The Return of the M&A Mega Deal, IB Recruiting at an Inflection Point, Bonus Watch 2024

“Hard work beats talent when talent doesn’t work hard.” - Tim Notke

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• Global markets show divergent trends as U.S. stocks hit new records, while China aggressively eases monetary policy to combat economic slowdown. Despite mixed economic indicators, Chinese stocks surge in response to stimulus measures, and Wall Street awaits key inflation data.
• Citigroup and Apollo have formed a $25 billion private credit and direct lending program, combining Citi's banking expertise with Apollo's capital resources to enhance financing options for corporate and sponsor clients in North America, with potential for global expansion. (Apollo )
• U.S. M&A activity has shown significant growth in 2024, with the overall value of announced deals reaching over $1 trillion year-to-date, a 20% increase from 2023. Despite a 15% drop in Q3 deal values and a 29% decrease in the number of deals, private equity buyouts have surged nearly 40% to $530 billion, indicating strengthening executive confidence and improving financing markets. (Axios )
• Mega deals are making a comeback on Wall Street, with billion-dollar acquisitions by major companies like Mars and Verizon driving a 22% year-over-year increase in large transactions. (Business Insider )

Resource Center

Which Investment Banks Paid the Most in 2023?

Detailed Investment Banking Salary and Bonus Breakdown for 2023

This article presents a detailed breakdown of investment banking compensation for 2023, covering salaries and bonuses across different career stages. The analysis includes a comprehensive comparison of total average compensation across Elite Boutiques (EB), Bulge Bracket (BB), and Middle Market (MM) firms, revealing significant insights into industry pay structures.

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Recruiting Update

If you are looking to hire, please contact me [email protected] .

• The investment banking recruiting market is experiencing a subtle yet significant shift. While hiring activities appear subdued, especially for September/October, underlying factors are driving changes in talent demands. These include an uptick in U.S. mega-deal M&A activity and the expansion of private credit markets.
• Over the past 2 weeks multiple investment banks conducted RIFs in advance of third quarter close. As expected, most of the cuts were at the VP-Director level and were promotionally-based. Although things have picked up and deals are finally closing, fees have yet to come in. Banks are staring down expensive guarantees from new lateral MDs. Bonuses should be interesting this year.
• A recent LinkedIn poll of 427 respondents reveals that 72% of investment bankers are either extremely busy or experiencing increasing workloads. This disconnect between hiring patterns and workload suggests that the current lull in recruitment may be concealing a growing need for talent.
• While the market appears subdued, banks are active, focusing on deal execution rather than recruitment. Deal teams are lean. Very lean. Both institutions and potential candidates are exercising caution - banks are reluctant to expand quickly following recent economic volatility, and prospective hires are either too busy to recruit or delaying career decisions until after bonus.
• As deal flow continues to increase, particularly in large-scale U.S. M&A transactions and private credit markets, banks are likely to face mounting pressure to expand their teams. The challenge for financial institutions will be to balance their current lean operations with the need to effectively manage escalating workloads. This situation may soon catalyze a more active hiring phase in the investment banking sector.
• It will be interesting to see what happens at the Canadian banks and RayJay given their 9/30 FYE and earlier bonus payouts.

Prospect Rock Academy

Prospect Rock Academy is an educational platform dedicated to helping students, entry-level professionals, and career changers break into investment banking. We offer affordable online courses, one-on-one coaching, and a comprehensive newsletter covering recruiting and the current job market.

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The Ultimate Guide to Bouncing Back from No-Return Offer

Meridith Dennes, Managing Partner of Prospect Rock Partners, and Andrea Benson, Managing Director at the firm, discuss critical strategies for investment banking interns who did not receive a full-time offer post-internship. Andrea shares insights from her 15 years on Wall Street, including 11 years in campus recruiting, on how to professionally handle the disappointment, utilize reflection and feedback, and develop a plan to reenter the industry. The discussion includes practical tips on networking, securing recommendations, skill development, and crafting a narrative for future job applications. The course concludes with the importance of staying positive and casting a wide net in job searches, emphasizing that setbacks can be stepping stones to eventual success in the competitive world of investment banking.

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How to Land a Summer Internship in Investment Banking

Prospect Rock Academy introduces a cutting-edge course tailored for the next generation of investment banking leaders. This program equips ambitious undergraduates and MBA students with the strategic acumen necessary to secure a summer internship in investment banking.

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HOT JOBS 9/30

Please PM me on Linkedin or shoot me an email if you want to learn more about a specific role. Must have at least 1-year prior IB M&A experience. Visas (H1Bs, Stem, L1s, TNs) are tough in this market. No Recent Grads. Lateral hires only.

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Investment Banking Analyst 2/3 M&A (Elite Boutique)?

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Investment Banking Analyst 2/3 Healthcare M&A

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Investment Banking Restructuring Advisory Associate 1/2 (Elite Boutique)

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