CORPORATE FINANCE
Finance professionals working in corporations are not mere bean counters. They are business partners who help the company (more…)
- Published in CORPORATE FINANCE
INVESTMENT RESEARCH AND ANALYSIS
Though not too common in this region where you see the research analysts on TV, talking about market movements and recommending stocks or bonds to buy or sell. Research or investment analysts are more than talking heads; they stake their reputation on ideas that “stand the test of the market.” Being a research analyst can be a high pressure job spent poring over large amounts of financial information from various sources, analyzing potential investment returns and risks, and forming recommendations to investment decision makers. Analysts examine both the micro and the macro, looking at what individual companies are doing, at the performance of the industry, at how outside events are affecting the industry, and at the historical and global context in order to explain events.
They also try to give at least an indication of what is likely to happen next, as well as identify trends and explore their implications. The resulting analysis and must be presented in a comprehensible narrative to clients. Buy-side analysts typically work for asset management firms, while sell-side analysts work for securities brokers. Analysts may specialize in certain sectors (for example, banking, oil and gas), countries, or markets. Among a research analyst’s rewards are the intellectual satisfactions of being recognized as an expert in your field and, of course, being proven right by the market. The job opportunities may depend on areas of specialization that are in demand and requires strong quantitative, analytical, and communication skills are essential.
- Published in INVESTMENT RESEARCH AND ANALYSIS
PRIVATE EQUITY
With a longer investment horizon, private equity (PE) investors carefully pick private companies with potential for growth in value or troubled or undervalued listed companies with the aim of turning them around. Like professionals in other fields in the investment industry, those who work in private equity are involved in identifying and evaluating potential investments and executing those transactions. Junior professionals, such as analysts or associates, perform financial modeling and analysis and help with due diligence and documentation, whereas senior executives, such as principals and partners, make investment decisions, find potential investments, and raise money.
The ability to source deals, maintain deal flow, and retain enough funds to execute those deals are critical in this highly competitive field. Thus, in-depth local knowledge and a vast network of contacts across various industries work to one’s advantage. Venture capitalists focus typically on startups and may invest in several rounds of financing. On the other hand, buyout funds invest in established businesses and help enhance their performance over time through operational or management improvements.
“With venture capital, you invest in a company, then you grow the company, and in three or four years, you exit with a handsome multiple on your investment. The results are visible,” says Derrick Kyujeong Han, CFA, investment manager at Tongyang Investment Corporation. Whether it’s a buyout or venture cap deal, success is measured by a well-timed exit from these investments that maximizes gains for investors. Professionals with investment banking experience (especially in mergers and acquisitions) or with strong local knowledge in a specific industry or market where significant deal flow is expected may have an edge over others for private equity jobs.
Despite the slowdown, PE firms are sitting on plenty of capital and some firms are still hiring, especially those with a strong focus; while this role requires strong analytical, quantitative, and communication skills are essential. Initiative to find investment opportunities and business acumen are also important
- Published in News, PRIVATE EQUITY
