... Island Capital’s focus is to provide its clients with a total solution to their corporate finance needs. It might come up if you’re interviewing with an infrastructure PE fund or a Project Finance group and they give you a case study, but you have about a 0.01% chance of getting questions on this in public finance interviews. As you’ll see in Part 2, we don’t even do much “infrastructure modeling” in public finance. Q: OK, thanks for that overview. Bond math: no, not in-depth. Basically, do employees change roles depending on the deal or are the staffs of advisory and underwriting completely separate? Other than that, the same strategies apply: ask for informational interviews, be super persistent, and always try to get an internship first even if you’re at the MBA-level or you have more experience. Also, as we’ll see in Part 2 of this interview, these entities use different accounting methods and might have different sets of financial statements for each fund (“fund accounting”) rather than the single set that a for-profit company would have. One unique topic you could receive questions on in interviews: public vs. private sector questions. * Source Global Market Outlook 2021 In boutiques & smaller firms staffs may be involved in both advisory and underwriting; in larger banks & BB the two are most likely separate. The most common questions in interviews: tell me about yourself, describe the public finance industry, why do you want to be here, and why should we hire you. Finally, your “story” is important just like it is in any finance interview – you better have a good reason for saying that you want to be in public finance rather than corporate finance. The total cash compensation, which includes base, and annual incentives, can vary anywhere from $71,982 to $107,790 with … I’d then call if I don’t hear back from them. The actual underwriting process is more like an IPO or debt issuance: we work closely with the sales & trading team and they make the marketing calls, handle the roadshow, and so on. But that changes today with Part 1 (Recruiting) of an interview from a reader who’s worked at a boutique public finance firm for several years. Thanks! I came from a complete non-target school, and broke in by aggressively cold-calling boutique banks and other local firms – eventually I converted a trial internship into a full-time position. Thanks so much! When government, education, healthcare and senior living clients need to finance important projects, they turn to a national leader. Thanks! They may ask you basic points like what impact interest rates have on bond prices (inverse correlation), but you are not likely to get advanced questions there. Loop Capital 4.5. It really depends on the deals you’ve been exposed to and your pitch. “Finance” was investment banking, private equity, and hedge funds… and maybe a few other areas like equity research and trading, right? I would look for something in corporate banking or some other lending/credit role (even credit rating agency jobs) and try to leverage that to move into Public Finance. Please refer to our full. There are a lot of “advisory” firms that do fee-based consulting work for government and tax-exempt clients rather than underwriting; it’s similar work, but you don’t get paid as much and it’s technically not even investment banking. This can potentially be a way to get into public finance. But they had a lot more work on the muni side over the next few years, so I ended up spending most of my time there. Browse 31,639 PUBLIC FINANCE INVESTMENT BANKING ANALYST Jobs ($57K-$138K) hiring now from companies with openings. A: You’ll have to wait for Part 2 for that one. Click below to see opportunities. Public finance is the study of the role of the government in the economy. I am currently a part time MBA student that will graduate at the end of this year. Q: I’m skeptical of what you just said, because I’ve heard reports of people getting more “unique” / technical questions in public finance interviews. Members of the Public Finance team in the Corporate & Investment Bank get direct exposure to a fascinating and immensely important area of finance. Thanks for the post! A: Most of the time it’s in the capital markets group of an investment bank. One more question- is public private partnership interview structure the same way as project finance interview? The Investment Banking Division public finance group provides tax-exempt and taxable financing solutions for public and private not-for-profit clients. Head of Public Finance Services Many firms do both, so his point was just to watch out what you’re applying for because you may not know what you’re getting into. Do you think a resume for Public Finance at a bink bank is significantly different from a resume for classic ib? I’ve been reading your site since sophomore year of high school and now that I’m a sophomore in college, I really appreciate this post, since my academic studies are in city planning and business. A: We specialize in advising and underwriting for tax-exempt entities – state and local governments, publicly-owned infrastructure and utilities companies, non-profits and educational institutions, and even non-profit hospitals (though the hospitals are more on the healthcare investment banking side). Morgan's Public Finance Group is responsible for providing investment banking solutions for the complex financing needs of the firm's public sector clients throughout the Country. It’s most similar to a debt capital markets group because we’re still underwriting bonds… only for different types of clients. Seasoned bankers, quantitative expertise and strong distribution fuel Loop Capital's flagship business. Filter by. We’re going to delve more into what you do on the job in Part 2, but for now I wanted to switch gears and go into the recruiting process for public finance. Q: Yup, that makes a lot of sense. They might ask you something like, “Do you think a major city should provide its own sanitation services, or should they be privatized? Thanks! You must confirm the statement above and enter a valid email address to receive this free content. I had asked the interviewer at the end when I should expect a decision, he said his team would meet on Tuesday to discuss all potential candidates(4/3). We are committed to participating in the communities we serve. Granted that one can convince them that there would be potential to get a few deals out of said municipality? It sounds quite confusing. I went in for interviews there, spoke with a couple senior bankers, and eventually won an offer, which I accepted. A: I’d say I spend around 50% of my time on these proposals. Morgan Stanley helps people, institutions and governments raise, manage and … I was staring at a reader email from back when I started M&I, and I had no clue what he was asking about. I’ve been looking for a way to incorporate both of those tracks into a career and this is really relevant to me. Discover How To Break Into Investment Banking, Hedge Funds or Private Equity. So, let’s move into an average day in your life…. +1 612 303-6657Email | Biography. We do still go out and pitch deals, acquisition ideas, or financing strategies to potential clients, but sometimes it’s more about “idea generation” than formal pitches. Piper Sandler & Co. is a leading public finance firm with investment bankers in local markets across the United States. Issuers pretty much always have competitive processes where they ask for RFPs (Requests for Proposals) from us and they decide based on who has the best RFP and who can offer the best rates. Piper Sandler is a leading, international investment bank and institutional securities firm. We guarantee 100% privacy. The group plans financial strategies and structures tax-exempt and taxable offerings along with derivative solutions to meet the needs of wide variety of important public organizations. That also gives you a good chance to get to know the industry since it really is totally different from corporate finance – you don’t want to go in expecting one thing and getting something completely different. Generally, boutique public finance firms want people with some industry experience. Experience. Another big part of the job is add-on work for the initial proposal and creating follow-up presentations. Senior bankers still spend time on relationship development with companies, but it’s definitely more about the RFP and the “bake-off” process here. Public finance investment banking services for municipalities and nonprofit entities. Prior to joining the firm, Sharp was a managing director and leader of the special district group at … A: It’s trickier than it sounds because the information is presented in confusing ways in their filings. Unlike pitch books in investment banking, you don’t just get a big RFP occasionally and then move on; they keep flowing in month after month. Filter by location to see Public Finance Investment Banking Analyst salaries in your area. Because our public finance teams are experts in their sectors, we are able to effectively serve your organization and provide in-depth analysis of your market. *, * Source: Thomson Financial, by number of issues. Just a brief email works. Can’t you just look up the information by going through their filings? Can you describe the trade-offs?”. We offer multiple financing structures that allow issuers to efficiently access the marketplace in a responsible, creditworthy and cost-effective manner. Private Equity. Yes, but I think the issue there is that they also do a lot of work that’s more similar to management consulting or operational consulting-type projects, which wouldn’t pay as well. Localized market knowledge. A: Sure. Will you cover topics like compensation, lifestyle, prestige and exit opportunities (especially as compared to those aspects for a more traditional investment banking group)? Wait for 3-4 days for their response. I would defer to readers to answer your last question. Professionals. Apply on company website. Most people want either generalist IB positions or more specialized positions, but not both. We routinely serve as underwriters counsel in connection with bond issues across the Southeast. This is great stuff, thanks guys! Island Capital Advisors, Inc. is a investment banking firm based in Palm Beach, Florida and Nassau, Bahamas. In some countries/regions, it might be combined with DCM. Awesome article Brian. 30+ days ago. Public Finance Investment Banking Analyst Location IL - Chicago Business Area Public Finance Investment Banking Employment Type Full Time Apply Now. And good luck finding insiders who can tell you what it’s like working there. My experience has been in Retail and Private Banking and I want to cross over to the Public Finance division at my current bank or another. And I wasn’t too worried about becoming overly specialized since they had planned to put me in more of a generalist role at first. Goldman Sachs) just put it under their investment banking division and call it “Public Sector and Infrastructure” (PSI). By Paul … “Public Finance” is a confusing term because it encompasses several different areas, and some banks / groups focus on one area while others do everything: Project Finance is usually a separate group or a separate team, and so is Utilities & Infrastructure. You can use the same resume template(s) that we have elsewhere on the site, even for public finance. How much does a Public Finance Investment Banking Analyst make in Philadelphia, PA? Our investment banking locations enhance our ability to serve clients within the Southwest and throughout the nation. 2021 Summer Intern - Investment Banking - Public Finance. For the sanitation services example, you might argue that since many local governments are facing budget shortfalls and declining revenue, it makes sense to contract out the services; privatization might also improve their efficiency and result in better quality of service due to the competition between providers. At boutiques it’s simpler because public finance-focused firms tend to do public finance and not much else. Q: Let me stop you right there for a minute – public finance is a pretty specialized area. “Public Sector and Infrastructure” (PSI). I am not 100% sure but I wouldn’t say so; it really depends on the bank and the interviewer. A: It can be really tough to find these specialized public finance firms, because it’s easy to confuse them with consulting firms in this space. But you should review the basics and make sure you know going market rates for municipal bonds just to be safe. But moving on, let’s circle back to how it’s different from normal investment banking. Interesting to hear about that, the interviewee didn’t mention a math test but then he already had ~1 year of experience so it was a bit different. As it turns out, quite a few readers – because the emails and questions kept coming. I worked at that bank for a while, but they wanted me to transfer to another office due to some changes at the top and I didn’t want to move far away. Please refer to our full privacy policy. Free Exclusive Report: 57-page guide with the action plan you need to break into investment banking - how to tell your story, network, craft a winning resume, and dominate your interviews. What should you expect in interviews with these groups? Public Finance Issuing municipal bonds in today’s complex market requires highly specialized investment banking services. We also had an MBA intern once, but I believe he found us through networking; I’m not sure how much public finance boutiques focus on business school recruiting. Oppenheimer’s Public Finance Investment Banking professionals advise and raise capital for state and local governments, public agencies, private developers, non-profit organizations, and other borrowers. A few friends who interviewed with public finance groups at bulge bracket banks (BoAML has a strong group) didn’t report getting a lot of technical questions on bond math, either. By consulting firms, are you referring to “Financial Advisors” like PFM or PRAG? I’d like to know how they convince countries to sign up for something that neither the IB firm nor the government understands! If I get an internship there, would it be relatively easy to transfer into a more classic investment banking group since its already an industry group or would it still be hard to break into classic ibd? Be sure to cover hat demonic deal that IB make with countries called debt swap. Piper Sandler Chicago, IL. Most of my experience has been with the first group above, municipal securities underwriting. And since our issuers are tax-exempt, make sure you know what “tax-equivalent yield” means and how to compare muni bonds with corporate bonds. In addition, we provide M&A advisory services, valuation services, and capital sourcing, amongst others. Most analysts here come in with at least 1 year of experience, unless they interned here previously and converted that into a full-time offer. A: Sure. Whether you work with issuers or investors, you will have the opportunity to learn and make meaningful contributions. Q: I see… I’m not sure if I’m more or less confused now. Public Finance has been one of our most-requested topics, and for good reason: it’s close to impossible to find reliable information on it online. Are they biased toward undergraduates, MBA graduates, or those with more experience? Can you give me a few examples of these public finance firms so that I can look them up and see what I should be looking for in order to tell them apart from consulting groups. What's more, we take the time to guide you through the process of putting it together. We support our public finance platform with a strong primary and secondary trading effort. Coming up soon! The national average salary for a Public Finance Investment Banking Analyst is $86,643 in United States. New York, NY 10005 (Financial District area) Loop Capital's Public Finance Division provides specialized banking practices in healthcare, housing, project finance and transportation as well as market,…. To learn more about, Investment Banking Groups & Regions - Industry Groups, please click here to get my FREE 57-page investment banking recruiting guide - plus, get weekly updates so that you can break into investment banking, advising utilities and infrastructure companies on M&A. In 2018, Piper Sandler was ranked the No. Thanks again for this site and for the opportunity to learn more about my future career. We are one of the largest US Municipal Finance practices in the country, headquartered in New York with over 340 banking and sales professionals operating in 26 offices across 16 states. Find your next job near you & 1-Click Apply! Brian, I want to first say thank you for this site! Q: OK, so it sounds like you spend a lot of time writing these proposals for governments and tax-exempt entities that want to issue bonds. Morgan Stanley’s Public Finance Investment Banking group raises capital to fund projects for public sector entities and not-for-profit institutions. There can sometimes be confusion between an investment bank and the investment banking division (IBD) of a bank. As for why I took this offer without interviewing around more extensively: I was speaking with a few other firms, but I thought it was a good offer and didn’t want to risk losing it by waiting too long. We also spend a lot of time analyzing how much debt a city or state has issued over the past several years and figuring out what they can issue going forward. It is the branch of economics that assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. A: We specialize in advising and underwriting for tax-exempt entities – state and local governments, publicly-owned infrastructure and utilities companies, non-profits and educational institutions, and even non-profit hospitals (though the hospitals are more on the healthcare investment banking side). When is it appropriate to send another e-mail or even call the firm? As a former senior-level public finance investment banker for 25 years, I would be more than happy to answer questions from my point of view. Public finance is an exciting area of investment banking, where bankers work with a diverse group of public sector, nonprofit and developer clients. Even if you’re out of school already, you can just propose a “trial internship” and reduce the risk for both parties. Your information will not be shared. Investment Banking. Salary estimates are based on 4,225 salaries submitted anonymously to Glassdoor by Public Finance Investment Banking employees. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Apply to Investment Banking Analyst, Financial Analyst, Investment Analyst and more! You don’t need to memorize every detail, but you should have at least a sense of what’s going on in the market. Great article, I noticed that Goldman Sachs is the only firm that puts their PSI group under their investment banking industry groups. Your email address will not be published. Instead, we work with you to find financing that fits your needs. Who would want to advise the government on how to finance its infrastructure projects? Don’t you need to know anything about infrastructure financial modeling or bond math? The investment banking division It seems like the same skills would be needed, especially in a negotiated deal. So you mentioned above some different points that you might want to know about for public finance interviews – where can you find more information on going market rates and recent issuances? Stephens Inc. So does it mean that project finance interviews won’t be that technical compare with an M&A interview in a BB bank? Thanks! Hi M&I, A little off topic, but your website is awesome. Public Finance Localized experience coupled with broad securities distribution. I would actually look on LinkedIn for some good examples: http://www.linkedin.com/skills/skill/Public_Finance, http://www.linkedin.com/groups?gid=1616807&trk=skills. The base salary for Public Finance Investment Banking Analyst ranges from $68,619 to $97,282 with the average base salary of $80,911. Do investment banking recruiters or the M&I team think project finance career is worth it/good?If i have experience in project finance , like raising money for projects,studying capital structure,valuation, is it close to IB/Corporate finance? So you went into public finance without knowing much about what you really do there – what do you actually do, and how is it different from normal investment banking? Unlike with corporate debt and M&A activity, all the information here is public so you have no reason not to know it in advance. Q: Great, thanks for those tips. Adds Public Finance Investment Bankers to Expand Education-Related Financing in Texas Stephens Inc., an independent financial services firm, announced expansion of its K-12 public finance capabilities in Texas with the hiring of education experts Brian Garcia as senior vice president and Dr. Alfred Ray as vice president. Finally, you should be aware of any recent legislation or policies that have caused demand or pricing for muni bonds to rise or fall. Great article, at least at the boutique I’m at, neither I nor any of the other analysts at our other regional offices had any pubfin background. I don’t like to cover time-sensitive issues but he does address the future of the industry a bit. If an individual can get a personal recommendation from the finance director of a major municipality, would that be a suitable way to get into pub fin? It is a wonderful subset of investment banking, and well suited for people with a desire for a career in investment banking, but one which touches on public service at … It’s tough without an internship, but you can sometimes move from other credit-related roles into Public Finance (and it’s often easier to win credit roles than equity roles on both the sell-side and buy-side). I think it is.Will future IB recruiters look down upon such experience , no offence but sometimes Brians comments give me this feeling, I don’t think recruiters will look “down” on such experience. The national average salary for a Public Finance Investment Banking is $86,643 in United States. Besides the usual analytical, teamwork, and burn-the-midnight-oil qualities, you also need to write well if you work in public finance because we spend so much time drafting proposals and writing long RFPs. Public Finance Investment Banking & Commercial Banking. Investment Banking / Public Finance Our investment banking team has the capabilities to underwrite primary bond offerings for municipal credits, and structured distressed transactions for both public and private sector clients. I think it should not be a difficult move; def a relatively easier move vs a move from BO/MO-> FO or S&T/PB -> IBD. Or are you referring to consulting firms that do non-transaction related advisory? Required fields are marked *. We never tackle your transactions with a one-size-fits-all approach. Investment Banking - Public Finance. Infrastructure modeling: highly unlikely. Any more thoughts on how to line up an internship or full-time offer in public finance? Unfortunately, I do not have IB experience and not in a position to take on an internship. And yes. Do you have any advice or recommend any of your courses to properly prepare to achieve my goal. location to see Public Finance Investment Banking salaries in your area. The difference is that you’ll write about different deals and describe your experience a bit differently (more focus on the financing side). Thanks! Overview. Depends on how big the firm is. A: Sure. There’s no right or wrong answer; it’s really about your thought process and how well you explain your reasoning. I believe it does, but not sure of the details. Representing local and regional banks, as well as major Wall Street investment banks, our services span due diligence, document preparation, negotiation and regulatory compliance. You can still get in with less experience than that, but most of the time you’d have to complete an internship here to have a good shot at winning a full-time offer. Salary estimates are based on 4,225 salaries submitted anonymously to Glassdoor by Public Finance Investment Banking Analyst employees. You might point to previous experience in student governments, non-profits, or anything policy-related (even something like the debate team) to support this claim. Q: So before we move on: how do banks actually classify public finance in their organizations? What made you accept this offer so quickly and not consider other options? PNC combines the size, scale and capabilities of a large national commercial and investment bank with the values and community focus of a Main Street bank. “Public finance? Do the same employees, on different deals of course, serve on the financial advisory side and the underwriting side in smaller banks? Public Finance Investment Banking Analyst. Q: And what might a good reason sound like? Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. The purview of public finance is considered to be threefold, consisting of governmental effects on: His firm wasn’t hiring, but he gave me a bunch of referrals and put me in touch with a boutique bank that specialized in public finance. Our public finance professionals specialize in state and local government, derivatives, education, healthcare, hospitality and senior living. Does this role exist in other countries besides the U.S., and if so, where? Investment Banking Public Finance ... Our public finance professionals specialize in state and local government, derivatives, education, healthcare, hospitality and senior living. We respect your privacy. Best Regards. There’s little negotiation work required because we don’t advise on M&A activity – only underwriting. Piper Sandler is a leading, international investment bank and institutional securities firm. Our Public Finance Investment Banking Group has assisted hundreds of clients in underwriting general obligation, lease rental, special assessment area & TIF, water/sewer, higher education, healthcare and other revenue bonds. Regional Leaders. Here’s a good example of an official statement for a bond offering from New York City – skim through that and you can get a sense of what’s important when you’re financing state and local governments. Banking services for corporations, institutions and governments % sure but i wouldn ’ t like to cover demonic... For this site and the interviewer to incorporate both of those tracks into a career and this is relevant! T like to know how they convince countries to sign up for something that neither the IB firm the! One of the time it ’ s move into an average day your... S most active underwriters government in the economy instead, we provide a local presence in 34 across. 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