Ask an Associate working in Private Equity on Wall Street anything

[fontaine]

I've seen cats on WSO get down on a 16 year old kid once. :x

 

[Hank Scorpio]

It doesn't get posted frequently, because everyone is working

 

[Hank Scorpio]

Haven't been on NT for awhile, but thought I'd give the thread another bump.

 

[spaceshipj]

Hey so I'm currently going to a community college, and transferring to a state or university to finish my studies and ultimately a bachelor's degree. If I was to receive a bachelor's in Accounting, how would I go about getting into finance? Or should I switch to finance emphasis once I transfer?

 

[Hank Scorpio]

Hey so I'm currently going to a community college, and transferring to a state or university to finish my studies and ultimately a bachelor's degree. If I was to receive a bachelor's in Accounting, how would I go about getting into finance? Or should I switch to finance emphasis once I transfer?

I apologize for the late response. I hadn't realized there was a post.

Most of the time you can make the switch from accounting to finance, but you're going to have to make a strong case for yourself. My best advice for you would be to get some finance related internships to show interviewers you're serious about finance and willing to make the transition. From my knowledge and what I've heard, having an accounting degree is a lot more versatile and secure than having a finance degree.

I know you said you don't want to do accounting, but I'm remiss to not ask--why do you want to make the change? What made you go into accounting in the first place? Why finance?

When you go for your bachelor's degree--make sure you're grades are top-notch, hit up the career centers on-campus and make sure you network as much as you possible can. Be on the look out for the recruitment events and keep an eye and ear out for any developments. Also, try to find alumni that's involved with accounting/finance or someone who made the transition from accounting to finance and pick their brain. You never know how well you can rub off on someone and they just might groove with you enough to hook you up somehow someway.

______________________________

Someone sent a very thoughtful and interest PM recently and asked some great questions. I sent him the PM, but I figured the rest of the NT community can benefit from reading his question and my response.

Yeah, I'd love to know why you wanted to get into IBD. Were there particular deals that you felt you learned the most from (no need for specific names)? What did you enjoy most about IBD (I understand the hours were hell)?

Robert,

Honestly, man--I got into IB for three reasons:

1. It sort of fell into my lap. An old professor of mine had me meet one of his good friends and he recommended that I seriously look into IB. Turns out the guy was an all-star for the group/company I eventually worked for and I landed a Summer Analyst position in his group.

2. I'm not going to lie. A really big reason why I did it was because of the money. My family were immigrants from a third-world country and when they immigrated to NYC, they didn't have much. I saw how much they struggled and sacrificed for me and my sister to have a decent life here in America. I wanted to help them out and IB was a great way to have an immediate impact.

3. I was always interested in banking, deals, mergers & acquisitions. It really started for me by the end of my Junior year in High School. I got more into corporate deals and business and the whole world fascinated me.

At the end of the day, these are the real reason why I got into IB. It wasn't because it provides me exposure or "stimulates" my mind and mentally challenges me. I mean yeah, IB does do all that. But let's be honest for second--most people who go into IB have their own personal reasons and for the most part those reasons lean towards to the personal finances.

I've recruited for my old company last year and I'm recruiting again this Fall for my new company. I've heard almost every story/reason you can hear; some of which are the reasons I've listed above. The kids who really catch my eye and attention are the kids who are honest and have nothing to hide. The ones that show me that they have the "fire in the belly" to be a banker. The ones who can look at me dead in the eye and be honest about what they want, why they want it and what they will do to get it. Those are the kids that end up making it in the long run. Hell, if they don't end making it in IB, they'll eventually end up making it somewhere else. Why? Because they're comfortable with themselves and not afraid to show the world this. Now, I'm not saying you gotta be brash and brazen and be completely "unplugged", but there's a difference between being comfortable in your own skin with confidence and being cocky and arrogant.

People ask me all the time what I enjoyed most about IB (sometimes I get asked the opposite). I always tell them that I enjoyed working with my group the most. Those guys I worked with saw me through my toughest times and my greatest time. They helped me grow not only professionally, but also personally. The camaraderie we built as a group taught me to trust others and learn that no matter how good someone is individually, it will never over power the efficiency and productivity of a collective group of hard working individuals.

I'll be honest with you. I worked on several deals within the past 2 years and the ones that immediately come to mind are:

1. The Facebook IPO
I was transferred to the group that worked on it. I learned so much about the tech world (I was already a tech buff), but i got to learn how the business side of it all ran. I got to really get a feel for the politics and arrogance some of the people in the tech people have as well. People have some HUGE egos. And I always thought bankers had the biggest ego's.

2. Softbank merging with Sprint Nextel
I was back with my old TMT group and I missed them dearly. This was probably the biggest deal I've ever been apart of in my life. So much research, countless hours of edits and accommodations being made, couple of weeks worth of all-nighters, being selected amongst a limited group to go to Japan to meet with clients and the TMT group there, not seeing my friends or family, and almost watching the deal fall through all to end with a nice fat bonus at the end of the year.

3. Apple/Authentec deal
This was probably one of the most hyped deals I've worked on. Almost everything that could've gone wrong in a deal almost did Seen a lot of mistakes done, but learned plenty from it.

4. Microsoft buys Skype
I was excited about this, because I knew in my heart of hearts that this would be a game-changer for Microsoft. Not only that, but I was thinking Microsoft should've bought Skype years ago. It was great to see my ideas come to fruition. I met with some of the most powerful tech guys in the world, some of which you already know or heard of. I had a chance to talk to them collectively one-on-one briefly and they all gave me some great advice. This was more of a personal growth experience than a professional one.

I know this is a long response, but I hope it can be of help and give you a clear idea of what you want to do.

Most sincerest regards,
Hank

 

[antidope]

I had a chance to talk to someone who worked on the Facebook IPO, he says its one of the greatest things he's ever done. My questions were geared towards the whole underwriting process and what each syndicate member does, got a bunch of good info out of that.

 

[Hank Scorpio]

I had a chance to talk to someone who worked on the Facebook IPO, he says its one of the greatest things he's ever done. My questions were geared towards the whole underwriting process and what each syndicate member does, got a bunch of good info out of that.

Was he part of the MS or GS side? I might know him

 

[potatoglasses]

Entering into my Accounting major in the a few weeks. Posting to come back later.

Would majoring in Accounting or Finance be more beneificial in your eyes?

Would having a high major GPA, yet a low non-major GPA be a big ding?

I currently work in an intern position at a government office in the Budget sector of the office, but don't see this as where I wanna be after college. Should I be looking
towards more summer analyst type internships or just continue with this position? I've been here for 2.5 years so far, and am slowly realizing the end result isn't
what I'm looking for.

 

[antidope]

I had a chance to talk to someone who worked on the Facebook IPO, he says its one of the greatest things he's ever done. My questions were geared towards the whole underwriting process and what each syndicate member does, got a bunch of good info out of that.

Was he part of the MS or GS side? I might know him

He would not say, I assumed Morgan Stanley though for what reason I couldnt tell you, just the feeling I got from him. Wish I remembered the guys name, I would just google him.

 

[Hank Scorpio]

Entering into my Accounting major in the a few weeks. Posting to come back later.

Would majoring in Accounting or Finance be more beneificial in your eyes?

Would having a high major GPA, yet a low non-major GPA be a big ding?

I currently work in an intern position at a government office in the Budget sector of the office, but don't see this as where I wanna be after college. Should I be looking
towards more summer analyst type internships or just continue with this position? I've been here for 2.5 years so far, and am slowly realizing the end result isn't
what I'm looking for.

Determining whats more "beneficial" between an accounting degree vs a finance degree is subjective. In my own personal opinion, I feel like you can do a lot more with an accounting degree. The job market is much better and the occupation is a lot more secure. Now, if you want to talk about which job is more interesting is up for debate

In the long run, you can potentially make way more money in finance depending on where you end up and what level of finance you do. I know some senior accountant and/or CPA's who make a GREAT living and are very comfortable.

In most cases, especially with the BB's--having a low GPA overall is enough reason to ding someone. This is why it's always important to always put the higher GPA on your resume.

You really do need to start looking for some more finance related internships. You have some solid experience working in a government office, but in order to show interest in finance and prove yourself--you need to have finance related experience.

I had a chance to talk to someone who worked on the Facebook IPO, he says its one of the greatest things he's ever done. My questions were geared towards the whole underwriting process and what each syndicate member does, got a bunch of good info out of that.

Was he part of the MS or GS side? I might know him

He would not say, I assumed Morgan Stanley though for what reason I couldnt tell you, just the feeling I got from him. Wish I remembered the guys name, I would just google him.

Yeah, he most likely did work for MS. The people at GS have too much pride to say they were part of the Facebook IPO back then when the stock was plummeting. Those underwriters worked really really hard though. They did most of the leg work for us and kept the wheels moving during the whole process. All work, no glamour. It takes a certain kind of person to be okay doing that. I know I wouldn't be able to work as hard as they do and not enough recognition.

Those fees after the IPO was though

It was a great bonus year for me

 

[soleasian]

Entering into my Accounting major in the a few weeks. Posting to come back later.

Would majoring in Accounting or Finance be more beneificial in your eyes?

Would having a high major GPA, yet a low non-major GPA be a big ding?

I currently work in an intern position at a government office in the Budget sector of the office, but don't see this as where I wanna be after college. Should I be looking
towards more summer analyst type internships or just continue with this position? I've been here for 2.5 years so far, and am slowly realizing the end result isn't
what I'm looking for.

dude if you dont want to be there, just leave, or stay until you get an offer elsewhere. I know people say job hoppers arent looked well upon, but you've been there 2.5 years which is pretty long considering you cant really work until late high school or early college and since you're still in school, you can choose to hop around more. Staying too long at a place that wont benefit you is no good.

 

[d d t]

x2 soleasian the day you wake up and say I don't want to go to work is the day you quit to explore other opportunities

 

[fudgemoney24]

I have about 4k saved up. What would be the best way for me to invest it? Should I just keep saving until I have more capital or is this enough to make any money in stocks? Thanks in advance.

 

[d d t]

I have about 4k saved up. What would be the best way for me to invest it? Should I just keep saving until I have more capital or is this enough to make any money in stocks? Thanks in advance.

First and foremost I would build up your emergency fund. This fund should be able to cover at least 6 months of expenses. While you're building that get yourself up to speed on various investment vehicles for retirement such as IRAs.

 

[Coromanti]

How does off shore accounting work?

How do I get a swiss bank account?

How do I invest in:

-stocks

-bonds

-startups

-anything else worth investing in?

How to make decent (or better) profit on short term investments with low amount of cash?

How short term invest in general?

 

[soleasian]

you can google most of those bruh
But hiding your money in swiss bank accounts is no good anymore since a bunch of them are cooperating with the us govt now

 

[Top Boy]

you can google most of those bruh
But hiding your money in swiss bank accounts is no good anymore since a bunch of them are cooperating with the us govt now

Yeah just saw this on Bloomsberg a couple days ago. IRS is cracking down on offshore accounts... Switzerland is no longer keeping the privacy of account holders.

 

[potatoglasses]

Determining whats more "beneficial" between an accounting degree vs a finance degree is subjective. In my own personal opinion, I feel like you can do a lot more with an accounting degree. The job market is much better and the occupation is a lot more secure. Now, if you want to talk about which job is more interesting is up for debate

In the long run, you can potentially make way more money in finance depending on where you end up and what level of finance you do. I know some senior accountant and/or CPA's who make a GREAT living and are very comfortable.

In most cases, especially with the BB's--having a low GPA overall is enough reason to ding someone. This is why it's always important to always put the higher GPA on your resume.

You really do need to start looking for some more finance related internships. You have some solid experience working in a government office, but in order to show interest in finance and prove yourself--you need to have finance related experience.

I see. In my earlier days of college, I didn't initially know what I wanted to do, and kind of goofed around without any focus, and eventually fell upon Accounting and realized I like numbers and number crunching wasn't really a bad thing to me. I definitely will keep in mind that I should be looking for more finance related internships. I don't really have very high aspirations, just to make a comfortable living and be able to enjoy the hobbies I like. That's not to say I won't mind making a great living, but I like to live a relatively simple life, and comfortable is what I seek. I think I'll try to look into Accounting as a major with Finance as a minor, or something along those lines.

dude if you dont want to be there, just leave, or stay until you get an offer elsewhere. I know people say job hoppers arent looked well upon, but you've been there 2.5 years which is pretty long considering you cant really work until late high school or early college and since you're still in school, you can choose to hop around more. Staying too long at a place that wont benefit you is no good.

It's not quite that I don't want to be here, the job itself is easy, and I learn alot. It's also really flexible for my school position and has been a great internship for me. The internship offers me a conversion into a full-time government budget position once I graduate, which is one of the reasons I still hold onto this position. I'm not against leaving, I just haven't really been looking, as this is a pretty comfortable college job for me with plenty of benefits, I just don't see myself being here 4 or 5 years down the line after I graduate.

 

[d d t]

I see. In my earlier days of college, I didn't initially know what I wanted to do, and kind of goofed around without any focus, and eventually fell upon Accounting and realized I like numbers and number crunching wasn't really a bad thing to me. I definitely will keep in mind that I should be looking for more finance related internships. I don't really have very high aspirations, just to make a comfortable living and be able to enjoy the hobbies I like. That's not to say I won't mind making a great living, but I like to live a relatively simple life, and comfortable is what I seek. I think I'll try to look into Accounting as a major with Finance as a minor, or something along those lines.
It's not quite that I don't want to be here, the job itself is easy, and I learn alot. It's also really flexible for my school position and has been a great internship for me. The internship offers me a conversion into a full-time government budget position once I graduate, which is one of the reasons I still hold onto this position. I'm not against leaving, I just haven't really been looking, as this is a pretty comfortable college job for me with plenty of benefits, I just don't see myself being here 4 or 5 years down the line after I graduate.

Moomoo looking at what you said, looks like you just want more out of your position. Working for the govt is not a bad gig, hold onto it and see what they offer you after you graduate. 1 year into the position if you don't like it, then move on.

I'm in a similar position as you... But I've graduated and have been in the accounting field going on 3 years.... And I'm at that stage where I've learned everything I can in my current position and it's time to move onto other opportunities and challenges....

Best of luck to you and your endeavors.

 

[ridingonlorenzos]

Hank,

I believe I am in a unique situation and would love to hear your opinion and perhaps some advice.

I currently work in a back office entry level analyst role dealing with the pricing on securities at a major Canadian bank. I deal primarily with domestic and foreign equities in a small team with relatively significant responsibility. I kind of got lucky ending up in this gig without an undergrad degree. I come from an accounting background from a community college. Everyone else I went to school with ended up in jobs without much excitement, like book keeping roles. I was a bank teller in college and used my position in the bank to network with people in order to get out of retail and into something with more prospect.

I am quickly realizing that I may be stuck at this level until I get a degree under my belt. I have reached out to mid-level managers about what they do and to build my network, and they all seem to agree that not having a degree hurts. I have enrolled in night and online classes at a university in the city in a Bcomm program, It is not the university with the best reputation, but it will allow me to transfer more credits from college and allow me to take my courses and night and online in order to keep working full-time. I anticipate it may take me 2-3 years to get enough credits to get a degree. I am obviously focusing on keeping my GPA high as possible now that I really see what impact a high GPA has on things like getting better jobs and into a good business school later on. In the meanwhile, in order to increase my marketability I am also pursuing the CFA. I am currently a level 1 candidate and am planning to write in December. I hope to write level 2 in June'14.

My manager and her manager keep telling me that I am overexerting my self and possibly setting myself up for failure by pursuing 4 university courses and CFA level 1. However, I am 26 and don't want to stay back office forever. I want more money, more responsibility, and more respect. I want to increase my marketability and jump into a higher level role within the year. Eventually, I would love to get into IB, portfolio manager or something else that is respectable, lucrative, stimulating and lucrative. Like you, I come from an immigrant family without much money, so I think our motivation is similar in that sense.

Do you think I am making the right decisions in order to get to the places I want to go in the finance world? Do you have any other advice or comments?

Thanks for taking the time to read this.


P

 

[rg3ftw]

One of the best threads I've read in awhile. Thanks Hank.

 

[d d t]

So nice that we have people on this forum that share the same aspirations.

@ridingonlorenzos

Keep doing what you're doing man and get that CFA. If people tell you you're over exerting yourself, work harder. No room for negativity, give this a listen

Go get em man!

 

[pharelfor3]

this thread makes me feel like i'm doing something wrong with my life

 

[pharelfor3]

Two quick questions.

1. Not to generalize but why are rich people so cheap. I mean I have this friend who works in finance. makes around 10 times more then I do. 4 of us were out to eat and the bill comes. it's $84 dollars and we decide to split it four ways. He nitpicks and says since his order was $2 last then ours he should pay less and then attempts to stiff the tip for the waiter. I mean dude is is the mid 6 figures.

2. How much yambs are gotten from your job. Do you club/barhop and ball out for yambs. Do you ever get yambs from the overworked colleague at the job? Do you pay for it??

srs questions btw

 

[coreyw]

1. Don't know if it's the case, but if some people don't have a certain amount in the bank, they feel broke.