Investment Banking > Undergraduate/Master

Business Description

We have designed these sections to aid you in your understanding of what Investment Banking is, the services we provide to our clients and how we are structured. Investment Banking is often referred to in this industry as Corporate Finance. In the subsequent tabs we have asked for input from our Analysts/Associates/Summer Interns and also the recruiters describe the type of person we are looking for as well as the recruitment process.

What is Investment Banking?

Simply put, investment bankers are key strategic advisers to companies and governments, helping them to facilitate industry change and evolution in the global economy. Our advice is used to connect the right investors with the right companies, to facilitate industry development and to create the most efficient capital structures for companies.

What service do we provide our clients?

We provide leadership, guidance and advice on financial transactions across all industries in all corners of the world. People often think of Investment Banking as mergers and acquisitions (M&A), however Investment Bankers also execute leveraged buyouts (LBOs), financial restructurings, divestitures, initial public offerings (IPOs) and privatisations around the world. (Everything underlined will be linked to a glossary). By working with our counterparts in Corporate Banking, Capital Markets, and Global Transaction Services, we are able to provide our clients with the widest and deepest breadth of financial capabilities. These include underwriting and distributing equity, debt, and derivative securities for some of the largest international corporations, financial institutions and governments.

These transactions can often be cross border and multi currency. With our global presence, local expertise and deep industry knowledge, we are in a unique position to execute these transactions for our clients.

How we are structured?

The Investment Banking Division is broadly organized into three main groups:

• Country Groups

• Industry Groups

• Product Groups 

   

 Country Groups

Country Coverage Groups in Asia include China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. Each geography comprises of advisory teams (from Analyst to MD) within the Investment Bank that focus on providing advice to clients in their respective countries, or foreign clients seeking to invest in a country. Country Coverage bankers are country specific experts, who work in tandem with the product and industry coverage teams, to provide the best solutions and service to the clients of Citi.

Industry Groups  

Industry, or “Coverage” bankers blend their deep knowledge of a specific sector (Technology, Energy, Real Estate etc.) with detailed knowledge of the financials to provide quality advice to corporations on various strategic and capital raising activities. Each of these industries has extraordinary differences in the way they operate--structurally, legally and practically. The best way to service clients within these industries is to specialise in one particular sector. A technology banker, for example, needs to be nearly as technologically savvy as a Silicon Valley executive in order to determine which business combinations make the most sense, or what the key issues are in raising capital for a client.

Industry bankers partner with Product Group specialists to offer unique insights into the deal process.

Currently, our industry groups include:

• Energy, Power & Chemicals
• The Energy Group provides corporate finance solutions to companies across the oil and gas sectors. Our client base spans multiple sub-sectors: (a) Upstream companies own and operate oil and gas reserves and engage in exploration and production activities, (b) Midstream companies own storage and conveyance systems (pipelines) for oil and gas, (c) Downstream companies refine crude oil into finished products like gasoline and diesel, and (d) Oil Services consist of companies that provide equipment/services (e.g., drilling) related to exploration and production. Companies like ExxonMobil, BP and ChevronTexaco are called Super Majors due to their relative size and because their operations encompass multiple sectors (i.e., upstream, midstream, downstream).

   

  The Power Group covers the large electric and gas companies including utilities (such as Con-Ed, Duke, and Exelon) and power generators (such as Dynegy, AES, and Calpine). They also cover gas distribution companies such as KeySpan and NiSource. Citi is one of the leading Investment Banks in the power sector.

   

  The Chemicals Group is a franchise within the Global Energy, Power and Chemical Group. The chemical sector touches every segment of the economy and our clients produce materials that are used in products that serve end markets such as personal care, packaging, automotive, electronics, food & beverage, paints & coatings and agriculture. Our clients range from large diversified companies to smaller specialty players, to agricultural chemical companies as well as advanced material and industrial biotech players.

• Financial Institutions Group
• The Financial Institutions Group is a global franchise that consistently generates the largest revenues for the investment bank. The group allows for a diverse experience as it is structured into four coverage/product subgroups: Insurance & Asset Management (IAM), Banks & Financial Services (BFS), Electronic Financial Services (EFS) and Mergers & Acquisitions (M&A).

• Financial Entrepreneurs / Private Equity
• Financial Entrepreneurs Group - The FEG group covers leading financial sponsors providing committed financing to support their leveraged buyouts. It also assists portfolio companies with their exit strategies, including IPOs and sale mandates. The FEG group has relationships with the top private equity sponsors, as well as unparalleled market intelligence regarding the latest trends in the private equity market. FEG acts as a coverage and a product group, providing an unparalleled private equity knowledge base.
  
  As part of the FEG Group, The Private Equity Funds group is a leading global advisor and placement agent to private equity firms. They fully integrate their efforts leveraging private equity product expertise and relationships with virtually all private equity sponsors and investors.

• Industrials Group
• The Industrials Group is made up of three segments: Basic Industries (BIG), Industrial Manufacturing (IMG) and Transport, Infrastructure and Services (TIS)
  
  The Basic Industries Group (BIG) encompasses a wide range of corporates in the Paper & Packaging, Metals & Mining and Building Materials sectors. The breadth of experience provided by BIG is unusual and allows a banker to gain expertise in three diverse sectors. Bankers in the team are engaged in strategic discussions on industry-defining M&A transactions with some of the largest and best-known companies in the world. In addition to M&A, we are involved actively with our capital markets partners in client discussions on debt and equity financing. Private equity is an active investor in our space which allows for significant exposure to leverage financed transactions.
  
  The Industrial Manufacturing Group works with many of the world's largest companies within the Automotive, Diversified Industrials and Aerospace sectors. Since our clients are global, the team members work closely with colleagues from the US, Japan, India and China, as well as the European offices. Projects focus on M&A, which frequently involves leveraged finance and equity transactions. Most of the relevant execution work is done within the team, providing extensive opportunities to work directly with clients and to travel. The IMG team is multinational and most project teams include bankers from IMG, various product areas and other regional offices.
  
  Whether it be airlines, construction, shipping or support services, you are always guaranteed exposure to a wide range of industries when you join the Transport, Infrastructure and Services team. We focus on the corporates and organisations that provide the services and infrastructure which enable us to lead our everyday lives. You'll work closely with both team members and product partners from all levels, as part of a global coverage platform stretching from the Americas to Australasia. TIS has a strong deal pipeline and offers great opportunities to travel and meet clients.

• Technology, Media & Telecommunications
• Technology, Media & Telecom is an industry-leading franchise focused on the coverage of large and small media and telecom companies around the world. The Group performs a wide range of services including strategic advisory, capital structuring and capital markets execution (equity and debt). Our coverage universe spans from Cable, Broadcast, Newspapers, Advertising, Publishing, Gaming and Theaters on the Media side to Wireline, Wireless, Directories, Satellites and Towers on the Telecom side.
  
  The Technology Group is a dominant global franchise that executes M&A, and equity, and debt transactions for our clients. The Tech Group covers a wide array of clients, from large-cap to pre-IPO, providing our Associates with a diverse coverage and transaction experience. We cover all the major technology sub-sectors, including IT Services, Communications Equipment, Software, Enterprise Systems, Payment Processing, Semiconductors & Capital Equipment, Internet Infrastructure, Contract Manufacturing, Imaging and Printing, and Consumer Electronics.

• Real Estate
• The Real Estate Group at Citi is a global franchise that consistently ranks #1 on Wall Street. The group works closely with domestic and international clients in various real estate sectors including office, apartment, retail and lodging. In addition to providing strategic and capital raising advice to the firm's clients, the group also works closely with other groups within Markets & Banking as many clients in other industries have interests in creating value through their real estate assets.

 Product Groups

Product Groups are comprised of bankers with specific M&A or capital markets expertise spanning across all industries. Working with their partners in the coverage groups, bankers provide best-in-class advice and transaction execution for our clients in any market. 

Mergers & Acquisitions

M&A bankers advise clients on buying, selling and combining businesses, corporate restructurings and corporate takeover defenses. Our advice is based on in-depth analysis, including:

• Approach tactics: How to initiate and manage takeover discussions.

• Due diligence: Where are the opportunities and challenges for a target organization?

• Valuation analysis: How much is a target organization worth?

• Ability to pay analysis: How much competitors can pay for an organization?

• Combination analysis: The financial implications of buying an organization.

• Contract negotiations: What is the best negotiating strategy?

The execution of these transactions would have a significant impact on a company's competitive positioning and long-term strategy. As a result, clients rely on M&A advisors and industry bankers they trust to help execute their most important transactions.

We have played a key role in some of the world's highest profile, landmark acquisitions, divestitures, restructurings, takeover defenses and cross-border mergers. Our track record, depth of expertise and global capabilities enable us to offer outstanding execution, strategic dialogue, innovative deal and financing structures and a full range of advisory and capital support.

Roles of an Analyst

To give you a better understanding of what you can expect if you join the Invesment Banking division, we asked for some input from our Analysts. Here they describe the main tasks they undertake as well as their career progression and an insight into an execution project.

Roles an Analyst may undertake in Investment Banking:

Valuation Analysis - Valuation is the ultimate skill that every Analyst works to master during their career because it underpins the substance of Citi's advice to clients and captures the essence of being a banker. An Analyst is responsible for performing valuation analysis, which typically looks at several methodologies to develop a valuation range. An Analyst frequently relies on a universe of peer companies that he or she selects, and analyses them. How their peer group are valued in the public markets, and how comparable companies were sold in the past, is frequently the basis for establishing the value of your client. After all that number crunching judgment must be applied.

Modeling - Modeling and valuation are inextricably linked technical tasks performed by an Analyst. The primary purpose for building a model is to aid in valuation analysis. The benefit of a model is the ability to modify assumptions and key inputs easily so as to determine the effect on valuation. Modeling is central to sensitivity analysis, to understand how the business performs as assumptions change. The process of building a model also deepens an Analyst's understanding of a company and its industry. Often the Analyst will develop such a detailed understanding of a company that even very senior bankers will ask Analysts questions directly. Many models will be built to accommodate full functionality, including forecasting certain operating metrics in addition to the standard income statement, balance sheet and cash flow statement. It is not unusual for the company to adopt the Analysts' model for its own internal use.

Company Research and Industry Analysis - Understanding a client and its peer companies within an industry setting is absolutely essential for providing the best advice to clients. Such an understanding is also crucial to performing a proper valuation or building a model. One of the most helpful tasks an Analyst can perform for a client or internal working team is to review and select the best and most relevant research and news, which often requires a lot of personal study and dedication of time. Information can be sourced from the internet, news services, broker research and Citivision-Citi's in-house information and market data provisioning portal. Citi has dedicated researchers that work under the guidance and direction of the Analyst that greatly help in the gathering of information.

Presentation Preparation - In addition to performing research, modeling and valuation analysis, an Analyst must synthesize this information in an easy-to-understand manner for the client. While an Associate may design the pages and flow of a presentation, the Analyst is responsible for the magic that transforms the doodles and scribbles on pages drafted by the Associate into a professional document presentable to a CEO or head of state. To help the Analyst accomplish this mammoth task, there are design teams that work under the guidance and direction of the Analyst.

Co-ordination - Each project has multiple work streams, deadlines and deliverables that must be managed. An Analyst helps coordinate such tasks with internal working teams, external working teams (such as lawyers and accountants) and the client. Additionally, Analysts work with Associates to prepare required internal documentation, such as preparing internal memorandums. One example is a "New Business Memorandums" that internally notifies the senior management that a client requires our services and requests approval to work for the client at a given fee. Whilst this is not the most intellectually rigorous of Analyst tasks, it is an important part of Citi's internal controls and compliance with market regulator requirements.

What you can expect to learn as an Analyst?

At the end of your first year as an Analyst you can expect...

• To research and gather information quickly and efficiently
• To use shortcuts in Excel (it's inevitable)
• Prepare insightful materials on companies and their businesses
• To speak knowledgeably about things that a year ago you knew nothing about
• To have more stamina than you thought possible
• To know what it feels like to travel on business

At the end of your second year as an Analyst you can expect...

• To be able to build models that should be executed on super computers
• To speak a technical language that your friends do not understand
• To have developed insight for new business models and industry dynamics

At the end of your third year as an Analyst you can expect...

• To call clients on live deals
• To have people solicit your view
• To speak to issues during client meetings
• To assume increasingly the Associate role for project origination

An execution project – the Analysts' perspective
There is no such thing as a “Typical Execution Project”

Day 1 – Until the Day Before Announcement

• The Client Rules! While you try to guide them in the best way possible, you can find yourself doing stuff you don't think is necessary
• The Vice Presidents scope what is needed in order to provide the client with the best possible service
• You search for information that may or may not exist, until there is virtually no chance that it has been overlooked
• You “run the numbers” in every possible way, so when people question the result you can cite data from memory!
• You attend meetings, meet lawyers, meet accountants, spend long hours at the printers and see other people whose roles you haven't quite figured out
• You think you dislike your Associate for his/her attention to detail while you actually secretly admire his/her professionalism
• You revise endless drafts of everything until everybody is satisfied that all the bases are covered

On Announcement Day

• You are so proud of yourself
• You have done another deal
• You have your MD to sign-off on your next holiday

Day after Announcement

• You call everybody you know and ask them to buy the FT because there is an article about your deal
• You have lunch away from your desk for the first time since Day 1

Our Programs

Investment Banking in Asia has two programs you can apply for:

• Full Time Analyst Program
• Summer Analyst Program

We are currently recruiting into:

• Beijing
• Hong Kong
• Mumbai
• Seoul
• Singapore

If you choose to pursue a position with us, this is a short list of some of the industry and products groups within Asia Investment Banking in which you may work:

• Telecommunications, Media & Technology
• Financial Institutions Group
• Financial Entrepreneurs Group
• Industrials
• Energy, Power & Chemicals
• Mergers & Acquisitions
• Real Estate
• Country coverage teams

Full Time Analyst Program

The Full Time Analyst Program commences mid July with a four week training program in New York. Once you have successfully completed this, you will be assigned to either an industry or country coverage team.

Your formal training begins with orientation and induction sessions providing an overview of Citi and specifically Citi Markets & Banking. You will also have plenty of opportunities to meet representatives from the teams that make up the Investment Banking Division. The aim of the orientation and induction is to provide you with a solid understanding of the Division.

You will then complete a four week program of extensive classroom training, with skilled external corporate training consultants, supported by selected internal instructors from within Citi. This comprehensive program is designed to cover the following fundamental aspects of the Analyst role:

• Enhance confidence when extracting and assimilating financial information
• Build robust financial models
• Fundamentals of equity valuation
• Become familiar with the standard Citi financial models
• Understand key roles in the financial markets
• Obtain an overview of the most important financial products

Summer Analyst Program

The Summer Analyst Program commences in mid-June with a structured orientation program that provides an overview of Citi and specifically Citi's Investment Banking Division.

You will then complete a series of classroom training, which will be carried out by skilled instructors drawn from within the business. This comprehensive program is designed to cover the following fundamental aspects of the Summer Analyst role:

• Basic accounting and finance skills
• Fundamentals of valuation
• Citi's library and information services
• External information systems e.g. Bloomberg, Reuters
• Important financial products commonly used

Our training program is interactive and participative, ensuring that Summer Analysts play a full part in the learning experience thus making the training relevant, stimulating and effective. To support and compliment this training, we will focus on honing your computer and information/data gathering skills.

Throughout the program, we will continue to provide you with training and networking opportunities to make sure you gain an in depth knowledge of the whole of Citi. A mentor and a buddy will be also allocated to you to give you advice and support network. You will also have an opportunity to participate in various intern-wide events, including business presentations and social events.

During your time here we will be evaluating you for a full-time position on the Analyst Program the following year. We do this through a mid term evaluation and a final term review. Remember that this is a two way process – it is an opportunity for you to evaluate whether this is where you want to take your career as well.

Who we are looking for

We asked our Investment Banking recruiters to describe what makes a good candidate and what specific skills they are looking for:

Going forward we see our business continuing to flourish, and the challenges and opportunities facing our clients around the world mean challenges and opportunities for our people. We are looking for people who can face these challenges and help us to continue to succeed and meet our business goals.

We are unwavering in our commitment to investing in our junior people. We ensure that they have superior financial knowledge and are equiped with the necessary skills to successfully develop and maintain profitable client relationships.

We encourage applications from all backgrounds. We look for highly motivated individuals with strong academic performance and excellent communication skills. Having a genuine passion for the industry is crucial to becoming a successful Investment Banker.

Some of the key skills we look for are:

• An ability to work independently and in a team
• High levels of self-motivation and initiative
• A detail orientated approach
• Superior relationship building & communication skills
• Solid quantitative ability
• A strong desire to develop a sound understanding of the industry/environment
• Creative & innovative problem solving
• Ability to work under pressure on multiple projects
• A commitment to integrity and ethical decision making
• With an ever-increasing international environment language skills are also an advantage.

Recruitment Process

We open for applications on September 3, 2007

The application deadlines are:

Full Time Analyst Program:           October 12, 2007 (US Schools); October 26, 2007 (All other schools)

Summer Analyst Program:           December 10, 2007

Please apply early. Our interview process for the full time programs will commence in October 2007, for summer internships it will commence in December 2007.

Below is an outline of the recruitment process (full-time program and summer internship program) from application received to offer:

Stage 1:    Application is reviewed by Graduate Recruitment and the Business

Stage 2:    First round interviews: Two 1:1 competency based phone interviews with Asia Analysts and Associates

Stage 3:    Second round interviews: Two 1:1 competency based phone interviews with Asia Senior Associates and VPs

Stage 4:    Final round interviews: Three 1:1 competency based interviews with Managing Directors and Directors

Stage 5:    Offer extended by Business; follow up by Graduate Recruitment