FINANCE CLUB
• Overview of a financial transaction from
start to finish
• Discuss how companies interact with
investment banks and investors
• How do investment banks work
interdepartmentally
The Players
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Corporate Finance
Investment Banking
Capital Markets – Syndicate
Research
Sales & Trading
Asset Management
Private Wealth Management
Corporate Finance
• CFO and management team
– Forecast revenues/expenses - budgeting
– Invest in projects to maximize shareholder
value
• Treasury group
– Cash management
– Invest excess cash
• Controller
– Internal auditing
Investment Banks
• Raise capital for clients
– Cost effective distribution
• Financial advisory services
– Mergers & acquisitions
– Divestitures
• Merchant banking
Private Relationship
Coca-Cola
Investment
Bank
Investment Bankers
• Perform industry analysis
• Create quantitative models to determine
return on investment for all stakeholders
• Perform sensitivity analyses based on
different scenarios
• Offer the client different options
• Present Capital Markets - Syndicate with
proposal(s)
Capital Markets - Syndicate
• “Know” their respective markets
– Loan
– Debt
– Equity
• Work with bankers to determine whether deals are
viable to bring to market
• Specialists in marketing deals to investors
– Road shows
• Experts in pricing new issues to the public
Relationship
Capital
Markets
Syndicate
Coca-Cola
Investment
Banking
Team
Research Analyst
• Also known as a Sell-Side analyst
• Assists in marketing new issues with Syndicate
desk(s)
• Generates investment ideas for investors
• Conducts fundamental analysis of companies
within a sector
• Identifies factors and trends that drive a
company’s or industry’s future growth
• Comments on valuation of securities
Road Show
Research
Analyst
Capital
Markets
Syndicate
Coca-Cola
Investment
Banking
Team
Asset Management
• Known as the Buy-Side
• Represents the group of institutional
portfolio managers who selectively invest
cash on behalf of investors
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Mutual funds
Pension funds
Insurance companies
Hedge funds
Road Show
Research
Analyst
Capital
Markets
Syndicate
Coca-Cola
Investment
Banking
Team
Asset
Management
Sales & Trading
• Represents the public or secondary market
where investors can trade securities
• Sales communicates directly with the buyside community
• Traders or market-makers ensure an orderly
flow of securities by buying and selling
from market participants
Sales
• Manages the relationship with top clients
• Markets the firm’s new issues with analysts
• Communicates what the traders on the desk
would like to buy and sell
• Provides daily insight into:
– Company earnings
– New research reports
– Important news and events
New issues and secondary trades
Coca-Cola
Research
Analyst
Asset
Management
Capital
Markets
Syndicate
Sales
Investment
Banking
Team
Traders
• Risk manager for the firm
• Provides liquidity to the firm’s top clients
• Communicates to the sales force what
he/she wants to buy/sell and at what price
• Attempts to match orders to generate
riskless income
• Risks capital on a selective basis for
directional bets
Secondary Trading
Coca-Cola
Research
Analyst
Asset
Management
Capital
Markets
Syndicate
Sales &
Trading
Investment
Banking
Team
Private Wealth Management
• Develop and manage relationships with
wealthy investors
• Markets the investment services of the firm
• Advises clients on investment opportunities
• Analyze client portfolios
Secondary Trading
Coca-Cola
Research
Analyst
Asset
Management
Capital
Markets
Syndicate
Sales &
Trading
Investment
Banking
Team
Private
Wealth
Management
CONFUSED?
• Finance is a wide field offering many
different and exciting opportunities
• Learn more about the functional areas
• Pursue your interests
• Ask questions
• Second-years are your best resources