Investment banking. My time as an investment banker. In this video we are
going to discuss my time as an investment banker and my experiences. The
prior video discussed my experience at CIBC World Markets after I graduated
from Cornell University in this video I'm going to discuss my time at Petsky
Prunier or PPLLC. Petsky Prunier is an M&A boutique which is one of the most
prestigious boutiques on Wall Street it primarily deals with Direct Marketing
does a lot of M&A transaction capital raises works directly with private
equity firms to engage in strategic and financial sales to the financial
sponsors or to a strategic partner. So when I left CIBC World Markets I was
provided with an offer and an opportunity to work at Petsky Prunier.
Initially this was fantastic because coming from the industrial growth and
services group at CIBC I was able to get my work done extremely quickly then I
transferred over to the financial restructuring group. I then received my
bonus and was offered more money to join Petsky Prunier and I seized the
opportunity.. In general I believe it's very important to move around rapidly
when you are a young junior banker so when you're an analyst or an associate
it's in your best interest to move around to different banks because not
only will it provide you with an opportunity to meet a lot of people and
to meet senior bankers and as long as you do a good job for them they will
vouch for you later on but it will also save you time and also increase the
amount of money that you can make. For example you can get a promotion let's
say you're supposed to spend three years as an analyst you can leave after
two years and if you interview and they want to you bad enough they should be
able to shave off a year and make you
a first year associate as opposed to you staying in your existing job and
completing your final year as an analyst. As I said I highly recommend that you
move around relatively frequently and that's what I did when I joined Petsky
Prunier, now in this situation I worked directly with Sanjay Chadda who in my
opinion besides Carl Torrillo he's probably one of the best bankers that
I've dealt with he has extremely strong attention in detail he is the powerhouse
behind probably well at least when I was there the majority of the deal flow that
was done at Petsky Prunier him and I worked very well together in the
beginning we formed two-person deal teams and we completed I don't know if
you complete if you include Healthy Advice which is a company out in
Cincinnati probably around $500 to a $1 billion dollars worth of transactions
it was very lucrative if you include all of the M&A and then some of the raises
and things like that but in any case Sanjay Chadda and I work to work
directly together which is relatively uncommon because at that time I was
still an analyst I wasn't an associate so it showed that he helped me a very
high regard however at this time I was still promoting nightclubs I'm the
reason I started promoting nightclubs is because when I started working at CIBC
and I transferred to the financial restructuring group I was leaving for I
was working from 9:00 to 5:00 and actually during the day I wasn't really
doing much and because I still had the skill set that I developed in the
industrial growth and services group at CIBC World Markets I was able to get my
work done extremely fast and I was also a little bit cheap I didn't want to go
out and spend $20 on a drink and to get a girl into a club in Manhattan or I
didn't want to spend $30 for entry I remember telling my mom that if I ever
made any money by promoting nightclubs I would be
extremely happy well it turns out that after a little bit of hard work and by
applying the same principles that made me a good investment banker as far as
being organized and being reliable and hardworking then you can actually make a
lot of money in nightlife and because people go out and it was very common for
them to spend like $4,000 or $5,000 dollars on a table whether it was at
like Home or Guest House or Marquee or Lotus or PM Lounge they would spend
a godly amount of money on tables and I would get a
percentage on that so it wasn't uncommon for me at 22 years
old to make $5,000 a week in nightlife. Yes I had some expenses but I
probably netted around $4,000 a week and for the majority of the time all I had
to do was send out emails go to a few events and I was able to sleep with so
many girls like beautiful girls girls from like Ford Models, Wilhelmina, Elite
I mean with no effort because when you have such high relative social
status and you walk into the club and you give the bouncers a pound and they
know who you are and you just walk in and they see you and you can get anyone
in to the club without waiting on line it just elevates your social status to
such an extent that you don't even have to put in any effort I would not wear
expensive clothes I'd wear the same thing all the time and I could just walk
in people knew who I was and there would be like four girls at the table and I
would have slept with like three of them and you never would have known because I
would be friendly with them and it was just a really fun time but the problem
is getting back to my original story is that because I was making so much money
doing nightlife, Sanjay didn't like this and Petsky Prunier didn't like this
because investment bankers want you to be 100% committed they view any outside
work or outside interests as a potential threat to your loyalty so this loyalty
that you're expected to provide to the firm is not reciprocal in nature meaning
that they expect you to give 100% loyalty but if for some reason you make
a mistake or they find someone better they don't hesitate especially when you
are at a director level or even like a second or third year associate they
really would not hesitate to let you go as an analyst you have a lot more leeway
but they won't hesitate to let you go but they expect you to give 100 percent
loyalty and for me since I was making more money as a nightclub promoter than
I was making as an investment banker I really didn't give a sh*t whether I was
I just didn't really care as much as the typical people and also a lot of my
co-workers started getting very jealous so they started asking me questions like
what am I doing this weekend and I would to the Hamptons but I would just say oh
nothing I'm just staying home and reading and then if you think something
happened where someone sent one of the emails because I would I had around like
10,000 people on my email list at that time and they forwarded my nightclub
email to one of the owners and founders of the company John Prunier and then he
contacted me about this and who's like what is this what's this about
so John Prunier he's a little bit of a tight-ass Michael Petsky who's one of
the other founders he's a really really cool guy he's a good family guy he's
fine but John Prunier is a little bit of a tight-ass I had a decent relationship
with him Sanjay and I mostly work together and I had a decent relationship
with him but I never felt that Sanjay was very comfortable with me having
outside interests and this came to light later on because one of the girls that I
was saying at the time her name is Christina Celestino I met her at Suede
Lounge which was on I think 23rd Street between 7th and 8th Avenue I met
her on like a Wednesday night and she just radiated positivity I remember when
I walked up to her and I asked her for her email and then her number she was
like glowing she's a very beautiful girl and she radiated positivity like I said
earlier and I was just instantly attracted to her so we started seeing
each other at that time she was going to Fordham and I actually brought her on
the company cruise of Petsky Prunier. My relationship with Christina only
lasted about two months because she brought a friend or she couldn't get into
Marquee because she was underage and I was a jerk at the time and I said
something really rude to her and I remember what I said but I don't want to
say it because I feel like a dumbass it was really really rude what I said and I
kind of regret it but anyway so she kind of like dumped me she wasn't like
interested in me anymore but we remained cordial and she came to the company
event that we had when we sailed around Manhattan at Petsky Prunier then I
found out that a month later Sanjay got a table at a lounge called PM which is
a pretty exclusive lounge it was it's I think some corner of like Little West
12th Street it's not there anymore I know that one of the
the nightclub owners Chris Reda took it over and I forgot what he renamed it but
in anything Sanjay got a table and then
he hit on my girlfriend Christina I mean at that time she was not my girlfriend but
he like he pretty much was like she told me that he was standing around the table
with bottle service dressed in a suit and walked up to her gave her his card
and was like hi I'm Sanjay you know it's like these guys have no game what they
do is they use the prestige that they have of working as an investment bank
they've sacrificed 10 or 15 years of their life in order to become a vice
president or a managing director and then they just stand around and have no
fun they're complete tools and then they hand out their business card to girls
and actually the weird thing is he actually met her previously because I
brought her on the I brought her on the cruise the weird thing also is Sanjay at
that time was dating a girl and think that he actually has married her her
name is Allison I met her once and he's married to her but at that time now
again like I don't want to like start any problems or anything but I'm just
telling you what Christina told me but he was pretty aggressive in hitting on
her at PM Lounge while he was dating Allison who he eventually ended up
marrying. But in any case so at this time I was like 22 years old and I was making
a lot of money and Sanjay didn't like this and because bankers use fear in
order to intimidate you and when they want you to work at like 10:00 or 11:00
or midnight they tell you and insinuate that if you do not comply with their
orders and you don't make the necessary sacrifice then your bonus is going to be
negatively impacted but for me considering that I was making a lot more
money as a nightclub promoter and I was able to have a lot more access in social
status and sleep with a lot more girls so it was actually fine I really didn't
care so much about the investment banking job which in hindsight was a big
mistake. Anyway one time I remember when they flew us to San Francisco and then
John Prunier acted like they were doing us by such a like such a huge
favor because they put us up with a hotel and we went during the weekend and
you probably spent around $4,000 but the problem with that is what John didn't
realize is I actually gave up a few thousand dollars
by going to San Francisco so he wasn't doing me any favor by flying me out to
San Francisco to go to a marketing conference and then having me walk
around and give my card to everyone in the booth in order to generate business
and then when I kind of insinuated and told John that I was doing him that I
didn't want to be there and again I was also booking tables on my phone during
this time when I was on the call and not pissed off John and Sanjay and when they
spoke to me about it I was very straightforward with them and told them
that I didn't have a desire to be there it's not my job to generate substantial
revenue for the company as an analyst and I told them that I was also
sacrificing thousands of dollars by going there and there were other people
who called out I remember Colleen Filipo she called out and she was able
to not go but for some reason if I called out and I told them that I would
rather go to the nightclub that I guarantee you would have been a huge
problem because they did not like that I was promoting nightclubs so if I told
them that I was skipping the San Francisco trip in order to make an
incremental a few thousand dollars they would have viewed that as me choosing
nightlife over Investment Banking and I guarantee you they would docked me like
$10,000 or $15,000 thousand dollars on my bonus so I knew that and I decided to go
to San Francisco but at the same time I was continuing like booking tables and
sending people to the nightclub and they got really pissed about that another
thing is they in 2006 they hired a banker Matthew Kratter at this time he
was a director I think Matt Kratter graduated from University of
Pennsylvania he was a pretty smart guy but he just he was super annoying he
would start her on all the conference calls he would give a very poor
presentation and in my opinion he was just he was annoying a sh*t like he was
so freakin annoying him and this guy Jim Toohey were very annoying but Matthew
Kratter was like even worse like he would just continuously turn documents
and I just had no respect for Matthew Kratter and I spoke back to him a few
times and Sanjay told me that at one point that I was disrespectful to him
but I just didn't care because this person was so
freakin annoying and now he's actually a managing director at Petsky Prunier
but unless things have changed and it's been a while I mean at that time he was
stuttering all the time on conference calls it was almost like humorous that
this person was a director yet Sanjay would not work with him on deal
teams because Sanjay had more trust in an analyst than he did in his own
director yet the analyst was getting paid three or four times as much money
rather the director was getting paid three or four times as much money as the
analyst. So the reason I'm saying this is that investment banking is not a
meritocracy the people who win and who make the most money are not necessarily
based upon merit or how skilled they are rather it's predicated upon how much
time they've invested and how much they have sacrificed to the industry so at
that time Sanjay had substantially more confidence in me than he did in Matthew
Kratter yet Matthew Kratter since he had been working as an investment banker for
ten more years than me and he was getting paid around three or four times
as much money signed like Sanjay chose me yet Petsky Prunier was not
compensating me nearly as much as they were Mathew Kratter so I kind of didn't
really like this and that's one of the reasons why I've chosen more of the
entrepreneurial route because when you work for someone else you better love it
because even if you're more skilled and more capable than your bosses they are
going to reward the boss and give the boss more power based upon the boss'
experience and their prior experiences so it doesn't matter how capable you are
they are still going to take advantage of the new hires of the analysts and the
associates they're going to under pay the analysts and the associates and they
overpay the directors and the managing directors the reason for that is a very
small percentage of analysts and associates become directors and managing
directors. They can afford to under pay the analysts and the associates so that
they overpay the directors in the managing directors I had a big problem
with Matthew Kratter like I said and I made a big mistake in
2006 during the summer I was working late one night while I was working on
promoting things you know sending out my email adding emails to my email list and
I actually missed a flight to Boston the next day I remember we were working with
a direct marketing company they used to buy direct I forget what the name of it
was but it was near Boston and I missed the flight and that was that was on me
that was a huge mistake that was probably the biggest mistake that I made
during my entire time as an investment banker because that's pretty it's black
and white I just I stayed in the office until 2 o'clock in the morning I went
home I had to wake up at about 6:00 a.m. I was sleep-deprived and I missed the
flight and it was a really bad experience and I was on me and that
actually caused me to not get promoted so even though I made no mistakes that
entire year on the financial models Sanjay told me during their review that
they felt like they couldn't trust me a hundred percent that I wasn't fully
dedicated and that was the reason why I didn't get promoted and as a result I
told Sanjay during that meeting that I was gonna quit he then told me to give
him two or three weeks and then I can go on interviews because I was staffed on a
lot of deals and they wanted time to find a replacement so that's what I did
and I eventually found another job within about two or three weeks at
another investment bank and everything worked out well but I can tell you that
do I have regret I I'm not sure I think that in the beginning when I joined
Petsky Prunier I really loved it because it provided freedom but then they
started implementing a lot of changes so every week at 9:00 and 9:00 in the
morning we would have to everyone from the office would have to sit down and in
a conference room and go through the deal the deal sheet and provide updates
and I thought that this was a complete waste of time we would sit there from
9:00 in the morning until 10:00 a.m. every single week this was implemented
around late 2005 or early 2006 and in my opinion this is a complete 100% waste of
time so the more structures and the more regimented structures that companies put
into place the more that take away your freedom the more
sacrifices they require of you the more that the junior bankers feel as if they
are not being compensated well enough where they feel that they're being
underpaid so that the directors and the managing directors can be over
compensated I think that these situations the greater tendency that
banks have to exhibit these these type of tendencies the higher incidence there
will be of junior bankers leaving and banks really don't want junior banks to
leave because for the most part they spend three or four months to get these
junior bankers productive and profitable and then if these junior bankers leave
and they have to take a chance on someone else who might not be nearly as
good as the person that they that left. So in my opinion I'm not sure if I regret
I know that Petsky Prunier at that time was one of the most prestigious boutique
firms on Wall Street and in the country and at this moment it's probably the
same it's still probably incredibly prestigious I got along very well with
Mike with John I barely had any interactions Sanjay if I wasn't a
nightclub promoter I think that my relationship with him would have been
much better but it wasn't because I always felt that there was a lot of
hidden tension but I learned a lot and I definitely recommend that you should
work at a bulge bracket firm like a Morgan Stanley like I worked at and then
transfer over to a boutique or also to a private equity firm but I also feel that
the one of the benefits of the private equity firms or rather of the Bulge
rather than start one of the benefits of the boutiques or that you don't have to
work as hard so I could have worked if I wasn't involved in nightlife from 9:00
in the morning until around 6:30 or 7:00 at night and usually Sanjay would leave
it at 7:00 and once he left I could leave because I was very efficient in
getting my work done the other benefit is you see all the you see the entire
deal flow you see the entire deal process I was on the phone with private
equity firms I would go through the data room to make sure that there were that
there was nothing there that we had to that we had to censor I put together the
indication the interest the letter of intent I
would also get involved and be on the phone when Sanjay would negotiate the
purchase prices and set up the auction so things like that were incredibly
valuable because you would see the deal from fruition from the beginning from
inception all the way until it completed that was very very valuable the other
thing is I worked directly with private equity firms so we worked with Halyard
Capital, Seaport capital a ton of investment banks we worked with Goldman
Sachs we work with probably around five or ten private equity firm so it gives
you a lot of exposure I can say that I don't regret it because I definitely
enjoy the entrepreneurial life and I think that working on Wall Street it
requires you to make too much of a sacrifice to work there long term but
I'm happy for my experience at Petsky Prunier and I wish that they had seen
the best side of me so I wish that I didn't have to deal with Matthew Kratter
at all I also wish I didn't miss that flight
I also wish that Sanjay was a little bit less petty and didn't get involved in or
get jealous because he knew that I was a that was a nightclub promoter and
there were a few times where I saw Sanjay out one time I saw him out and then he
saw like a few girls around me and he got like kind of jealous and a few other
times I mean it was just like kind of weird but besides that I mean that's
pretty much it that that um this is probably going to be one of the last
videos that I make about my individual experiences and as an investment banker
I will make future videos about how to get an investment banking job so I'll go
through the questions that they ask you the specific answer is that you should
provide the presentation that you should give how you should dress what you
should tell them if you don't know the answer to a question additionally if you
want free training on how to sell option premium you can go to BestStockStrategy.com
and enter in your email address if you have any questions then
let me know let me just make sure that I that I went through everything so Petsky
Prunier on Wall Street. Sanjay. I was promoting
was making more money as a promoter than i was as an investment banker and that
bothered them. Sanjay. Okay. San Francisco. i talked about how i missed the flight
how i have problems with Matthew Kratter also of the last thing is I was able to
meet some really cool people when I was working at a Petsky Prunier
so I met Michel Lastoria who is now the CEO of &Pizza he is very young he's
probably only around three or four years older than me and he's probably worth
around $50 or 100 million dollars he's a very successful entrepreneur and I met a
lot of those type of people and it actually paid dividends because Michel
Lastoria actually owned a nightclub called Corio in New York City so
ironically I worked with him at Corio after I left Petsky Prunier
yeah so it was funny because I helped him sell his company
which was Innovation Ads while I was at Petsky Prunier and then once I left
Petsky Prunier he hired me as a consultant for Corio so things have a way of
circling back and you help one person do one thing where you maximize the
purchase price of their company and then they pay you on the backend by working
together at their club so you know successful people and are always going
to have multiple sources of income whether it's running companies owning
restaurants owning lounges people just enjoy that they enjoy that and I think
one of the main problems with Wall Street is that very few bankers actually
enjoy Wall Street they don't enjoy their job because it requires so much
sacrifice you have to dress up in a suit you have to always be professional but
then the way that these people are acting when no one's watching is very
different from the professional persona that they portray when everyone's
watching there were numerous times with CIBC World Markets where kids were
addicted to Adderall where there were snorting cocaine in the in the back a
lot of the managing directors were cheating on their wives they were
alcoholics and this is something that you would never see if you took
everything in face value but when you scratch behind the surface or below the
surface because these people had to sacrifice so much
and they pretty much sacrifice all of their individuality and they sacrifice
their life all their time their 20s and their 30s they have to develop negative
coping mechanisms which are very disastrous and very harmful and almost
poison to their soul and I saw this all the time in investment banking specifically
with directors and managing directors and that's one of the main reasons why I
recommend that even if you make less money initially even if you're making
$20,000 or $30,000 thousand dollars when you're 20 years old
if you find something that you actually enjoy you should invest a 100%
of your time because you don't want to get involved in something that
you don't enjoy the effects and negative effects of working at a job that you
don't enjoy our very insidious it will eat away in great away at your humanity
at your soul and you'll end up developing very negative coping
mechanisms that are going to hurt you in the future so like I said before if you
have any questions let me know I'm here to help you and I appreciate your
attention
For more infomation >> Shrimps & grits Cuban style - Duration: 9:29. 
For more infomation >> A Day In My Life | Bra Shopping For My New Boobs! - Duration: 20:33. 
For more infomation >> Life as a Westpac Agribusiness Grad - Duration: 1:41. 
For more infomation >> Life as a Westpac Group Technology Grad - Duration: 1:44. 
For more infomation >> Life as a Westpac HR Grad - Duration: 1:51. 
For more infomation >> Life as a Westpac Transformation Grad - Duration: 1:55. 
For more infomation >> Life as a St George Retail Grad - Duration: 1:45. 
Không có nhận xét nào:
Đăng nhận xét