Market Overview of Investment Banking in Dallas
In recent times, Dallas has been one of the most attractive places for finance job seekers. Even if we know that New York is the financial hub of the US, the data shows that in terms of the availability of financial jobs, Dallas is now number one in the US. Dallas stands at a number one position with 9.3% of jobs in financial activities. Even it’s more than New York by 0.5%. So what does it tell about the investment banking market of Dallas?
It turns out that a lot depends on the financial marketFinancial MarketThe term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. It provides a platform for sellers and buyers to interact and trade at a price determined by market forces.. Since Dallas has been able to provide low living costs, employees from all corners of the country seek financial jobs in Dallas so that they can save most of the money they earn and live a decent life. Two things help the investment banking market in Dallas stand out. One is the laser-like focus on middle-market investments. Most of the investment banking in Dallas focused on the middle market. The second thing is a complete, customized customer-centric approach.
Now, let’s talk about the services offered by investment banking
Services Offered by Investment Banking in Dallas
Let’s have a look at these –
- Capital Sourcing: Investment banksInvestment BanksInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc. help the companies in the middle market get the required capital to get started with their operations. This capital can be working capital that the company would use for day to day operations. Or it may be growth capitalGrowth CapitalGrowth Capital, also called Expansion capital, is the amount of money offered to the fast-growing businesses requiring finances to expand their operations or new market ventures. All in all, it helps facilitate target firms for accelerating their growth rate. by using which the company expands its reach.
- M&A Advisory: When the companies would like to merge or acquire a company to expand their business, investment banks help them in executing the same. Plus, these investment banks use economic reality analysis (ERA) to help find out how a company can be served.
- Debt RestructuringDebt RestructuringDebt restructuring is a refinancing process whereby the company facing cash flow issues arranges with lenders to renegotiate favourable or flexible terms, saving themselves from bankruptcy. The lenders may choose to lower the business rate or increase the time limit for paying the interest and principal amount.: Many middle-market companies don’t use their debt well. Even if there’s room to use debt well and gain leverage, many companies don’t do that. Investment banks in Dallas help these companies restructure their balance sheet so that they can take advantage of the right leverage.
- Management BuyoutsManagement BuyoutsA management buyout (MBO) is a type of acquisition where the management of the company acquires the ownership of the business by increasing their equity stake or by purchasing assets and liabilities with the objective of leveraging their expertise to grow the company and drive it forward using own resources.: Investment banks help their clients find alternative routes of traditional selling of businesses. These strategies help the clients get great deals and every transaction becomes a win-win for them.
List of Top Investment Banks in Dallas
Let’s look at the top 5 investment banking –
- Capital Alliance Corporation – The focus of this investment bank is on the middle market companies. This bank was established in the year 1976, around 42 years ago.
- Allegiance Capital Corporation – This is another top-notch investment bank headquartered in Dallas. This is one of the premier investment banks in Dallas. It has a worldwide network of 44 firms in around 25 countries.
- RGL Advisors – RGL Advisors are one of the topmost investment banks in Dallas. The four things that help this investment bank stand out are industry expertise, independent approach, customized services, and international connections.
- Kratos Capital – This bank has been serving its customers for the last 10 years. They take due diligence to its next level so that they can serve its clients accurately.
- Infinity Financial Group – This is another topmost investment bank headquartered in Dallas. The focus of this investment bank is on the lower and middle markets. It specializes in M&A advisory and corporate finance.
The recruitment process of investment banking in Dallas has been mixed. It means the right candidates are being selected by using many methods – employee referrals, recruitment through recruitment agencies, etc.
As per Glassdoor, here’s a snapshot of how the interviewees at JPMorgan looks at the recruitment process –
From the above figure, it’s clear that the maximum application comes through the online application process. Another two significant processes used to recruit are employee referrals and campus recruitment. The good news is even JPMorgan’s investment banking interview questionsInvestment Banking Interview QuestionsThe purpose of this Investment Banking Interview Questions and Answers is simply to help you learn about the investment banking interview topics. are quite easy as found by the candidates. They rated the difficulty only at the level of 2.7 out of 5.
Taking these data points, you can prepare for the interviews and crack the investment banking market. Still, you need to remember that networking and internships are the two most important factors in getting placed in a top-notch investment bank in Dallas.
In terms of lifestyle, Dallas is one of the best places in the US. That’s why many financial job seekers have come to Dallas to get recruited by the top-notch banks and financial corporations. The cost of living in Dallas is quite low. As a result, investment bankers and financial employees can save a lot of money working in Dallas.
That’s the reason Dallas is the place where most of the financial jobs are available in the US. The working hours are typical like any other states. If you want to grow in the investment banking domain, you need to work harder than most of the financial jobs available in Dallas.
Investment Banking Salaries in Dallas
In terms of other states, Dallas provides good compensation in the investment banking market. The average base pay of an investment banker in the US $76,778 per annum.
This salary is 20% less than the national average, but still, it’s quite handsome if we compare the compensation of an investment banker with the compensation of other financial jobs.
Since Dallas has many opportunities for the financial domain, the investment bankers can exitInvestment Bankers Can ExitAmong the several exit options available to investment bankers are: 1.Private Equity 2.Hedge Funds 3.Strategy Consulting 4.Fin-Tech 5.Advisory for large corporates. their jobs and can avail of many alternatives.
But the question still remains – why an investment banker will quit her job when the compensation is lucrative and growth opportunities are ample? The reason may be long working hours or better opportunities.
The exit opportunities available for exit routes are corporate finance, other financial jobs in the corporates, commercial banking, or starting one’s own business.
This has been a guide to Investment Banking in Dallas, their services offered, recruitment process, their culture, top Investment banks in Dallas, salaries, and exit opportunities. You may also have a look at the following article for learning more about Investment Banking –