We’ve suggested before that being an MD in M&A isn’t everything it’s supposed to be. – That it’s not all business class flights and exotic lounges. That, actually, working as an MD in M&A might be the sort of relentless, highly pressured role that analysts in IBD who are working 80 hour weeks expect to leave behind when they hit 29.
Now Bloomberg confirms it. The newswire has been speaking to senior investment bankers who’d hoped for a part in the $90bn SAB Miller InBev deal but have been left in the cold. The emotion is extreme. ‘A senior dealmaker reached on Wednesday, whose firm is not yet on the deal ticket, was near tears as he discussed the prospect of missing out,’ reports Bloomberg. Peter Hahn, a former Citi banker turned academic, tells Bloomberg that it’s tough when you’re a senior banker who’s been telling your bosses how close you are to your clients, only to find that you’re clients ignore you at the crucial moment: “…you’re not on the deal, it doesn’t look too good.” Careers can be broken by such exclusions; bonuses can be withheld. It’s not even the fees – it’s the league table positioning that matters. “A lot of them would almost do it [the deal] for free,” says Hahn.
Separately, Parisian bankers at SocGen might have thought they were inviolable given that they’re a) in France where laying people off is hard and b) their CEO keeps saying positive things about the investment bank. They’re not. The French bank is making 230 jobs in its global banking and investor solutions unit redundant. Contractors appear to be bearing the brunt of the cuts however: SocGen will eliminate the jobs simply by refusing to renew expiring contracts.
Why Goldman Sachs stock could rise by 30%. (WSJ)
Now’s the time to work in restructuring. (Bloomberg)
Active Beta: the new place to work in ETFs, just ask Goldman Sachs. (Reuters)
Three new hedge funds you could maybe work for now. (Pionline)
Wild new concept: RSRCHXChange will allow asset managers to buy research notes directly from an online site. (Financial News)
It’s not going well for Bob Diamond. (Bloomberg)
How it is when you forego a career in finance: “I grew up upper middle class and my anxiety stems from the fact that I don’t necessarily have enough money to maintain the lifestyle I enjoyed growing up.” (Fusion)
The Pope’s advice to existentially sad 22 year-olds. (The Atlantic)
You will live longer if you take regular saunas. (ScienceNews)
Lies are more convincing when you need to pee. (New Scientist)