Overview of Investment Banking in San Francisco
If you have ever talked to any investment banking in San Francisco, he would talk about how overhyped the New York’s investment banking is. And somehow it is true. Just because New York is the largest financial center of the US, it’s natural to be enticed by the hype and exaggeration. But the truth is San Francisco in now way is lesser than New York in terms of pay-package, working hours, or the way the bankers approach investment banking.
The actual difference lies in the industries that San Francisco covers, the exit routes that the investment bankers in San Francisco opt for, and also the cost of living in San Francisco. For example, if we look at the industries the investment banking in San Francisco concentrate on, they are technology and healthcare. On the other hand, for New York, the industries are much diversified.
If you would like to start a career in investment bankingCareer In Investment BankingAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. in the US, your first focus should not be region; rather what specific industry you would like to work in. In terms of cost of living, San Francisco is quite expensive (in some case more expensive than New York).
Let’s now look at the services offered by the investment banking in San Francisco.
Investment Banks in San Francisco – Services Offered
The services offered by the investment banks in San Francisco can be divided by two broad dimensions. One is a strategic advisory and another is the financial advisory. Since the industry focus on the investment banking in San Francisco is one technology and healthcare, these banks handle deals in the similar domain.
#1 – Strategic Advisory:
Under strategic advisory, there are top three services that the investment banks in San Francisco offer.
- The first one is a mergerMergerMerger refers to a strategic process whereby two or more companies mutually form a new single legal venture. For example, in 2015, ketchup maker H.J. Heinz Co and Kraft Foods Group Inc merged their business to become Kraft Heinz Company, a leading global food and beverage firm. advisory. Under this, they work with clients that don’t want to expand their horizon by merging with a similar company or a company that offers the competitive advantageOffers The Competitive AdvantageCompetitive advantage refers to a benefit availed by a company that has remained successful in outdoing its competitors in the same industry by designing and implementing effective strategies in offering quality goods or services, quoting reasonable prices and maximizing the wealth of its stakeholders..
- The second service the investment banks offerService The Investment Banks OfferInvestment 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. is acquisition advisory. Clients who need this service look for a target company that is a perfect fit for getting acquired. Clients take the help of the investment banks to ease off the technicalities for them and smooth out the process.
- The third service that investment banks offer is divestitures advisoryDivestitures AdvisoryDivesting refers to the act of partially or entirely selling organizational assets to generate funds urgently.. In this case, the clients want to liquidate a subsidiary businessSubsidiary BusinessA subsidiary company is controlled by another company, better known as a parent or holding company. The control is exerted through ownership of more than 50% of the voting stock of the subsidiary. Subsidiaries are either set up or acquired by the controlling company. and want to take the help of the investment banks in the process.
#2 – Financial Advisory:
Under financial advisory, there are also three significant services.
- The first one under financial advisory is private capital raising. Under this service, the bank helps the clients get a way to raise capital.
- The other two services that are offered by the investment banks are IPO advisory and restructuring. If a company wants to go for public listing, then the company needs the help of an investment bank.
Even for restructuring, the investment banking in San Francisco helps out their clients in making the company more profitable.
List of Investment Banks in San Francisco
- Goldman Sachs
- Morgan Stanley
- Bank of America Merrill Lynch
- Business Capital
- Instream Partners LLC
- Inverness Advisors, LLC
- Assay Advisory
- Venturi & Company LLC
- Aurus Advisors
- Orion Capital Group
- TriSpan Partners
- Vrolyk Capital Partners
- Martinwolf M&A Advisors
- Starlight Investments, LLC
- Boston Meridian
- JMP Group Inc
- Aquilo Partners
- LRG Capital
- Barnard Montague
- Arbor Advisors
- Financial Technology Partners
- Eaton Capital Corporation
- Ridgecrest Capital Partners
- Atalyst Financial Group
- Wells Fargo FINET
- GVC Financial Services, LLC
- WaveEdge Capital
- Inertia Advisors
- Silicon Valley Partners LLC
- Steelhead Advisors LLC
- Atlas Technology Group, LLC
Investment Bank Recruitment Process in San Francisco
Recruitment isn’t a big deal if you want to get placed in investment banks in San Francisco. But it’s important how you approach the recruitment process. If you want to get into a specific niche (or industry), it’s better that you prepare for that particular industry and be thorough with the recent deals that happened.
At the same time, you need to pay special heed to the network. Once you decide to start your career as an investment banker, you need to network like your life depends on it. If you can grab a couple of internship with reputed investment banks, you would be on your way to a lucrative career.
Culture in Investment Banking San Francisco
In the US, the culture is slightly different in every region. But the things that matter are more or less all the same. For example, if you talk about working hours, in San Francisco, it’s at least 85 to 90 hours. In New York, it’s almost similar. Even the cost of living in both of these regions are quite the same.
But if you talk about opportunities, New York is far better than San Francisco. But if you feel that you want to work in only technology or healthcare, San Francisco is a good option.
Investment Banks Salaries in San Francisco
The compensation for investment banking in San Francisco is quite good. As per Glassdoor, here’s the average salary of an investment banking in San Francisco –
The average salary of an investment banker in San Francisco is US $128,836 per annum.
Investment Banking Exit Opportunities in San Francisco
For investment bankers, there are many exit opportunities. But in New York, the IB exit opportunitiesIB Exit OpportunitiesAmong 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. are more than in San Francisco because New York is the financial hub of the US.
Still, if you want to quit investment banking, you can join a technology start-up or you can go in completely a different career domain like private equity or a hedge fundHedge FundA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.. Or else, you can also join a corporate and work in the corporate finance domainWork In The Corporate Finance DomainFinancial analyst, cost analyst, credit manager, cash manager, and benefits officer are some of the most popular career paths in Corporate Finance..
This has been a guide to investment banking in San Francisco, a list of top investment banks in San Francisco, and the services that they offer. You may also have a look at these Investment banking services in the below countries –