Global Corporate Investment Bank Ernie Choi Chris Jones GPM Autos & Industrials GPM Chemicals, Metals & Mining firstname.lastname@example.org email@example.com Global Corporate Investment Bank (GCIB) Citigroup's Global Corporate and Investment Banking Group is one of the premier organizations for meeting the financial services needs of corporations, governments, and institutional and individual investors around the world. How we achieved this is by constantly putting our clients first. Focusing on their needs and using that as a basis to manage our client relationships has better equipped us to realize our main objectives: to be number one in every product category in every market we do business, and to be recognized by our clients as their best source of objective expert advice and execution capability. As these statistics demonstrate, we must be doing something right: Advised on 4 of the 8 largest M&A transactions in the world. Co-led the $3 billion IPO for China Life Insurance, the world's largest initial public offering in 2003. Helped clients raise more than $500 billion in proceeds in debt issuance around the world, almost $150 billion more than our nearest competitor. Citigroup senior-managed 690 long-term negotiated and competitive public finance issues totaling more than $52.4 billion. Citigroup's Global Corporate and Investment Banking Group provides world-class global equity capabilities for corporate, institutional and retail investors through our dominant equity sales and trading platform, industry-leading research capabilities, top-tier institutional distribution capabilities and the second-largest retail brokerage network in the U.S. We continue to deliver and expand on the unprecedented capabilities of Citigroup: a global product platform, local expertise doing business in more than 100 countries and business standards that lead our industry. As a part of Citigroup, we're able to seize, create and build on an ever-expanding world of opportunities for success. Yours and ours. That's something we achieve by placing teamwork, excellence and leadership at the centre of everything we do. If you'd like to find out what it's like to work across disciplines, seek advancement and ultimately define your own career, just bring your enthusiasm, curiosity and open mind. At Citigroup, it's about you. GCIB Capital Markets Corporate Global Banking Global Transaction Infrastructure Services Asset Based Finance Division Global Corporate Finance & Global Finance: Securitization (Global Portfolio Management and Equity Capital Operations Global Markets Relationship Bank) Equity Sales & Technology Investment Trading Banking Fixed Income Capital Markets Fixed Income Sales & Trading Public Finance Quantitative Trading & Research Structured Corporate Finance Yield Book What Is The GCF Program? Global Corporate Finance Program (GCF) The GCF Analyst Program is a two-year on-the-job training experience used to develop and enhance many key skills necessary in the world of business and finance. Your career with Citigroup GCF begins with an intense 11-12 week training program where you will learn the fundamental concepts and practical applications of financial accounting, basic finance, financial statement analysis, and excel modeling. The final three weeks of training consist of a risk seminar that will bring all that you will learn in the first eight weeks together in the form of a Credit Approval Memo. It is in this risk seminar that you get the best idea of what you will be doing for the remainder of your two-year tenure with Citigroup GCF. Upon completion of the training program you will be placed in one of several industry groups where you will be a Global Portfolio Management (GPM) analyst. Global Portfolio Management (GPM): GPM proactively manages the combined loan portfolios of Citigroup’s Global Corporate and Investment Banking Group, with responsibility for analysis, approval and monitoring. Our goals include maximizing returns and increasing the liquidity of the portfolios through the intelligent and strategic use of capital. We achieve this by maintaining a rigorous credit approval process and by executing portfolio optimization strategies using derivatives, securitization and secondary loan sales. By enhancing our balance sheet strength with capital markets knowledge and expertise, GPM provides Citigroup with a unique competitive advantage. GPM is organized along industry and market lines similar to that of the Global Relationship Bank, with teams in the U.S., Europe and Japan. GPM professionals can be assigned to specific industry portfolios, broken down into the following business segments: GPM Portfolio Groups Global Consumer & Healthcare Global Financial Institutions Global Industrials (Includes Autos, Aviation, Shipping & Logistics and Gencorp Forrest Products) Global Technology, Media and Communications (Including Gaming) Global Power, Energy, Chemicals and Mining Additional GPM Portfolio groups include Leveraged Portfolio and Real Estate. As a GPM analyst, you will learn about and keep track of a portfolio of clients in your respective industry. You will be responsible for modeling a company’s present and future financial position (revenues, liquidity, leverage, etc…) based upon news from the company (via public and private meetings and conference calls), industry news and Macro-economic conditions. You will be working very closely with the Global Relationship Bankers (GRB) who are the marketing counterpart of the GCF team. Global Relationship Banking The Global Relationship Bank (GRB) is a leading provider of financial services to top-tier multinational clients worldwide, serving the financial needs of the world’s preeminent corporations and financial institutions at both their head offices and at their subsidiary operations, wherever they may be around the world. The clients we serve define our organization, and we’re staffed by relationship bankers whose task is to understand the wide range of banking issues facing these highly complex institutions. Combined with a keen appreciation for the broad set of services offered by Citigroup, this understanding forms the basis for the effective delivery of innovative, value-added solutions for our clients. Serving companies in over 100 countries, the GRB is organized primarily along industry lines. This organizational model yields a capability which draws on a deep understanding of industry trends, as well as market knowledge based on a local presence which dates back up to 100 years in many of these markets. The result is a steady stream of innovative cross border and local financial solutions, tailored to the specific needs of individual clients. Our global relationship bankers are specialists in a full array of corporate banking solutions, from cash management, foreign exchange, custody, clearing, and loans, to capital markets, derivatives, and structured products. Importantly, they also work in tandem with their investment banking partners to introduce our investment banking capabilities to their relationship clients. They can also draw upon the entire spectrum of Citigroup’s services beyond corporate and investment banking to serve the needs of clients and their employees, all with the ultimate objective of helping their clients succeed in their businesses around the world. The GRB & The GPM As One At any point in time, a company will need loan financing (term loans, revolving credit facilities, etc…) for various aspects of their business (fulfillment of working capital needs, mergers & acquisitions, bridge loans for debt capital markets offerings, etc…). While these loan products are not large revenue generators, they are used to build relationships with clients with the hopes that when large revenue opportunities present themselves Citigroup will be asked to take part. Both the GRB and the GPM teams fall under the Citigroup Corporate Bank. The GRB is the marketing side which maintains relationships with clients and recognizes and facilitates their needs. The GPM is the credit side that keeps track of a client’s credit position in order to minimize Citigroup’s risk in the transaction. As an analyst out of the GCF training program, you will be labeled with the title of a GPM analyst but in reality, you will be working on both sides. You will take part in client meetings/pitches and support discussions as well as your primary responsibility of credit and risk analysis. Analysts’ Perspectives Ashley Glaubach University: University of Pennsylvania Major(s): Communications and History E-mail: firstname.lastname@example.org I had taken a number of Wharton classes but was actually a student in the College of Arts and Sciences. Coming from a non-business oriented background, I felt training was extremely helpful and truly put me at a level playing field with analysts who had studied business all through undergrad. While it was not as easy of a transition, and the learning curve is and continues to be real steep (which makes the work enjoyable) I think if you work hard, you can be successful - there are certainly enough resources available. Financial Institutions: My experience as an analyst has been awesome. I work in insurance and do a bit of work for banks as well but since financial institutions are highly regulated, expert industry analysts do most of our credit work. I have worked on one annual review and helped the industry analysts gather material on the clients they are reviewing. In addition I work on the relationship section of the approval since our group has the most contact with the client. I do put together approval memos for deals, work on call reports and summaries of what transpires in meetings. I have had a lot of client contact…I am actually leaving for an investor/lender conference to Philadelphia as soon as I finish writing this. The 3 Managing Directors I work directly for have been extremely willing to teach me the business and include me on conference calls, meetings, email exchange, etc… I worked on some modeling and deep credit analysis for one of our clients with respect to the Spitzer investigation. On the Banks side, I try to read as much information on our clients and give my senior banker background for all her meetings. I do a lot of Bloomberg work to come up with the clients debt distribution and what maturities they may have coming due. I also work on internal reciprocity information (since we are a bank and our clients are banks), to see where revenue came from and who it is paid out to, etc. The most enjoyable part for me is coming to work really liking the people I work for. I think that is extremely important in any job and I work with intelligent individuals who challenge me on a daily basis but who also take the time to ask me how things are and make sure work is not my entire existence. I felt training was extremely detailed and really helpful. While 12 weeks learning the fundamentals can never prepare anyone completely for a new job, I felt that the skills I obtained have been transferred to the work I do and provided a great launching pad for my career. The other analysts have been a great network of people to know and a huge support system to have when entering a new environment. Citigroup is a great institution and a great place to work. I feel that I have been really fortunate to meet the people I have made friendships with. Ali Hassan & Paul Giarratano Ali Hassan - Stanford (BA in Economics and BS in Mathematical & Computational Science) Paul Giarratano - Georgetown A&S (Economics and History) E-Mail: email@example.com Aviation: We cover: Airlines, Aerospace and Defense, Airfreight (FedEx) Airlines: have already seen one airline bankrupt; tough credits; reports impact decisions by senior management; when decisions are tight (as they are in airlines) the analysis and models you put together become the basis for conversation (so you get a feeling of being instrumental); exposure to DIP financing; leasing; Asset Based financing; some derivatives with respects to fuel hedging; our clients are front page news everyday Defense: interesting because government is the client; requires understanding of government processes, government contracting, perspectives on military strategy going forward, perspectives on corruption (i.e. Boeing scandals, etc.) GROUP DYNAMIC: Aviation is small; only 8 people (including 2 Analyst, 2 Associates, 1 Portfolio Manager, 1 GRB Managing Director, 1 GRB Director and a Credit Admin) Small size -> no junior bankers so the senior bankers know you. Small size -> perhaps more collegial Generally supportive group since everyone knows each other well. SOCIAL: Didn't know anybody in NYC before coming. Can say I made really great friends with many in training - probably lifelong. Meeting people in the program has eased the transition from my previous location; one shouldn't have anxiety about this aspect. In general: good hours, good experience, GOOD PEOPLE and good pay TRAVEL: Got to represent Citigroup at Annual Aircraft Valuation Conference (Washington DC) - met folks from Bombardier, Airbus and GATX Wendy Zhang School: University of California at Berkeley Major: Business Administration & Economics E-mail: firstname.lastname@example.org Leveraged Portfolio Group: Our group deals with mostly non-investment grade companies across all industries. I like it because I get exposure to different industries, rather than just one industry for two years. I cover about 12 companies, and they range from healthcare to packaging to private equity firms. It's interesting to learn about the different dynamics that affect companies that are having trouble. Our job as analysts is to basically know the company inside and out. When companies want to do refinancing and/or amendments, it's our responsibility to coordinate with different areas of the bank and provide support to the senior bankers. On a day to day basis, I'm usually working on reviews, talking to lawyers about amendments, updating amortization schedules, commitment reductions, etc. In terms of life and culture of the group, I would say this is probably the most diverse group, and the analysts and associates often go out for drinks together after work. Analysts also have the opportunity to do a lot of traveling because our bankers frequently go to visit clients. Paul Choi University: Columbia Major: Finance Real Estate: The Real Estate Group of the GPM is a recent break off of the U.S. Leveraged Portfolio Group. Responsibilities and Tasks as a first-year analyst: Write risk reviews on companies within all sectors of real estate (13 companies diversified in homebuilding, office, multi-family, lodging, and residential). Attend bank meetings. speak with companies about their business plan, capital structuring, etc... Talk with clients about letter of credit issues. Create and present an internal portfolio review for the head of global risk management Courtney Meehan University: Bucknell University Majors: Management & Economics E-mail: email@example.com Autos & Industrials: Our industry works with the major auto and parts suppliers in the industry to supply them financing. I've worked on deal memos, quarterly updates, briefing memo's and client presentations. Typically, I'll work with associates and VPs on quarterly updates, annuals etc. and bankers, VPs, and associates on deal and briefing memos, and client presentations. Working with all three "layers" of the industry team really gives you a good perspective on what everyone in the group's function is. I've also sat in on both client support calls, as well as client term-sheet negotiation calls. Everyone in the Autos and Industrials group has been extremely open to questions and very helpful with corrections and explanations. Training: Training was very intense. There are times when all the information and work that was expected to be completed was overwhelming but in the end, all the hard work paid off. The key to making it through training is time management...knowing what you don't understand and focusing on that, rather than going over what you do know. Everyone in training was extremely supportive and someone was always willing to help. The friends you make in training, you'll keep throughout your work experience at Citi. Social events during training were also very fun because they allowed everyone to socialize in a setting other than the classroom. Rory Boyle Northeast Forrest Products (GenCorp) -- National Corporate Bank (NCB): The National Corporate Bank is a new middle market initiative which is planned to make anywhere from $5MM-3B in revenues (still in the works). Pros: -Brand new credits -A lot of opportunity -You will be on the same level as the bankers regarding knowledge of the client -Increased responsibility (GenCorp as well b/c they give you your own clients and let you run with it based on ability) -Your credit work will play essential part in forming a foundation for the relationship -Very small deal team; not hierarchical -->work directly with higher ups (also true of GenCorp). -Likely a lot of travel: bank meetings, due diligence, lenders meetings Cons: -Uncharted territory -Future somewhat uncertain on a long-term basis Rebecca Kruger & Mike Bruneau Rebecca Kruger - Boston College E-mail: firstname.lastname@example.org Mike Bruneau - Tufts University E-mail: email@example.com Power: Structure: Our group has a unique structure that I think is really beneficial to incoming analysts. There are currently four 2-person teams and each team covers 15 names together. Each team has one newcomer and one veteran of the group. When Mike and I arrived, we were each assigned to a team with either a third-year analyst or an associate. This is a great structure for a couple of reasons. (1) When Mike and I arrived to the group, our team-member served as the person who could answer all our questions. Of course the rest of the group is available for our questions, but it's nice having a go-to person. (2) No one has to cover a company alone. Since there is a 2-person team covering each name, there are always at least 2 people very familiar with every company. That way if one person is out, there is still coverage on that company. Daily Life: Get in around 8:30 and read the most recent power news publications. Some of us keep a file on recent news stories on our companies; a helpful resource when it comes time to do the annual review. We mostly do annual reviews, credit approval memos and CLMRs. In addition, there are a few tasks that the group has to do on a regular basis, and these tasks are split evenly among all of us. For example, I keep track of all the requests we send to GPO that involve selling down our exposures in loans. Mike is in charge of tracking merchant energy exposure, which has been identified as a high-risk area by the firm. We regularly interact with the GRB when we are working on a deal. Sometimes we are involved in pitches, which involves coming up with ideas with the bankers to sell to the client and making the placemat. When we are involved in these types of projects, we will most likely go on the pitch as well. Travel: So far travel has been minimal. Our group takes trips to go to bank meetings at the launch of a deal, either at a NYC hotel or at the company, wherever that may be. The group also goes to closing dinners, usually at the Company. Training: Based on what our friends at other banks tell us, the training program at Citigroup is unmatched anywhere else. The instructor is phenomenal; as good, if not better, than the professors I had in college. It's amazing what you can pack into your head in 2 months! It's also a time to get to know the people in your training class and make lasting contacts. Frank Wang & Michael Lee Frank Wang - University of Pennsylvania (Economics) Michael Lee – University of California at Los Angeles (Business and Economics) Consumer & Healthcare (C&H): C&H covers a wide variety of names, usually split between three subcategories: Branded Consumer, Retail Clients, and Healthcare Clients. During your time as an analyst, you will cover companies from all three categories, though you may have more of a focus on a specific area within the three broader categories. Those with an interest in cosmetics may cover all of the cosmetic companies but will also have retail and healthcare names in their portfolio. Branded clients will differ from Retail clients which will differ from Healthcare clients. The type of financing and analysis required of each broad sector group will differ and a variety of skills will be developed as one works from one to another. Certain types of companies tend to be more leveraged than others and you will have a fair mix of investment grade and non-investment grade companies in the portfolio. The variety of names (and well-known names) in the C&H portfolio makes for an interesting mix; anything from Tommy Hilfiger, to Limited Brands, to PepsiCo will be covered in the portfolio. Learning about each specific industry can be a challenge and is always interesting. The inner workings of Tommy will differ significantly from Coke and will differ again from Phillip Morris; every different name provides an opportunity to learn something new and broaden your skill set. Day-to-day analyst duties include: Writing annual reviews to approve our facilities extended to a client Writing deal memos to approve new revolvers, acquisition financing or a specialized company-specific financing Modeling financial projections for a review or for an event (eg.acquisition, divestiture, litigation) Creating company Public Information Books (PIBs), which is a compilation of financial data, recent news and miscellaneous other information Creating presentations that are used by bankers during client meetings Coordinate with counterparties in other areas of the bank as needed Participating in bank meetings and discussions with clients (may include traveling) About the group on a social level, the bankers, associates and analysts are all treated equally, and there are occasional group-wide social events both during the day and after work. We have many opportunities to become closer with one another during working hours through group meetings (~every 2 weeks) and frequent interaction on projects. It is common that analysts and associates will get together for drinks / dinner / breaks, etc. Erin Albrecht (GPM Chicago) University: Washington University in St. Louis Major: English E-mail: firstname.lastname@example.org Industrials: Thus far, my experience as a first-year Analyst in the Chicago branch office has been overwhelmingly positive. The Chicago office is much smaller than the New York office, which allows for exposure to a variety of different initiatives and integration into a close-knit work community. The size contributes to a more relaxed working environment and constant interaction with colleagues of all corporate levels. Currently, GPM Chicago has three analysts and one associate who, in addition to focusing on credit analysis, work very closely with the GRB bankers in assuming various marketing activities and attending client meetings. Industries covered by Chicago analysts include Autos and Industrials, GenCorp, and Branded Consumer names. Because each industry is headquartered in New York, industry meetings are usually attended via conference call dial-in. Analysts are responsible for remaining in close communication with New York, although the lack of personal interaction can sometimes be a drawback. Since I was an English major in college, I found the Analyst training program to be relatively difficult. However, since I’ve started working I’ve realized how much I actually learned, and how much more interesting the fundamental concepts are when applied to particular company and industry analysis. The level of responsibility given to Analysts can be overwhelming at first, but every task provides a new challenge, opportunity, and learning experience. Leanne Rankowitz (GPM Houston) University: Rice University Major(s): Economics and Biochemistry E-mail: email@example.com Power: Energy is like any other GPM group-CA Memos, Annual Reviews, etc. However, the accounting is not like other industries and there is a certain degree of regulation to the industry, which also makes the analysis different. For the past three weeks, instead of analysing credit, I have been working on our Annual Industry Review. For this project, we looked at our whole portfolio of names and broke it into sectors, saw where our exposure was, how it changed, and which names drove the performance of the portfolio. Svetlana Shlafer (GPM San Francisco) University: University of California at Berkeley Major: Political Economies of Industrial Societies E-mail: firstname.lastname@example.org Technology, Media & Communications (TMC): My experience is unique since I am in the San Francisco office where we cover mostly Technology and Branded Health and Consumer names. Our office is very small so I got to know everyone fairly quickly. Much of what I have done so far has been maintenance such as Annual and Quarterly reviews in which we review the company's performance and our relationship with the Company over the period specified. I got to work on one deal already and that was a very exciting transaction. My role was to build the model and help in writing a Credit Approval for the transaction. The most interesting part of being on that deal was going to a client meeting and participating in many conference calls internally, as well as with the client and other banks. There is little travel in my position as most of our companies are local. The hours are very reasonable and there is absolutely no face time. There is quite a bit of flexibility in terms of when I come in and leave, which I believe to be unique to the satellite offices. Coming into this job with having no finance or accounting background, I credit the incredible training program for preparing me for this position. The workload was very challenging, but the overall experience was very rewarding. I got to meet incredibly talented peers with whom I still stay in frequent contact.
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