Breaking Into Finance

In this conversation, Craig interviews Jessica Holton about her journey from investment banking at Morgan Staley and private equity at Carlyle to eventually attending Stanford GSB for her MBA and pivoted to serial entrepreneurship. Jessica founded two businesses (BLAZE Skincare and Ours) and is also of Access Distributed, a nonprofit organization that helps students from underrepresented backgrounds break into finance. Jessica shares the challenges faced by fellows and provides advice on networking and building relationships in the finance world. They also discuss the importance of in-person internships and how to make the most of remote work. Jessica offers frameworks for choosing the right path in banking and shares her experience transitioning to entrepreneurship. The conversation concludes with a discussion on the role of business school in personal growth and development. Takeaways Access Distributed is a nonprofit organization that helps students from underrepresented backgrounds break into finance. Networking and building relationships are crucial for success in the finance world. In-person internships provide valuable opportunities for learning and building connections. When choosing a path in banking, consider the people you will be working with, the types of deals you will be involved in, and your interest in the industry. Business school can provide a supportive environment for exploring entrepreneurship and personal growth.

In today's episode, I wanted to take a 1-week break from the interview model to talk about some investors and strategies that I admire and that have (or are in the process of) changing the industry. These are some important figures and strategies to study and understand on the road to becoming a better investor. Key Highlights: Robert Smith and Vista Equity Partners: Recognized for his pioneering insight into software companies' valuation, Smith's approach to leveraging these high-gross-margin businesses has positioned Vista as a leader in software investment Seth Klarman and Baupost Group: Klarman's philosophy of being able to price anything, regardless of the asset type, showcases the depth of value investing and the principle of margin of safety. His influential work, "Margin of Safety," is a must-read for aspiring investors Nelson Peltz and Trian: Through Trian, Peltz exemplifies how activist investors can drive significant changes within companies by advocating for more efficient operations and shareholder value maximization Pete Stavros and KKR: 50 years after Henry Kravis, George Roberts and their mentor Jerome Kohlberg started pursuing the first leveraged buyouts, KKR continues to innovate with strategies like Stavros' decision to offer shadow equity to employees. This action has shown in several pilot investments to lead to substantial operational improvements and value creation

Pete Fraser, an investment banking associate at Guggenheim, shares his journey from working in a steel mill into investment banking. He discusses the importance of finding a mentor and making conscious decisions about career paths. Pete also highlights the role of business schools in preparing students for investment banking interviews and the differences between bulge bracket and boutique banks. He emphasizes the need for intentionality and finding fulfillment in a career in investment banking. Pete also shares advice on dealing with imposter syndrome and the importance of setting priorities. Pete's book is Running with the Bull: A Survival Guide to MBA Recruiting (https://bdmrka.com/)

I got to sit down with Saumil Jariwala to discuss his path to private equity, including my path from consulting (not banking!) to PE. We also spend a substantial amount of type talking about the history and opportunity in the search fund space, a small but rapidly growing and highly profitable segment of private equity. For those who listen to the full episode, here are links to some of the additional educational resources Saumil mentions during the interview: 1) Stanford GSB Study: https://www.gsb.stanford.edu/faculty-research/case-studies/2022-search-fund-study-selected-observations2) HBR Review: https://hbr.org/2017/01/buying-your-way-into-entrepreneurship 3) Buy Then Build: https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs-ebook/dp/B07JKM2F5Q 4) List of prominent search fund investors: https://searchfund.org/

I'm joined by Kristen Meredith, a VP at Prysm Capital, who has carved a unique path in the investment world. Kristen is one of the lucky few to skip banking (she started her career at Blackrock) and then landed a PE associate role in Paris at Eurazeo, before landing her current growth investing role at Prysm. I've known Kristen for over a decade as a fellow Middlebury & Wharton alum, so it was particularly fun to hear her advice about building investment judgment, life as a PE Associate in Europe and some frameworks for how she evaluates growth investments.

Today I'm joined by Aaron Tobias, a Senior at Middlebury College and incoming Investment Banking Analyst at Morgan Stanley to talk about his recruiting journey as well as his advice for navigating the interview process. Aaron's free resource recommendation: Bill Ackman's Everything You Need to Know About Finance in Under an Hour (https://www.youtube.com/watch?v=WEDIj9JBTC8)

On this episode, Craig chats with Eddie Ackerman, Finance Operating Partner at Thomvest, about his career path and lessons learned along the way. We also do a deep dive on how the role of the CFO has evolved over the last 30 years and what that means for aspiring CFOs. CFOs require a combination of quantitative and qualitative skills, including financial expertise, data analytics, and strategic decision-making. The CFO role today requires substantially more strategic thinking than is has in prior decades.

On today's episode, Ian Becker and Ben Piekarz join the show to discuss their experience helping launch a student-run long-short equity fund at Brown University. They explain the mechanics of shorting stocks, how hedge funds use pairing trades to manage risk and they provide an example of a successful pair trade. Lastly, they offer advice for students interested in starting a similar strategy and building knowledge and experience in finance.

In the first of several appearances, avid listener Sherley Lopez Estrada, a Senior at Middlebury College, joins the show to talk about tips and tricks for reading finance news articles. On today's episode we talk about the best places to get free or cheap news articles and how to use news articles to begin developing a "view" on the markets.

After a few week's off, we're back to share a sneak preview of some great content we have lined up for this year. First full episode of 2024 will drop tomorrow!

On today's episode we're re-airing our most-watched episode, Intro to the Three Financial Statements. We've gotten a lot of new listeners to the show, and I want to make sure everyone knows that my best content came first - the deep dives on all the technicals needed to crush your interviews and break into finance.

In this episode Craig sits down with Sam Rosen (VP, Venture Capital at GIC) to discuss the current startup landscape, the pros & cons of going into venture vs. working at a startup, and some frameworks and advice for how to do your diligence on finding a startup to work for.

Ahead of Round 2 deadlines for several MBA programs in early January, we're breaking down the relative value of the MBA vs. Masters in Finance vs. CFA and how to know which one is right for you.

In a follow up to Episode 49's breakdown of the various functions in bulge bracket investment banks, Craig shares his thoughts on how to compare and contrast different IB opportunities along with a checklist of skills developed in each role.

On today's episode, we're using the ongoing OpenAI debacle to discuss the mechanics of how corporate governance works, why it matters for finance professionals and frameworks for understanding the relative power of CEOs, Board Chairs, and equity holders.

On this episode, we break down all the various divisions that are commonly found inside the "bulge bracket" banks, then go into a lot more detail on the investment banking division and the variety of roles that exist across IB. This episode is Part 1 of a multi-part series on the various roles, responsibilities and exit opportunities that exist across IB roles, divisions and firms.

On today's episode, we're sharing a Q&A session that Craig held with Will, a recent graduate from Castleton University who is eager to find a way into a private equity investing role. We touch on a number of topics including the value of a Masters in Finance program, the CFA and whether taking coding classes to learn some basic coding in languages like Python will give you a leg up in the process. For folks new to the show interested in similar questions, I'd highly recommend also listening Episode 4, where I talk to Austin Kipp about his journey from working in IT to investment banking at Credit Suisse and PE investing at Thomas H Lee Partners.

On this episode I catch up with Taylor Weekes, who is currently a first-year investment banking analyst at a bulge bracket bank. We touch on a variety of topics including Taylor's path to IB, advice for learning the technicals, strategies for seeking professional mentors and advisors, and her experience as a Black woman in finance. Taylor and Craig first met when she was a Sophomore at Howard and participated in the inaugural Wharton Partners In Equity Case Competition that he helped organize as an MBA student, so this episode was a fun reunion! Lastly, here are links to a few YouTube channels we discuss: https://www.youtube.com/@BreakingIntoFinance https://www.youtube.com/@AfzalHussein https://www.youtube.com/@KenjiExplains https://www.youtube.com/@PeterSu

On today's episode, I sit down with Charlotte Lawrence, Senior at Middlebury College at incoming investment banking Analyst at Goldman Sachs. Charlotte interned last summer on Goldman's Investment Grade Capital Markets team, which is part of their Financing Group. During the interview Charlotte gives some great advice for how to prepare for any financing group Superday, talks a little about a day in the life of a debt capital markets banker, and along the way we parse through some of the alphabet soup of financing IB terminology. Charlotte's free resource recommendations: Five Things to Start Your Day (Newsletter): https://www.bloomberg.com/account/newsletters GS Exchanges (Podcast): https://open.spotify.com/show/4QYK5hxHNeXnevtUTsn5a7?si=56aeaba90ac64198

On today's episode, Craig sits down with Joe Magdovitz, VP and Head of Finance at Vouch Insurance. After beginning his career in investment banking and at the Fed, Joe pivoted to startup finance leadership. After getting his MBA from Tuck, Joe worked in FP&A at eBay and then went on to lead the finance function at a range of mid- to late-stage startups including Kiavi, Workrise and Vouch Insurance.