans to governments and companies FX – currencies Derivatives on all of the above Either for clients (fee or commission) or for own profit Commercial and investment banks, stockbrokers, boutiques, specialists

Capital markets/corporate finance: What you’ll be doing Research Analysing and writing about sectors, countries, currencies etc. Trading Buy low and sell high Broking/sales Sell e.g. the research, your clients shares, new financial instruments to companies Relationship management

Capital markets/corporate finance: Getting in Graduate training/milkround Accountancy or law (corporate finance) MBA graduate intake 2-3 years in a commercial role in industry (for corporate finance) Strategic consulting

Capital markets/corporate finance: What employers look for Numeracy can be acquired… Good communication skills (for client- facing roles) Respond well to pressure/deadlines Computer literacy Languages, for some roles

Capital markets/corporate finance: Career paths 2-5 years post graduation – good time for MBA Early specialisation will be tend to be limiting, e.g. bond traders will stay in the bond markets Corporate financiers can go into industry, venture capital or consulting

Capital markets/corporate finance: Lifestyle and remuneration Lots of: Competition Pressure Money Travel/overseas postings Not much: Job security Life

Fund Management: What it’s about Lots of desktop analysis, company reports Scrutinising brokers’ and investment bankers’ research Meeting company managers Making significant buy/sell decisions Deciding which way to “bet” on takeovers Structuring and marketing Fund products

Fund Management: Getting in Graduate training Learn financial statements and basic company analysis Accountancy training or CIMA Industry Benchmark exams: IMRO and CFA

Fund Management: What employers look for Good analytical skills Numeracy requirements not too strong Ability to question and be cynical Good writing and presentation skills Ability to make decisions and stick by them – embrace responsibility

Fund Management: Career paths More flexibility to move between mainstream asset classes, e.g. European shares to UK bonds Move from managing funds into creating and marketing new products (or vice versa) Move into new areas such as hedge funds or private equity

Fund Management: Lifestyle and remuneration More balanced than capital markets or corporate finance in terms of money and pressure Lots of exams (compliance) Travel not guaranteed, very City orientated

Venture capital/private equity: What it’s about More active, hands-on, fund management Investing in private companies/new technologies: Life sciences, optical networking devices Fishing fleets and bottled gas distribution Funds are difficult to raise, specialist teams

Venture capital/private equity: Getting in Accountancy Strategic consultancy Industry Corporate finance/M&A Science and technology (for venture funds)

Venture capital/private equity: What employers are looking for Good company analysis, but more in- depth, experience “at the sharp end” in companies Financial understanding, good financial modelling rather than advanced maths Good people skills, more than other sectors of the City Languages increasingly attractive

Venture capital/private equity: Career paths More of a destination than a crossroads Back out to industry or banking if required Long term employers because of incentive schemes

Venture capital/private equity: Lifestyle and remuneration Very competitive, but not too pressured in terms of hours/weekends Lots of money if you pick the right firm Job security OK once you’re established Lots of contact with people Career base usually London but lots of travel

Support Services: What it’s about Financial PR Headhunters/recruitment consultants Information providers Information technology Journalism/specialist publishing In-house marketing for banks etc.

Support Services: Getting in Some of the bigger firms are graduate employers, but no milkround, lots of small firms, a few agencies Work experience vital for PR and journalism OK for 2 nd job after getting IT/research skills etc.

Support Services: Lifestyle and remuneration All pressured, but none is equivalent to the most intense investment banking roles Money usually not as good as other areas, except IT in general and select roles in other areas Generally less travel, very London- focused roles

Conclusions A huge career landscape, but don’t be daunted Accountancy made sound boring but is an excellent start and keeps your options open You can plan ahead but be aware that anything can happen Culture is everything – same job in different companies can be world’s apart

How I got here 1992: Graduated in French and History and joined Acquisitions Monthly, leading trade magazine for M&A sector as trainee reporter 1996: joined Campbell Lutyens & Co., small corporate finance house 2000: joined Mezzanine Management, one of my principal clients

Learning more Investment banking and fund management Venture capital/private equity

Contact Christiian Marriott Director, Investor Relations Mezzanine Management UK Limited