All, I am a 2nd year MBA student at a top20 school. My background pre-MBA was in high-tech. I was targeting investment banking/investment management jobs through campus recruiting. Though I did get a few final rounds with leading banks, unfortunately I don’t have an offer from them. I recently received an offer for a role in Treasury at a Fortune20 company. I don’t know my exact role yet but I could be doing any of the following: “Managing front office trading in capital markets and foreign exchange. Risk Management and Funding Strategy. Capital Structure and Treasury Operations.” I will have some say in which of these three groups I get placed. I am looking for some input on which of these areas would provide me with the best exit opps (if any). My eventual target is the PE/HF/IM/IB area. Would it be possible/likely to make the switch to any of these areas after a year or two of treasury experience? If not, what areas could I transition in to? I don’t want to do treasury for life, so it’s important for me that there be good exit opps. Also, the pay they have offered me is what an average finance MBA gets, however is on the lower side if you took in to account that the position is in very high cost of living area. If you have any idea of typical post-MBA salaries in the treasury area, please let me know. I need to make a decision soon and would appreciate any insight you could provide. Thanks. Regards, FFGuru
“the PE/HF/IM/IB area”? And you would like to live in the NYC/Chicago/LA/Dallas area?
I don’t know your situation and how long you want to try and hold out for a job in your target area, but you might find that getting in to those areas may not be any easier after a stint in Treasury… that being said, I don’t necessarily think that it’s going to be any harder.
JoeyDVivre, You have a point. My interest has been IB but I have so far been unsuccessful in my efforts to get in to that area. After IB, I would like PE and perhaps HF. Since my plan A has not worked, I am still working on my plan B. DarkHelmet, Thanks. I am continuing my search but at the same time want to understand what I can do with this Treasury job. All, Any info/views about the job itself? Pluses? Minuses? Thanks. Guru
FFGuru, The role of an investment manager in a treasury capacity can be exciting. Well, maybe not IB/PE exciting, but you do have the opportunity to touch a lot of different areas. I began my career in middle market sales, moved on to HNW, and finally in institutional sales. I knew that I wanted to get to the buyside, and had an opportunity to move to a Fortune 50 company, managing more money than most smaller shops will ever have. I gain experience in not only asset management, but refined my presentation/negotiating skills. There are a couple of other up sides to consider. First, hours. I was working 80+ a week doing HNW. In Treasury, it will be more like 40+ depending on the shop. Secondly, it’s great to have a hand in a lot of different projects. I was just managing the investments for the firm. Sounds like you’ll have the ability to do FX and Risk Management. I think that Corporate Treasury can be a great place to hang out for a couple of years to hone your skills. You’ll have access to the best managers on the Street, seeing as how they’ll all be banging on your door to get in. I would give it a serious look. Cheers!
Treasury Management is broad. I would say it relates most with fixed income asset managment, particularly management of cash, paper and bills. Also, treasury is closely aligned with risk management i.e. exchange rate risk. Lastly, with respect to corporate capital structure decisions, treasury officers are the point people receiving the most in depth exposure to the underwriting process, with the exception of the lawyers, and key senior finance officers e.g. SVP Finance, CFO etc. Treasury is broad and is most closely related with Corporate Finance and Fixed Income Asset Managment. I would suggest spending some time figuring yourself out and actually learning about the various industries you mentioned. You lumped four distinct areas of areas of finance that require different skill sets, and have different work environments, as is the case with IB and IM. Your talking about apples and oranges here like they are the same thing. It suggests a superficial desire to work in “high” finance.
Golfmaniac, Thanks for your response. [There are a couple of other up sides to consider. First, hours. I was working 80+ a week doing HNW. In Treasury, it will be more like 40+ depending on the shop. Secondly, it’s great to have a hand in a lot of different projects. I was just managing the investments for the firm. Sounds like you’ll have the ability to do FX and Risk Management. I think that Corporate Treasury can be a great place to hang out for a couple of years to hone your skills. You’ll have access to the best managers on the Street, seeing as how they’ll all be banging on your door to get in. I would give it a serious look.] The place from which I have an offer does have access to the best banks on the Street. In fact on the day I interviewed, they had one of the top two (GS, MS) on-site pitching them some product/service. Can this access to the big bankers be leveraged to do something else with the banks, like Fixed Income? ==== Gouman, Thanks for your response. [Treasury is broad and is most closely related with Corporate Finance and Fixed Income Asset Managment.] Any thoughts on the exit opps from Treasury? If I decide I don’t want to do Treasury, what options other than regular corp finance am I likely to have? [I would suggest spending some time figuring yourself out and actually learning about the various industries you mentioned. You lumped four distinct areas of areas of finance that require different skill sets, and have different work environments, as is the case with IB and IM.] Point well-taken. I am pursuing two different paths: (IB/PE and IM/HF). After getting final rounds with the best in the IB business unfortunately I didn’t get an offer and therefore am having to rethink. Guru
Bumping this up for more input.
FF guru - I’m at what is generally considered one of if not the top corporate treasury dept, so I can possibly add some insight. In general entry level work can be very good exposure because you’re typically dealing externally with higher-level employees like you’ve said; e.g. when we issue debt I never see the analyst but talk to the MD. This can be turned into exit opportunities, but from what I’ve seen it really depends; we’ve had people go directly into PE, BB banks, etc. whilst I’ve also seen people struggle trying to switch out. May go without saying but Treasury work is probably the best experience for doing Treasury work, but it can add a unique perspective since you really have to focus on what’s best for the company and see the inside of a company from what may be a very strategic/holistic perspective versus more of a pure selling orientation at a bank or more externally in research. Also I think, particuarly if you are looking at a short horizon, your exit opps will depend a lot on what you do there. FX & Risk Mgmt could be very interesting on the derivatives side. I would be hesitant to go to Treasury Opps (which may be seeing where cash is, talking with retail banks, nothing too exciting) but Capital Structure could be quite good if you’re dealing with strategic funding decisions (what do we want our balance sheet to look like, which projects get capital, how do we generate cash, how much cash do we need, etc.) to go into banking or fundamental research, possibly credit/HY type of stuff given the heavy balance sheet & cf orientation combined with the CFA. Our office is rotational and also includes non-core treasury activities like M&A, restructuring, structured finance and the like. Honestly I doubt I would have chose it if not for the 1) rotational aspect and 2) non-treasury type activities like M&A, but including more of these strategic areas is becoming more common in large treasury shops.
Hi DirtMirt, Thanks for your response. [I’m at what is generally considered one of if not the top corporate treasury dept, so I can possibly add some insight. In general entry level work can be very good exposure because you’re typically dealing externally with higher-level employees like you’ve said; e.g. when we issue debt I never see the analyst but talk to the MD. This can be turned into exit opportunities, but from what I’ve seen it really depends; we’ve had people go directly into PE, BB banks, etc. whilst I’ve also seen people struggle trying to switch out.] Without giving out too much information, would your job be with a tech company? What type of role within treasury are you referring to - Capital Markets, Debt structuring, Debt issuance or something else? The people that made it to PE/IB, what type of roles did they get in those areas? What I am trying to figure out is if I want to get out of Treasury, what options I would have. [May go without saying but Treasury work is probably the best experience for doing Treasury work, but it can add a unique perspective since you really have to focus on what’s best for the company and see the inside of a company from what may be a very strategic/holistic perspective versus more of a pure selling orientation at a bank or more externally in research.] I agree, Treasury is the best Corp Finance job you can do, with the exception of M&A. [Also I think, particuarly if you are looking at a short horizon, your exit opps will depend a lot on what you do there. FX & Risk Mgmt could be very interesting on the derivatives side.] Would these be trading type roles? [Capital Structure could be quite good if you’re dealing with strategic funding decisions (what do we want our balance sheet to look like, which projects get capital, how do we generate cash, how much cash do we need, etc.) to go into banking or fundamental research, possibly credit/HY type of stuff given the heavy balance sheet & cf orientation combined with the CFA.] Ok, I think that could be a good exit opportunity. [Our office is rotational and also includes non-core treasury activities like M&A, restructuring, structured finance and the like. Honestly I doubt I would have chose it if not for the 1) rotational aspect and 2) non-treasury type activities like M&A, but including more of these strategic areas is becoming more common in large treasury shops.] My position is a pure treasury one. They have a rotation program that includes M&A along with Treasury, but I am not part of that. How common is it for people to move from Treasury to Corp Dev/M&A, where you are? I really appreciate your insights and would like to discuss this further with you if that is OK with you. Please let me know if I can email you, or you can email me at FFGuru08 AT gmail DOT com. Thanks. FFGuru
Not tech; an industry that is very capital intensive. I believe that type of industry is probably best for treasury type roles because everything is so dependent on cash flow, ROI, balance sheet, etc. For example, at my company the CEO, CFO, a lot of the heads of operating units started in treasury. That said I am aware several tech companies have very strong treasury operations, albeit possibly not as strategic in nature as a company that depends more on capital investment. I.e. Microsoft certainly has some $$$ to play around with. For exit opportunities, it really depends. I think part of the reason exit opportunities are good (not to sound pretentious) but in addition to the work experience if a Wharton or Columbia grad decide they want to switch into banking or similar change (particuarly earlier in their career) they typically don’t have too hard of a time. The relationships with external parties can certainly be used as well. I’ll try to email you over the weekend to give more detail - have been very busy at work the past few days.
Dirt McGirt, The firm I am considering certainly has a log of $$ to play around with. I look forward to continuing the discussion over email Thanks for your insights. FFGuru
FFGuru, I’ve found that having access to the likes of GS, MER, MS, etc. can be beneficial. I’ve developed several close working relationships with some of the product guys as well as the PMs. I’m not saying that they’ll ever offer me a job, but you certainly can use the relationship as leverage.
Golfmaniac, What type of investments do you manage? The group I am considering deals mostly with debt securities, debt issuance and foreign exchange. What do you see as you exit options if you ever decided you wanted to something else? Thanks. FFGuru
FFG, Right now, I manage the balance sheet for a Fortune 100 company, exclusively fixed income securities. I also am the lead for the retirement plan, which offer both equity and fixed income exposure, and oversee the share repurchase program. Seeing as I am viewed as the primary contact for the firm with regards to investments, I come across a lot of individuals from the St. I have been able to cultivate these relationships over a period of time, and can call on these people should I need a favor. Should there ever come a day when I want to change career paths (preferably after Level III), I feel pretty confident about making the jump. Depending on the shop you land in, and the total balance of the asset base, and the risk tolerance of the firm, Treasury can actually be a great place to work on honing your skills. Prior to my current position, I was at a Fortune 50 company that had both equity and fixed, with multiple mandates. I was able to trade for total return and learned a lot in the position. Bottom line…Treasury can be a great place, if you’re in the right position. If the job is stricly cash management, using money funds or very short duration, you may end up being bored unless there are other responsibilities. Cheers!
Hi Golfmaniac, The group that I have the offer from, is involved with equity, foreign exchange, fixed income, share buybacks etc. Of course, if I joined the group, I will get to work in only one or two of those areas in the first year, but over a period of time, I am sure I will have pretty wide exposure… I had a couple of other questions that I would like to discuss over email if that is OK with you. Could you let me know your email or email me at ffguru08-at-gmail-dot-com? Thanks for sharing your very valuable insights. FFGuru
Thanks goflmaniac. Have sent you a note. -FFGuru
FFG, Can you please resend. My kid deleted the message. Thanks.
Just resent.