Newsletter Volume 4: December 2023
Letter from AD Leadership
Dear Future 2025 IB Summer Analyst,
Welcome to the gateway of your future in finance! As you stand on the brink of the 2025 IB Summer Analyst recruitment process, our curated newsletter awaits, serving as your compass through the intricacies of this transformative journey.
🔍 "Get Up to Speed”: Investment Banking Recruitment: Unveil the blueprint encompassing timelines, interview intricacies, and the vital role of Diversity and Inclusion Programs. Your guide to securing that coveted summer internship.
📊 "Definition of the Month": EBITDA vs. Net Income: Delve into the nuanced world of financial metrics. Understand when to wield EBITDA and when to leverage Net Income for a strategic advantage.
🌇 "Day in the Life": Immerse yourself in the daily rhythm of an Investment Banking Analyst in the heart of finance, New York City. From dawn's emails to midnight submissions, experience the dynamic ebb and flow firsthand.
📚🎙️ "Recs! Recs! Recs!": Elevate your knowledge with handpicked book and podcast recommendations, offering insights from industry luminaries to shape your perspective.
Remember, challenges are stepping stones to triumphs. Your journey unfolds here—subscribe to our newsletter for monthly insights and exclusive content. Here's to the future 2025 IB Summer Analyst Class —may your determination fuel your success!
Warm regards,
Jasmine Anklesaria ✨📈
Getting Up To Speed: IB Recruitment: Timelines, Interview Process, DEI Programs, and More!
Written by AD Alumni Fellow Brianna Sypolt
Welcome to Access Distributed’s newsletter on Investment Banking Recruitment! We will cover timelines, the interview process, and the importance of Diversity and Inclusion Programs.
Timelines
Investment banking recruitment typically follows a structured timeline, but it can vary depending on the region and firm. It's also important to note that every year this timeline has increasingly started earlier and many diversity programs accelerate this process all together. In general, if you are aiming to get an IB internship after your Junior year the process starts 1.5 years earlier during your Sophomore year! Here's a general overview to help you plan your process:
Networking: We recommend beginning networking with investment banking analysts prior to the interview process. While there is no set date to start, it's always better to give yourself a few months due to the busy schedules of analysts.
Application Deadline: Every bank is different however most will begin opening their applications between January-March of your sophomore year. Boutique banks tend to be on the earlier side of this with bulge bracket banks shortly behind.
Interview Process: After networking and submitting your application the actual interview may take some time with most final “Superdays” wrapping up in March.
The Interview Process
The investment banking interview process can be challenging but highly rewarding. It generally consists of multiple rounds:
Resume and Cover Letter Screening: Your initial application materials should be carefully crafted to showcase your qualifications and interest in the role.
First-Round Interviews: These are typically conducted on-campus or via video conference and focus on fit and behavioral questions. Be ready to discuss your background, motivation, and why you're interested in investment banking.
Superday: Successful candidates are invited to a superday, which involves multiple interviews with different team members. You'll be expected to answer technical questions related to finance, accounting, and valuation.
Offer: If you perform well on the Superday, you may receive an offer. Typically you will be notified a few days after the Superday with a phone call and a letter following it.
To succeed, preparation is key. Review technical concepts, practice your answers, and network to gain insights into the firm and industry.
Diversity and Inclusion Programs
Diversity and Inclusion (D&I) are increasingly becoming core values in the finance industry. Many investment banks have robust D&I programs to promote a more inclusive workplace. They come in many different shapes in sizes but follow a similar pattern of offering additional technical training, networking opportunities, and accelerated interviews for qualified students from underrepresented backgrounds. Here's why they matter:
Enhancing Talent Pool: D&I programs attract a broader range of candidates, bringing diverse perspectives and talents to the table.
More Representation: Investment Banking has typically been a very underrepresented career. In order to change this action must be taken. This will benefit everyone as studies show that diverse teams are more innovative and better at problem-solving.
Social Responsibility: D&I programs align with social responsibility and ethical principles, which are crucial in today's business landscape.
In conclusion, our journey through Investment Banking Recruitment has unveiled the strategic timelines, intricate interview processes, and the pivotal role of Diversity and Inclusion Programs. As the finance industry evolves, the emphasis on these programs not only enriches the talent pool and fosters more representation but also aligns with essential social responsibility and ethical principles—guiding you towards a future where diversity propels innovation and problem-solving in the dynamic world of finance. Prepare diligently, network passionately, and embrace the transformative power of inclusion on your path to success.
Definition of the Month: EBITDA vs. Net Income
Written by AD Alumni Fellow Leonardo (“Leo”) Ting
Understanding financial metrics is essential for investment banking (IB) recruiting, as they play a key role in company valuation and financial analysis. Two commonly compared metrics are EBITDA and Net Income.
EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a measure often used to approximate the cash flows generated by a company's operations.
EBITDA focuses on the profitability of a company's core operations without the impact of capital structure, tax rates, and non-cash accounting decisions. This metric is popular among investors because it provides a cleaner view of operational performance by excluding expenses that can obscure how the company's core business is performing.
Net Income, also known as the 'bottom line,' is the profit remaining after all expenses, including interest, taxes, depreciation, and amortization, have been subtracted from total revenue. Net Income provides a comprehensive view of a company's profitability, including the impact of its capital structure, tax strategy, and other non-operational factors. It's the figure that is often used to determine the earnings per share and is critical for assessing the company's profitability for shareholders.
For IB recruiting, understanding the difference between these two figures is crucial. EBITDA can be useful for valuing companies with significant debts or for comparing companies across different tax regimes or asset intensities. In contrast, Net Income is vital for understanding the actual profitability and is often more scrutinized in the context of a company's ability to return value to shareholders.
A Day in The Life
Meet: Ayodeji (“Ayo”) Akande
IB Analyst at PJT Partners
8:00-8:30 AM: Rise and Shine!
First order of the day: Tackling those time-sensitive emails. There's always the chance of getting urgent requests from my MD or Partner bright and early.
Now, let's get ready! I usually opt for a dress shirt and pants, reserving the suit for those important meetings.
9:30 AM: Commuting Vibes
Living in Brooklyn means I've got a 30-minute subway journey to the office. Even though it's a bit of a trek, Brooklyn is a blast!
Upon reaching my desk, the first thing I do is jot down all the tasks on my plate for the day. With usually 4-5 projects in the mix—live deals, pitching, or internal work—I prioritize based on urgency and importance.
After ticking off my to-dos, I kick off my day around 10 am. There are often comments from my Associate or VP that need attention in the morning, so I dive into that, sending it off by around 12:30.
Lunch Break! Time to Fuel Up
Lunchtime usually means hanging out with my analyst class. Midtown has some great food courts, and my go-to spots are Hugh, Duke, and Urbanspace.
Post-lunch, I gear up for upcoming meetings. I spend time preparing to discuss the materials and models put together by the junior team. Between 2 pm and 6 pm, I could be in 3-4 meetings. Sometimes I'm presenting and leading the discussion, while other times, I'm taking notes.
After the meetings, I have a quick debrief with associates from different teams I’m on to plan the remaining action items for the day.
Dinner Time! Bonding with the Team
Dinner is always a highlight as I get to connect with my class. We usually gather in a conference room, turning colleagues into close friends.
Back to the Grind!
If it's a good day, we're sending materials to the senior team by midnight. On tougher days, we might find ourselves grinding through the late hours or even working into the early morning. It's all a bit unpredictable.
In the grand scheme of things, the job is a rollercoaster with its fair share of highs and lows. Still, I'm grateful for the chance to soak in a wealth of knowledge so early in my career!
RECS, RECS, RECS
What we are reading, who we are following, what we are listening to, & more!
Curated by AD Alumni Fellow, Kanan Weitzman
Newsletters:
Exec Sum: Your shortcut to the latest in finance insights.
High Yield Harry : Unravel the complexities of credit investing.
Books:
"The Most Important Thing Illuminated" by Howard Marks: Gain invaluable insights into investment philosophy and decision-making from a seasoned pro.
Podcast/Youtube:
Guggenheim Investments Macro Markets Podcast: Navigate the macroeconomic landscape with engaging discussions.
