Investment Banking > Analyst
Markets & Banking > North America > Global Banking > Investment Banking > Analyst
- Business Description
- Roles of an Analyst
- Our Programs
- Summer Diaries
- Who we are looking for
- Recruitment Process
- Where
- Our People
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.
What is Investment Banking?
Investment Banking is often referred to in this industry as Corporate Finance. 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.
Investment Banking and Citi.
2006 was a great year for Citi in Investment Banking. We were involved in nine out of the top ten deals. These deals include:
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 privatizations 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 are we structured?
The Investment Banking Division is broadly organized into four main groups:
Each industry group below offers a diverse and exciting experience, and performs a wide range of services including strategic advisory, capital structuring and capital markets execution (IPOs, leveraged loans, investment Grad bonds, high-yield bonds etc… ) in partnership with M&A, Equity Capital Markets, Leveraged Finance and Fixed Income Capital Markets product groups.
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. Below 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 his or her career, as 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. Typical valuation methodologies include analyzing comparable companies (a universe of peer companies that the analyst selects to see how they are valued), precedent transactions (similar transactions in the same industry or of companies of similar sizes and capital structures that have closed in the past few years), the discounted cash flow (DCF) analysis (calculating the present value of the future cash streams of a company) and a leveraged buyout (LBO) analysis (calculating the Internal Rate of Return an acquirer can earn if they choose to buy a target company). After all the number crunching is done, judgment must be applied, but it is the analysis that serves as the backbone of any recommendation to a client. Analysts and associates work very closely together to ensure that this is done perfectly.
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 easily modify assumptions and key inputs to determine the effect on valuation. Modeling is central to sensitivity analyses, which is the understanding of 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 and the clients will ask the analyst 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 Analyst’s' model for its own internal use. along with accounting and finance concepts, Microsoft Excel is the analyst's main tool when building a model.
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. Most of the presentation materials are in Microsoft PowerPoint, a tool all analysts will quickly become very familiar with.
Coordination: Each project has multiple work streams, deadlines and deliverables that must be managed. An analyst helps coordinate such tasks with internal working teams (such as the M&A group, Financial Strategies Group, or Capital Markets teams), external working teams (such as lawyers, accountants, and other investment banks) and the client. Additionally, analysts work with associates to prepare required internal documentation, such as internal memorandums. One example is a "New Business Memorandum" 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.
At the end of your first year as an analyst you can expect to….
- Research and gather information quickly and efficiently
- Use shortcuts in Excel
- Prepare insightful materials on companies and their businesses
- Speak knowledgeably about things that a year ago you knew nothing about
- Have more stamina than you thought possible
- 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
- Speak a technical language that your friends do not understand
- 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
- Have people solicit your view
- Speak to issues during client meetings
- Assume increasingly the Associate role for project origination
An execution project from an Analysts' perspective - There is no such thing as a “Typical Execution Project.”
Day 1 – 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 and 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 until everybody is satisfied that all the bases are covered
Announcement Day you…
- are so proud of yourself
- have done another deal
- have your MD sign-off on your next holiday
Day after Announcement you…
- call everybody you know and ask them to buy the Financial Times because there is an article about your deal
- have lunch away from your desk for the first time since Day 1
Our Programs
Investment Banking in North America has two programs you can apply for:
- Full time Analyst Program
- Summer Analyst Program
Full Time Analyst Program
The full time Analyst program commences in July with a four-week intensive training program. Once you have successfully completed this, you will be assigned to either an industry or product coverage group.
Your formal training begins with orientation and induction sessions providing an overview of Citi and specifically Markets and Banking. You will have the opportunity 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 and allow you to make an informed choice as to which team you would like to join, after completion of the training program. The allocation process will be based on your preferences and our specific business requirements.
You will then complete a four week program of extensive classroom training, with skilled external corporate training consultants, along with 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
The program is organized with various social events to allow the class to network with each other as well as with senior banking professionals.
Summer Analyst Program
Summer Analysts are assigned to either an industry or product coverage group based on their individual preferences as well as the needs of the business. The summer internship program commences in June with a one-week internsive training program. This begins with orientation and induction sessions during the first day that provide an overview of Citi and specifically Citi's Investment Banking Division.
You will then complete a four-day program 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 and placement Analyst role:
- Basic accounting and finance skills
- Fundamentals of valuation
- Citi's library and information services
- External information systems e.g. Bloomberg
- Important financial products commonly used
Our calendar of events for the summer showcases the best of what our cities have to offer. Additionally, we have a weekly Distinguished Speaker Series, allowing our senior management professionals to host discussions and answer questions. The Mentor Program enables you to develop a professional rapport with senior and junior professionals who can offer their experience, knowledge, and guidance throughout the summer.
Summer Diaries
John Misulia, Georgetown
Having almost completed the final day of my summer analyst internship in Citi’s Investment Banking Division in New York, I can sincerely say that this has been a tremendous learning opportunity and a wholly enriching experience. Looking back upon an internship replete with so many fond memories and experiences, it’s difficult to encapsulate an entire summer in a few sparse pages.
The first of my 10 weeks at Citi found me in training, where I was broadly introduced to the rudiments of investment banking. As my summer analyst class was comprised of many students hailing from an array of schools and backgrounds, with majors spanning from English Literature to Biomedical Engineering, training began with the most fundamental precepts of finance, accounting, and other disciplines that would form the cornerstones of my experience at Citi. The trainers, all first or second year analysts themselves, were all very personable and proactively sought to ensure that each one of us walked away with a sufficient comprehension of the material.
One of the most enjoyable aspects of the opening week was the numerous summer analyst events which fostered a strong sense of comradery among the summer analyst class as I quickly began to bond with the people who would become my best friends over the summer. It was during these memorable outings where I also began to cultivate a close relationship with my senior mentor, who happened to be working on the Blackstone IPO at the time, which would continue to develop throughout the summer. Perhaps the highlight of the first week actually came on the very first afternoon, when my in-group mentor arrived at training to escort me to what would be my cubicle for the summer and to introduce me to everyone in my group. Upon arriving, I was taken aback at how amiable and genuinely receptive everyone in the group was, even to me, a lowly summer intern! In fact, within minutes of arriving at my cube, both my Managing Director and my Director successively stopped by to introduce themselves, share a bit about the dynamics of both the group and the industry and offer any assistance they could in getting me acclimated. One aspect of my cube that I immediately noticed was the positioning. I was situated directly across from the offices of my MD, Director, and VP, whose perpetually opened doors meant I was able to hear the minutia of virtually every client call they made throughout the entire summer. This was a tremendous boon as simply being able to hear their conversations quickly familiarized me with investment banking jargon, and I was soon able to wade my way through what initially seemed a sea of rich industry parlance.
In the subsequent weeks, much of my time was spent propelling my way up a steep learning curve. Although fully anticipated, it was initially overwhelming to realize how little I actually knew relative to the full-time analysts. However, I was touched by the consideration and kindness of my team members, who continually went out of their way educate me, not only in regards to the specifics of how to execute a particular task, but more broadly, why I was executing this particular task and how it fit into the grand scheme of the deal and investment banking as a whole. In fact, one of the most beneficial aspects of the internship came in the form of my in-group mentor. I was lucky enough to have an amazing 2nd year analyst as my in-group mentor, who took a sincere interest in every facet of my growth and development throughout the summer. She routinely took time out of her busy day to generously offer her insights on any questions I might have, demonstrate the finer points of executing certain tasks, as well as simply be a terrific friend.
Along with such rapid learning and experience came substantially increased responsibility. Certainly one of the most rewarding aspects of the summer, I was amazed at the level of exposure that was afforded to me from the very outset. On my very first deal alone, the team was already allowing me to sit in on the client calls, perform industry, market, and company specific analysis, construct the Public Information Books, spread the comparable company analyses, and work on both the valuation model and presentation book for an upcoming client meeting abroad. As a wide-eyed amateur, I was absolutely exhilarated to be staffed on deals spanning such a broad scope of learning experiences and responsibilities.
As rewarding as the previous weeks had been, the peak of my summer came in the 8th week when I elatedly embarked upon the final leg of a two-week road show for an $8.2 billion debt issuance. The road show team consisted of only me, my associate, the CFO of an $80 billion company chemical company, and the CEO and CFO a Massachusetts based chemical company that the other company recently acquired for $12 billion. Joining the team for their pitch in mid-town Manhattan, I must admit I was more than a tad nervous to be meeting some of the top executives of one of the largest chemical companies in the world. Little did I know I would soon be trading college stories over a cocktail with the CFO of an $80 billion company on a lavish private jet bound for Pittsburgh! After we touched down in Pittsburgh, we were whisked away in a luxury SUV to what would be my first meeting on the road show. The team was kind enough to let me sit in on the meeting (at the head of the table no less!) where management related the story of the two companies, the acquisition, and the specifics of the issuance to the potential high-yield investors. The most intriguing part of the meeting came at the end during the open Q& A segment of the presentation, where management deftly fielded a myriad of often difficult questions from the probing investors. Immediately following the meeting, we were chauffeured back to the airport where we took off for Chicago. Arriving in Chicago at approximately 6 p.m. we checked into the hotel and since there were not any more meetings for the rest of the day, everyone decided we should go out on the town for the evening. We ate a late dinner at a fantastic Brazilian steakhouse and then returned to the hotel bar for a few more hours, were I was able to get to know all of the executives on a much more personal level. The following morning we were off to meet with another group of investors in the Sears Tower. This was perhaps the most captivating meeting of the roadshow, as I was able to witness management skillfully navigate their way through choppy waters as the prying panel of potential investors assailed them with some of the most thorough questioning I had seen yet. Following the meeting in the Sears tower, we promptly drove back to the airport where we took off for Milwaukee, Minneapolis, Delaware and then finally back to New York. Pondering back upon those exhilarating few days, the amount I was able to absorb from my exposure to each of the executives simply isn’t quantifiable; the road show was certainly an unparalleled, once in a lifetime learning experience for which I’m truly grateful.
Looking back over these past 10 weeks, time seems to have passed in the blink of an eye. This summer has undoubtedly been one of the most memorable and enriching of my life, both from a professional and personal perspective. I’m sure it will be some time before I’m able to fully fathom the abundance of information and events, in which I have been so deeply immersed. Working with the team practically everyday for the past 10 weeks, I’ve shared so many wonderful learning experiences and fond memories with each one of them; it almost feels like I’m leaving family. To be able to both learn and do so much in such a short period of time, in the company of such fantastic people, I don’t think I could have imagined a better summer experience. Leaving Citi later today will certainly be bittersweet.
Libby Wegener, Dartmouth
Introduction
I flew to NY on Saturday June 16th, 2007. A week earlier, I finished my junior year of college (I study at Dartmouth, majoring in Economics and Art History). My internship in Citi’s Investment Banking Division would begin the following Monday. Since February, when I got my offer, the summer stood out as something to look forward to. During my junior fall, I spent my off term interning with Citi in the M&A Group. Now I would be working with the Communications Group. This group covers the telecommunications, media, and leisure industries. On the plane, I wondered how my two experiences would be different. The plane hit the runway in New York and my summer started. My job would start soon too.
Training
On Monday I headed down to 388 Greenwich St. for my first day.
Citi provides a week of training for its summer IBD interns. The program covers the basics of accounting, finance, and valuation. In four days our “trainers” gave us an overview of the core materials. For liberal arts students, the volume of information can seem intimidating at first. Be prepared to be lost, even if you study economics or have taken finance. Do not hesitate to ask questions. If you come from a non accounting / finance background the material will be new. The goal during training is not to master the material but to familiarize yourself with it. If you pay attention to your trainers, the transition from to the job will be easier.
Beginning
With training finished, the other interns and I were released into the “job.”
During the first week, I got staffed on two M&A pitches—one in media and one in telecom. The first required less quantitative work. I researched trends in television production and got exposed to basic valuation. Both the analyst and associate I worked with were happy to answer questions and made sure the experience was educational. Overall, the project gave me a solid introduction to the procedural aspects and basics of the job.
For the telecom pitch, my involvement increased. For this book I analyzed several wireless companies as potential acquisition targets. The unfamiliar vocabulary and metrics specific to the telecom industry seemed confusing at first. My associate took the time to explain the industry and how these various elements would affect the valuation. I searched filings and research for data on subscriber levels, costs, population, and overlap. The project also gave me a chance to start building models. I found the project rewarding due to the steep learning curve— by the end I felt like I built my technical skills and felt like I had a better grasp on the wireless sector.
End
Towards the end of the summer I got staffed on projects that exposed me to the capital raising side of the job. The first was an IPO for a marketing company. Since the deal was live it showed me the process of bringing a company public. The other was a wireless IPO pitch—it taught me some of the reasoning behind IPOing a company. Since I had already done some work in wireless I could contribute more to the project. Now I could build on my knowledge, better anticipate what needed to get done, and decide what metrics to focus on.
As summer winded down I became more efficient. Now I can look at a book and better understand how my work fits into place. Unlike other jobs, in banking the more I learned made the job more interesting.
Retrospect
This diary provides a small snapshot of my summer. It tells you about some of the work and gives a general sense as to what the program is like. Aside from the work, what I enjoyed the most were the people I connected with. Citi trains its summers well, but also treats them with tremendous respect. The bankers want the work to get done correctly and efficiently, but also want give the interns the opportunity to learn. I cannot think of a more rewarding summer experience and encourage all with interest to apply.
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.
We encourage applications from candidates with undergraduate degrees from a wide variety of backgrounds. We look for highly motivated individuals with superior academic performance and excellent communication skills. Having a genuine passion for the industry is crucial to becoming a successful Analyst.
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
We are looking for candidates who can prepare the analysis and materials for a meeting with the CEO of a high-profile company, while calmly exhibiting professionalism and insight throughout their interaction with the client.
Recruitment Process
Full Time Analyst
Markets & Banking begins the formal full time recruiting process in early September in the form of an on-campus presentation. All students are invited to attend this event to learn more about the culture, the business, and the people at Citi.
Following that, job descriptions are posted through university career centers. After all resumes have been collected, a closed, targeted list of first round interview candidates is compiled.
First round interviews take place on-campus in mid to late September and successful interviewees subsequently go through either a second round interview or move directly to Super Day in October. Citi on-campus interviews are typically 30 minutes; Super Days typically consist of four 30-minute interviews. Offers are given as soon after Super Day as possible.
Summer Analyst
Our summer Analyst recruiting begins in January in the form of an on-campus presentation. All students are invited to attend this event to learn more about the culture, the business, and the people at Citi.
Following that, job descriptions are posted through university career centers. After all resumes have been collected, a closed, targeted list of first round interview candidates is compiled. Two-on-one interviews take place on-campus in January and February after which offers are made as soon as possible.
Below is an outline of the recruitment process from application received to offer:
Stage 1: Application is reviewed by Graduate Recruitment and the Business
Stage 2: First round on-campus interview
2:1 competency based interviews
Stage 3: Final round interviews
Four 1:1 competency based interviews with a combination of Managing Directors, Directors, Vice Presidents and Associates
Stage 4: Offer extended by business; follow up by Graduate Recruitment
Please note: Final round interviews take place in the office where the position is located (i.e. if applicant is interviewing for a position in NY, the final round will take place in the NY office).
Where
- Chicago, IL
- Dallas, TX
- Houston, TX
- Los Angeles, CA
- New York, NY
- Palo Alto, CA
- San Francisco, CA
- Toronto, ON
Our People
Cynthia Lin
BA NYU Stern
Analyst
- What advice would you offer prospective candidates on transitioning from school to the workplace?
This line of work is what you make of it. It’s really all about having the right attitude, being eager to learn and participate as an active part of the team. And as long as you communicate and voice your thoughts, this job can hone your skills and open a lot of doors.
- How would you describe your team and the people you work with?
I can’t think of a more diverse group of people. We all come from very different backgrounds, but have this job as a large part of our lives in common. From top to bottom, I feel we have a great group dynamic, which really enhances every other aspect of the job.
- Where do you see yourself in five years?
I intend to go back to school in order to transition into financial broadcast journalism. It’s a risky switch, but I hope to spend a few years in print and ultimately reporting and production for financial broadcasting.
- How did your summer internship help you make the decision to pursue a career at Citi?
I was a summer in the same group I’m currently working in now. It was an easy choice to come back simply because the people are great. Finding a group you mesh well with is half the battle, and to me, the key in having a fulfilling two years. This group definitely offers such an experience.
- What do you enjoy doing outside work?
I love taking advantage of the various activities this city has to offer. Especially during the summer, it’s relaxing to go to the wide-ranging shows, concerts, restaurants, sales, exhibitions around Manhattan.
Therisa Perrin
Dartmouth College; Degree: B.A. Latin American Literature
Analyst
- What do you consider Citi's competitive edge?
In line with my comment above, I truly believe the people at Citi and furthermore the culture they foster is the firms competitive edge. I work with individuals who on all levels serve as my mentors and teachers. From the moment I entered the bank, it was clear that my development as an analyst, and furthermore a professional, was held at the forefront of importance for senior management. For me, this has been an integral part of my experience and what I believe separates Citi from its peers.
- How would you describe your team and the people you work with?
I would say that the people at Citi, whether at the junior or senior level, are by far the firms key asset. Within my year in the investment bank, I have had the opportunity to work with an array of impressive individuals, who are as equally personable and professional as they are sincere and dedicated. Particularly within my group, I would say that the relationships I have developed with the people I work within go beyond the office. That is, I consider these individuals as much friends as I do colleagues.
- What other groups do you liaise with regularly within the Firm?
As I work in a regional coverage group, I have had the opportunity to work with individuals throughout the bank across all products and industries. Most of the work we do in Latin America general considers a cross-boarder component, which has provided me the opportunity to execute transactions with teams involving our London, Hong Kong and Colombia offices, for example. Additionally, a great percentage of our work involves our local Citibank in-country colleagues.
- How do you apply your degree to what you're doing now?
I have found that many of the skills you need to execute your day to day tasks are things that you are taught on the job and expected to develop throughout your time in the firm. Furthermore, I would say that it is things like work ethic, time management / organizational and critical thinking skills that are developed in undergrad which prove to be the most drawn upon in any professional environment. Aside from the language component, I believe my degree in Latin American Literature helped me to develop communications skills with individuals across cultures, which is something that I utilize daily.
- What do you enjoy doing outside work?
Outside of work I try to spend as much time as possible with my family and friends which usually translates into long dinners on Saturday and Sunday nights. I spend a lot of time traveling for work, so I would generally opt for staying close to home.
Joseph Workman
B.A. in Government and History, Dartmouth College
Analyst
- What do you consider Citi's competitive edge?
As the largest financial services firm in the world, Citi offers its clients a platform that is second to none. Because of the firm's breadth of capabilities, Citi is able to offer its clients advice that is product and structure agnostic. I have regularly worked on projects where a client was able to consider a range of products, and eventually decide on the solution that best fit their needs.
- How would you describe your team and the people you work with?
The people at Citi are second to none. Everyone that I have had the pleasure of working with has been extremely intelligent, highly motivated and very professional. Both senior and junior professionals genuinely care about the work experience of analysts, and are willing to go the "extra mile" to help analysts learn and thrive in their careers at Citi.
- What other groups do you liaise with regularly within the Firm?
As a member of the private equity placements product group within the investment bank, I regularly work with all of the investment banking industry groups, the M&A group, equity capital markets, debt capital markets, project finance, asset-backed finance just to name a few.
- How do you apply your degree to what you're doing now?
As I began my career at Citi, I did not think that my liberal arts background would be applicable to investment banking. I have found, however, that my education has prepared me by teaching me to think "critically" and "outside of the box" when analyzing challenging situations. Any fears that I may have had surrounding my lack of formal education in accounting and finance were erased during the analyst training program, which fully prepared me for my day-to-day work as an investment banking analyst.
- What do you enjoy doing outside work?
I enjoy a wide range of outdoor activities, including running, hiking, biking, camping, fishing and hunting, to name a few. Recently, I have also begun to learn about wine.
