Was a great meet indeed, especially meeting the PG HQ guys and some of the oldies, and of course, the snacks, the pizzas and the gossips!
Didn't know PG HQ had an amazing band; they really made the evening a memorable one.And perhaps for the first time, there were more MBA grads/alumni than aspirants in a PG meet.
Overall the meet rocked...
Sounds like it will be fun... I will also try to make it.
@Navneet023, include me in your PM list...
Perception cannot be changed, at least in campuses people were terrified of IBDs and most of them preferred to go to trading instead. I have never heard horror stories in S&T;, at least they havent been documented well. On the other hand, blogs like www.leveragedsellout.com and Understanding Investment Banking | Mergers & Inquisitions recount IBD horror stories..
And regarding the timeframe, 45 days is a very typical timeframe from getting the mandate to at least taking the deal to PEs, without counting the time for pitching of course!!!!!
Lets talk about numbers, a big I bank executes around 178-190 deals in a fiscal year (example - JPMorgan Chase, Bank of America), among these many deals, 30-32 deals are M&A;, probably 15-16 are LBOs /MBOs, given that - I understand a person involved in 16 odd deals need to grind for 15 hours for a couple of months, however on an average there is no single team in I banking section, which spends 15 hours for whole 6 months - leave alone 12 months for the time being. For relationship deals, same person will spend probably just 3 hours and that too bank meeting. Just to point these numbers (178-190) is for big I bank - small I banks get to execute 50-55 deals in an year! (probably even less or more, this could be a good average)
If I may still choose to disagree
actually trade and sales units in an ibank are called as investment bankers. Commercial and corporate banks also have a sales and trading unit, and likewise they cannot be termed as ibankers. But, in an ibank, all sales and trade people are definitely called investment bankers. Hope this helps.
@anandv - I didnt forget Edelweiss, they are very small in Indian I-Banking space, they r decently sized on the trading side.... I did miss one Indian IB though, DSP ML, but only 5% stake is with the Indian partner now!!!!!
Jackal Saysaah i forgot about the indian investment banks.. they are bigger than the indian arms of global IBs.. but if you look at the volume of business in India and the no. of employees in Indian IBs and no. of employees in firang IBs working on Indian investments.. dont u think the no.s are way too small and insignificant.. In fact if you look at the work outsourced by global banks (read KPOs both captive and 3rd party) it's a lot more.. i dont have figures to substantiate this but correct me if i am wrong..
@suraj: well abt the Mck recruitment thing.. i have heard different views on this.. how many of those 50 are for the knowledge center??
Indian I-Banking scene is not as big as US or EU but still it isnt small too. There are many Indian IBs like Kotak, Enam, JM & Avendus which have a nearly 100 strong IB team, though Indian arms of foreign IBs r still very small. Even in the bear market they recruited pretty agressively this year from the B-School campuses.
And regarding consulting, Mck - India has hired 50 new MBA grads for India this year!!!!!!
Normally even from IITs, bulk of the ppl are hired for back-end and 1-2 for front end. It just might be the case that they have done that in SRCC too. But I'm sure bulk of the hired ppl r in KPO only as Lehman's Investment Banking team size is extremely small in India.
Coming to salaries, a newly hired MBA grad in Lehman front office gets about 8000-10000 USD per month working in Mumbai apart from the bonuses, which can shoot your net to anywhere around 1.5 crores. I personally know a guy who got this much money in Lehman about a year back when the going was good. So a net pay of 14L including bonuses for an analyst is still cost savings for Lehman