Archive for Meredith Mazzilli

Inside Goldman’s Marcus: key tech exits, new ‘audio only’ Fridays, and big plans for engineer hires

Hello readers,

Happy Saturday, and welcome to Insider Finance. Here's a rundown of the must-know stories from the past week:

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Burnout, blown deadlines, and a tech-talent exodus: How Goldman Sachs' Marcus is struggling to live up to its lofty consumer-banking ambitions

marcus goldman sachs burnout 2x1

Employees of Goldman Sachs' consumer business are quitting in large numbers, sources say. Goldman engineers and product managers are suffering from burnout and top-down management.

Marcus instituted "audio only" meetings on evenings and Fridays and is hiring more engineers to offset the crunch. Read more here.


SoFi wants to democratize IPOs by getting into the underwriting game. Here's how that could work out.

Anthony Noto SoFi

SoFi has said it is looking to compete against the largest investment banks by underwriting IPOs of certain companies itself, in addition to participating in IPOs like other retail brokerages. Here's how that could work and what the big challenges are.


The cofounder of Greenwood, a digital bank geared toward Black and Latinx users, details the fintech's $40 million Series A and how it's grown a waitlist 550,000 strong

Ryan Glover
Ryan Glover, cofounder of Greenwood

Greenwood is a banking app designed for Black and Latinx communities. In late March, the startup announced a $40 million Series A round. Cofounder Ryan Glover and Truist Ventures head Vanessa Vreeland detail how the deal came together.


Lone Pine, Candlestick, and Holocene among the big-name hedge funds hit hard in March

data screen hedge fund alt

March was a rocky month, partially thanks to the implosion of Bill Hwang's family office Archegos. Big-name managers stumbled, including long-running Tiger Cub Lone Pine. Here's a rundown.


Wall Street firms are trying to outdo each other with pay and perks

money sheet
A sheet of rare and sought after star notes is seen after the phase of production where the new 100 USD bills are applied with a serial number, a US Federal Reserve seal, are cut and stacked at the US Bureau of Engraving and Printing's Western Currency Facility October 11, 2013 in Fort Worth, Texas.
Across Wall Street, firms are competing with one another to retain junior talent. The push to incentivize young workers to stay comes after a grueling year of working from home on rapid-fire deals.

Here's a look at the latest moves:


Wall Street return-to-office updates

remote working
Many companies are now hiring fully remote positions.

Must-know Wall Street hires and exits


Other stories readers loved this week

burlington vermont houses
Burlington, Vermont.
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JPMorgan makes Silicon Valley hires – Wall Street burnout spills into Big Law – Return to office updates

Hello, readers!

Happy Saturday, and welcome to Insider Finance. Here's a rundown of the must-know stories from the past week:

If this email was forwarded to you, sign up here to get your daily dose of the stories dominating banking, business, and big deals.


How Archegos pushed the limit on risky trades and sent a $35 billion shockwave through Wall Street

Stock Market Bubble

"How could this firm take such huge economic exposures into Viacom and other companies without having to make any disclosures? Because of swaps," Paul Cellupica, former general counsel for the SEC's investment management division, told Insider. "It will raise questions." Read more here.


The SPAC M&A frenzy has finally reached its limits and a huge funding logjam is starting to form

SPAC popularity in real esate tech world 2x1

A key piece of SPAC transactions is drying up. "We are seeing, on the PIPE front, exhaustion and being bombarded with deals and pressure to make decisions quickly," said David Goldschmidt, a Skadden partner who specializes in capital markets work. Read more here.


JPMorgan poached 5 people from Silicon Valley Bank and Bank of America as it builds out teams focused on VCs and 'disruptive' commerce

jamie dimon jpmorgan

JPMorgan just hired four people from Silicon Valley Bank and one from Bank of America as the firm looks to do more business with startups and VCs. Read more here.


Big Law associates are burned out after a year of rapid-fire deals and intense hours. Special $60,000-plus bonuses may not be enough to keep them.

working from home

From M&A deals to IPOs to bankruptcy proceedings, Big Law associates are busier than ever. And some firms are paying special spring-and-fall bonuses. Here's what associates and recruiters are saying.


Wall Street return to office updates

200 West Street the Goldman Sachs building in New York
People enter and exit 200 West Street the Goldman Sachs building in New York

Other stories readers love this week

  • Meet 13 women who left Big Law to launch their own legal tech startups
  • Insatiable demand for risky debt has allowed Blackstone to draft aggressive deals - but this 'highly offensive' tactic leaves bondholders unprotected
  • Square's Cash App is hiring for a slew of positions hinting at plans to attract more merchants and compete directly with payment networks like Mastercard and Visa
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Burnout bonuses – Who to know to launch a hedge fund – Wall Street confessions

Hello, readers.

Happy Saturday, and welcome to Insider Finance. Here's a rundown of the must-know stories from the past week:

  • Some Wall Street firms are bumping salaries and giving special bonuses to keep young talent happy
  • Former Goldman partner Sumit Rajpal is out raising money for a new fund to invest in banks and fintech
  • 29 people to know when launching a hedge fund
  • H&R Block CEO Jeff Jones has big fintech ambitions

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Wall Street is showering junior staff with special bonuses and perks as burnout mounts

wall street burnout young talent junior analyst 2x1

As complaints grow louder about work conditions across Wall Street, some firms are starting to respond with special bonuses and raises.

Read more:

  • 5 current and former analysts from firms like Goldman Sachs and Credit Suisse explain their daily schedules
  • Credit Suisse is paying analysts, associates, and VPs special $20,000 bonuses and raising salaries for all but the most senior bankers
  • Apollo is offering some associates retention bonuses of up to $200,000 to stay on until 2022

READY TO LAUNCH: 29 bankers, advisors, and lawyers to know if you're thinking about starting your own hedge fund

people to know when launching hedge fund 2x1

For those looking to hang their own shingle, Insider talked to more than a dozen industry insiders and compiled a list of bankers, advisors, consultants, and lawyers who are known for their ability to get a new manager up and running. You can see the full list here.


The former co-head of one of Goldman Sachs' most elite investing groups is making his own bets on banks and fintechs

Former Goldman Sachs partner Sumit Rajpal is starting his own investment firm. He's already identified a few investments and is raising money for the transactions. Rajpal has also poached people to join him from Goldman, angering some of his former colleagues. Read everything we know here.


H&R Block's CEO wants to expand beyond the company's tax-prep roots and take on fintechs

Jeff Jones took the helm of H&R Block in 2017 on a mission to jumpstart growth at the tax-prep giant. Part of his strategy includes expanding in financial services. Here's how the former president of Uber plans to do it.


Other Wall Street stories readers loved this week

  • The boom in sustainable investing has reached the junk-bond market
  • Revolut just officially filed for a bank charter and rolled out business accounts in the US
  • Jonathan Soros' family office is spinning out a quant fund from portfolio manager John Holloway
  • Inside JPMorgan's $30 billion push for racial equity in the economy - and within its own walls
  • Wells Fargo's head of small business details lessons learned from the PPP rollout and the bank's digital-first approach to SMB lending going forward
  • Goldman Sachs just vowed to improve conditions for junior bankers. But a newly leaked pitch deck shows analysts were pleading for changes since WFH started.
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Hedge funds are set for giant windfalls as SPAC mania goes into overdrive

Hello, readers!

Happy Saturday, and welcome to Insider Finance. Here's a rundown of the must-know stories from the past week:

If this email was forwarded to you, sign up here to get your daily dose of the stories dominating banking, business, and big deals.


Cathie Wood made a career betting on the future

cathie wood ceo ark invest profile 2x1

Cathie Wood, the founder of ARK Invest, has amassed legions of obsessed followers. Wood has become a favorite of the Wall Street Bets crowd, and successfully kept control of her firm. Now, with assets accumulating and new funds coming out, the question is, can she sustain her success?

Insiders reveal how the ARK Invest founder won over memelord traders and boomer investors alike.


Lucid Motors speculation sends a Michael Klein-backed SPAC skyrocketing

Lucid Air.

Dozens of hedge funds and money managers have pumped millions into special-purpose acquisition companies. And shares in Churchill Capital Corp. IV have surged since chatter of a deal to buy Lucid Motors emerged in mid-January. Here are the 9 big-name investors set for a huge windfall.

More on the SPAC craze: 


Pimco's former funds board chair and ex-communications executive face accusations of sexual harassment in lawsuit

PIMCO's Newport Beach, California offices.

Three more women have joined a lawsuit against the $2.2 trillion asset manager Pimco, bringing forward new accusations of sexual harassment against two men who once held prominent positions at the firm.


Goldman Sachs has seen an exodus of leaders in recent months

Goldman Sachs org chart 2x1

David Solomon has been Goldman Sachs' CEO for more than two years after succeeding Lloyd Blankfein. And Solomon has made significant changes to the company's leadership team and a number of senior leaders have left in recent months. 

Here's our exclusive org chart mapping out the latest power structure of 135 top Goldman leaders.


Fintechs are desperate to reach Gen-Z

influencers in fintech 2x1

The COVID-19 pandemic has only accelerated a trend toward digital banking. Meanwhile, fintechs are trying new tools and marketing to reach Gen Z. 

Here's how they're using influencers like Charli D'Amelio to tap into what's soon-to-be the largest generation of US customers.


Other finance stories readers loved this week:

russsell westbrook  nba
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Big predictions for the year ahead on Wall Street

Hello readers, 

Happy New Year!

In case you missed it, check out our rundown of the Wall Street stories that defined 2020. There's plenty to catch up on, but here are just a few of my personal favorites: 

And now that we're officially on Day 2 of 2021, it's a great time to take stock of what to expect in the year ahead for everything from M&A activity and the future of the IPO roadshow to financial-advisor moves and the next hot fintech trends. You can read some of our biggest predictions below. 

If there's one takeaway, it's that there will be plenty of news, deals, and drama to keep tabs on. If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking and business.

We also have a must-see live event coming up on Jan. 5 - Sign up here for our webinar on how to make the most out of PPP.


M&A trends to watch, from a SPAC buying frenzy to a jump in cross-border deals

digital wall street virtual remote work 2 4x3

From Reed Alexander:

M&A activity came surging back in the latter half of 2020. Now, Wall Street is primed for robust dealmaking in 2021. 

A new regime in Washington could alleviate the apprehensions of some overseas buyers and spark renewed cross-border dealmaking activity, said Vito Sperduto, co-head of global M&A at RBC Capital Markets.

Cross-border transactions are likely to see a "significant uptick" once the administration of President-elect Joe Biden steps in, Sperduto said. While some international deals have happened in the past four years, "there already was a slowdown in cross-border transactions pre-pandemic," he said, "and it's just gotten worse."

Read our full list of 12 M&A predictions here.


Hedge funds to watch: Big names, new launches, and under-the-radar managers

Daniel Sundheim

From Bradley Saacks:

Hedge funds, on average, had a good year - the most recent Preqin data shows hedge funds are up more than 13% for the year after a strong November.

But performance wasn't equal across all strategy types, with concentrated equity managers - especially those with big private-market bets- leading the way while well-known quants struggled. And a lot of those trends are expected to carry over through the new year. 

Here are the 12 hedge funds to have on your radar in 2021.


Embedded finance, finfluencers, and a 'great rebundling'

Charli Damelio and Dixie Damelio speak during Graduate Together

From Shannen Balogh:

Insider asked four fintech investors what they're looking out for in 2021. All mentioned embedded finance as a major trend that's likely to continue as fintechs, and those in other industries, look to expand the types of services they offer customers.

"I think we're in a great rebundling," Ashley Paston, an investor at Bain Capital Ventures, told Insider. "If you look in any fintech, they have expanded outside of their initial product to create more value for their end customer."

Investors also see a rise of 'finfluencers' to help reach younger customers, especially after Step, a digital bank for teens, launched in partnership with TikTok star Charli D'Amelio. Since its rollout in October, the fintech has over 500,000 sign-ups and raised a $50 million Series B.

Read our full rundown of the next hot fintech trends here.


What's next for consumer banking

FILE PHOTO: A woman passes by a Chase bank in Times Square in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid

From Carter Johnson:

The past 12 months accelerated trends like mobile banking and digitization that have long been building in consumer banking. Both were part of a broader shift away from in-person branch visits as customers shunned human contact during the pandemic. 

It's no surprise, then, that as 2020 turns into 2021, predictions for what banks will prioritize revolve around further developing technological capabilities and online customer experience. 

Digitization and cloud technology, as well as the broader consumer credit environment and cost-cutting measures, were top of mind when bank execs discussed their goals for the year ahead.

Here's what's in store for 5 big banks in 2021, from leadership changes to ambitious tech pushes.


Fintech investors are excited for another big year after 2020 blew away their expectations

Jay Ganatra
Jay Ganatra, director of PayPal Ventures

From Shannen Balogh:

Many fintechs saw massive growth and adoption in 2020. There's also been no shortage of funding. Private funding has surged with a record number of mega-rounds - $100 million and above - this year, according to a recent CBInsights report. And fintechs like Affirm and Marqeta are gearing up for IPOs.

Investors don't see things cooling down any time soon.

"We're very excited for some of our more mature companies for the exit environment that they'll be seeing," said Jay Ganatra, partner at PayPal Ventures, whose portfolio companies include personal finance app Acorns and earned wage access startup Even.

Here's why fintech investors are so optimistic about opportunities in 2021, from M&A and public listings to competitive private funding rounds.


Tech will continue transforming the legal industry at lightning speed

legal tech lady justice code 2x1

From Yoonji Han: 

2020 was a big year for legal tech. As law firms and businesses across industries shifted to remote work, legal tech companies stepped in to offer digital solutions to help streamline the transition, from client relationship management to contract analysis.

Shrinking budgets and increasing client demands for efficiency further spurred lawyers' adoption of technology.

"It's an exciting time for the legal profession," said Jack Rives, executive director of the American Bar Association. "Attorneys are embracing and growing more comfortable with technology."

Insider spoke with six legal tech experts on the biggest transformations of 2020, and their predictions for the year ahead.

Here are the 5 big trends to watch.


Top headhunters expect another busy year for financial-advisor moves

rise in financial advisor hiring 2x1

From Rebecca Ungarino:

Not since the last financial crisis has Jeff Feldman, a Chicago-based recruiter and consultant for financial advisors, seen such a frenetic year of activity.

2020 has been his second-busiest on record by volume, bested only by 2009. And he doesn't see that slowing down. Today, Feldman's roster of clients includes wealth managers First Republic, LPL Financial, RBC Capital Management, and Rockefeller Capital Management

"I think you're going to see a lot of movement in the first half" of next year, Feldman said. "Because of the past six months, advisors have taken this time to educate themselves on new business models - and the competition."

You can read more about what's stoking the frenzy here. 


Goldman Sachs tech bankers predict the IPO roadshow will never be the same

digital wall street virtual remote work 3 2x1

From Reed Alexander:

One big change from 2020 that's likely here to stay is the efficiency that has been introduced in the IPO roadshow process, according to Jane Dunlevie, co-head of Goldman Sachs' global internet investment banking.

Traditionally, bankers hit the road leading up to an IPO to court investors and generate buzz. But the pandemic forced bankers to find creative virtual solutions for engaging investors without meeting them face-to-face.

"It's been highly productive," Dunlevie said. "We're getting roadshows done in fewer days, for the most part, so we can cut off one or two or even three days of meetings, and these IPOs are getting done I think incredibly successfully."

Aspects of that will likely continue.

"Our expectation is to try and take the best of both worlds, if and as the world reopens," she said. That might mean management teams hit up one or two large cities, but "we can probably take many of these efficiencies into processes going forward."

Read more predictions for IPOs in 2021.


Top news from the past week:

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IPO frenzy goes into overdrive – Inside Coatue’s short-lived quant fund – Blackstone TV

Happy Saturday!

It was a wild week for IPOs. Now, one company is taking a time out. Roblox is delaying its initial public offering until next year after the video game maker decided it would be too difficult to price its shares, the Wall Street Journal reported on Friday night. 

We took a look at what's been driving the IPO rush and enormous pops in early days of trading for big names like Airbnb and DoorDash. From Alex Morrell: 

Not since the days of Y2K, GeoCities, and eToys.com have initial public offerings garnered such unbridled enthusiasm from investors.

When DoorDash and Airbnb went public this week, their stock prices shot up on the first day of trading, soaring 86% and 113%, respectively. And the average IPO this year has seen a 41% first-day return.

The IPO market has notched other staggering figures this year as well, with nearly 430 deals, the most since 2000, and $160 billion in deal value, an all-time high, according to data from Dealogic.

The dynamics fueling this frenzy are nuanced. But as retail traders fight over small allocations of popular, high-growth stocks and momentum chasers follow in their wake, market valuations are inflating and some experts are throwing around the "bubble" word again.

You can read the full story here: 

Why the IPO market is exploding in a frenzy that rivals 1999 euphoria

Keep reading for a deep dive on the rapid rise and fall of Coatue's much-hyped quant fund; a look at how peak-pandemic bets on Airbnb are paying off; and to learn why Steve Schwarzman launched Blackstone TV - and doesn't see it getting cancelled any time soon. 

If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.


Billionaire Blackstone founder Steve Schwarzman started 'Blackstone TV' to help connect with employees during the pandemic 

stephen schwarzman blackstone
Blackstone cofounder and CEO Stephen Schwarzman.

From Bradley Saacks: 

Steve Schwarzman, the billionaire founder and CEO of private-equity giant Blackstone, revealed his way of increasing transparency at the firm during the pandemic.

He launched what he dubbed "Blackstone TV" - a weekly update from Schwarzman and his management team that every Blackstone employee is invited to watch. He plans to continue it, even when the pandemic has passed and employees have returned to the office.

"We are not going to get cancelled," he said.  

You can read the full story here.


Inside the rapid rise and fall of Coatue's quant fund

caotue management downfall 2x1

From Alex Morrell and Bradley Saacks:

Coatue Management, a secretive hedge fund run by the billionaire Philippe Laffont, has had a wave of departures from its vaunted data-science team.

The team, run by a young partner named Alex Izydorczyk, had its internal quant fund shut down this summer.

Business Insider spoke with more than 20 sources - including 10 ex-employees as well as investors, vendors, and hedge-fund recruiters with firsthand knowledge of the firm - about the rise and demise of Coatue's quant fund.

Here's how a 23-year-old Wharton wunderkind seized power, alienated employees, and blew a $350 million opportunity.


What's next for Betterment now that its founder is stepping away from running the robo-advisor pioneer

Betterment Jon Stein

From Rebecca Ungarino and Dan DeFrancesco:

Betterment's new CEO is replacing founder Jon Stein at a super-competitive moment for the robo-advisory industry.  Sarah Kirshbaum Levy, a former ViacomCBS executive, will be tasked with growing Betterment's brand and drawing in new customers from legacy wealth managers that dwarf it in size.

While candidates for Stein's role largely felt confident in the brand, some had concerns around the general business model of robo-advisors, a source familiar with the process said. 

One analyst we spoke with said he sees Betterment as a possible acquisition target rather than headed for an initial public offering, while Levy told the Wall Street Journal that an IPO was in its future.

You can read the full story here. 


Stash's new chief creative officer wants to build a lifestyle brand

Stash Chief Creative Officer Chidi Achara
Stash Chief Creative Officer Chidi Achara

From Carter Johnson: 

The world of fashion, in many ways, is about standing out. So it's fitting that Chidi Achara, who has worked with brands like Cole Haan, Levi's, and Hugo Boss, will be focused on doing just that for fintech Stash.

Achara has big plans for the startup he joined in September as its first chief creative officer. He's tasked with engineering and leading a rebranding effort aimed at helping Stash stand out from a crowded field of rivals.

Launched in 2015, Stash is a finance app that offers retirement, bank, investment and custodial accounts for a monthly subscription cost. The New-York based fintech raised $112 million in Series F funding in April, and has enjoyed considerable growth throughout the pandemic.

Here's how he made the jump from fashion to fintech.


Silver Lake made a bold bet on a struggling Airbnb at the peak of the pandemic

airbnb ipo nasdaq
The Airbnb logo is displayed on the Nasdaq digital billboard in Times Square in New York on December 10, 2020. - Home-sharing giant Airbnb was set for its Wall Street debut Thursday with a whopping $47 billion valuation amid a feverish rush for new shares in companies adapting to lifestyle changes imposed by the coronavirus pandemic. (Photo by Kena Betancur / AFP) (Photo by KENA BETANCUR/AFP via Getty Images)

From Dakin Campbell:

In April, just weeks after the raging coronavirus pandemic threatened to shut down the US economy, Silver Lake Partners and Sixth Street Partners made a bold bet. 

The two private-investment firms together lent $1 billion to Airbnb, the home-sharing company that was then watching its revenue plunge as people around the world stopped traveling. The loan came with a lofty coupon of about 10% and an equity kicker in the form of warrants that converted into one share apiece at less than $30. 

The following month, Silver Lake bought a slug of common shares off of Belinda Johnson, the former chief operating officer of Airbnb who now sits on its board, for more than $27 million.

Here's how those wagers on the future of travel are paying off in a big way.


Careers

  • Consulting firms with strong turnaround practices are hiring like crazy to meet demand. Here's how to land a job at FTI, according to its head of recruiting.
  • The typical cycle is changing for private-equity recruiting. Here are the new trends top hiring execs from firms like Apollo and Carlyle are seeing.

Asset management

  • Lack of travel has BlackRock rethinking its budget. Here's what the world's biggest asset manager is putting that money toward.
  • Airbnb's stock skyrocketed in its first day of trading. Here's how much massive money managers like Fidelity and Principal are up from their original bets.

Investment banking

  • A Goldman Sachs banker who leads a team that helped clients like Delta and Norwegian Cruise Line raise $120 billion in debt to weather the pandemic shares his 2021 outlook for the travel industry

Consumer banking

Private equity

  • Inside a sweetheart deal for SPAC pioneers Chinh Chu and Bill Foley. How the ultra wealthy dealmakers made millions in what some experts are calling a 'kickback' from Blackstone.

Legal and accounting tech

  • Here's the 13-page pitch deck that Contractbook, which wants to take on legal tech giants like DocuSign, just used to raise $9.4 million from investors like Bessemer Ventures
  • This startup is looking to disrupt accounting with AI and machine learning. Take a look at the 12-page pitch deck that helped Vic.ai nab $11.2 million.

Fintech

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Inside the biggest deal of 2020 – Year-end IPO frenzy – How to get hired in private equity

 

Happy Saturday!

We're just a few days in, but December is shaping up to be a busy one.

This week, S&P Global announced it plans to buy IHS Markit in a $44 billion all-stock deal. And Macquarie said it's set to buy Waddell & Reed for $1.7 billion, and plans to sell Waddell's wealth-management business to LPL Financial for some $300 million once that deal closes.

Plus, Wall Street has also been gearing up for a year-end IPO rush with big names including DoorDash and Airbnb slated for public debuts in the coming week. 

Keep reading for a look inside the S&P Global-IHS Markit deal, a rundown of what analysts say are the next asset-manager acquisition targets, and a roundup of how Wall Street comp pools are looking after a year of blowout trading revenues. 

If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.


How to get hired in private equity

bi digital live event 9 private equity recruiting 2x1

This week, Business Insider's Wall Street reporter Reed Alexander spoke with Matt Breitfelder, the global head of human capital at Apollo Global Management; Sara Diniz, vice president in human resources at Bain Capital; James Cherubim, head of talent acquisition at The Carlyle Group; and Anthony Keizner, co-managing partner at Odyssey Search Partners.

Among some of the topics that the four experts addressed:

    • What it's like to go through the interview process at their firm.
    • What kinds of modeling exams to expect and the quantitative skills you'll need to demonstrate.
    • How to stand out as someone who could become a future star PE dealmaker and investor.

WATCH NOW: 4 private-equity recruiting execs from top firms like the Carlyle Group, Apollo, and Bain Capital break down how to land a job in the ultra competitive PE world


Inside S&P Global's $44 billion deal for IHS Markit

Douglas Peterson, S&P Global CEO
Douglas Peterson, S&P Global CEO

From Reed Alexander and Dan DeFrancesco: 

Virtual dealmaking has become de rigueur in 2020, but when $44 billion is on the line, video calls can't always replace in-person meetings.

When S&P Global and IHS Markit were closing in on getting a deal over the line, their respective execs agreed that a private, in-person meeting would help both firms' top brass foster the trust and goodwill to push the transaction forward,  two sources told Business Insider.

S&P Global's $44 billion all-stock deal to buy IHS Markit, the largest acquisition of 2020, was given a push when the firms' CEOs - S&P's Douglas Peterson, and IHS Markit's Lance Uggla, accompanied by their respective deal-teams - met face-to-face in a rented boardroom in Connecticut, according to one source familiar with the situation. The meeting, which took place this fall, included precautionary measures from both parties in light of the coronavirus pandemic, both sources said.

While the magnitude of the deal certainly complicates things, the fact it was an all-stock transaction makes it even more tricky. Instead of simply handing over cash, shareholders on both sides of the deal are tied to each other after the fact because of the use of company stock as currency.  

You can read more details on how the mega-deal came together here. 


$30 billion Lone Pine - the Tiger Cub with big stakes in Shopify, Facebook, and Microsoft - is reaping huge gains in 2020

Mala Gaonkar
Lone Pine managing director Mala Gaonkar

From Bradley Saacks:

Lone Pine - the $30 billion Tiger Cub headquartered in Greenwich, Connecticut - has soared in 2020.

The equity manager has returned more than 23% in its flagship long-short fund after gaining roughly 1.6% last month, sources say. Its long-only fund though has been the real star of its offerings - the fund is up more than 38% for the year after returning nearly 11% in November.  

The discreet manager - founded by Stephen Mandel Jr. and now run by the team of Mala Gaonkar, Kelly Granat, and David Craver - has fueled its run this year with the success of its biggest position, according to the firm's most recent regulatory filing: Canadian e-commerce platform Shopify.

As of the end of September, the retailer made up more than 7% of Lone Pine's portfolio, filings show, and Shopify has continued to skyrocket in price; since the start of the year, the company's stock has more than doubled. The firm also boasts large stakes in Facebook and Microsoft, both of which have risen at least 35% this year.

You can read the full story here. 


Wall Street bonus season is looking up 

wall street bonuses

From Dakin Campbell and Reed Alexander:

Annual total compensation for Wall Street's fixed-income, currencies, and commodities groups are expected to grow for the first time in four years, a dramatic reversal for a class of Wall Street traders who have had several lean years, according to data in a recent survey.

FICC groups may see total compensation, including base salary and bonus, increase by more than 9% compared with 2019, according to a new survey conducted by Options Group, a recruiting and consulting firm for the financial-services industry. That bump would be the first year-over-year increase of the FICC bonus pools since 2016, according to the survey.

See more Wall Street compensation expectations here. 


Credit Suisse names 4 firms as likely deal targets after a fresh wave of asset management M&A - and pinpoints possible buyers

archer woman

From Rebecca Ungarino: 

On the heels of yet another major investment management combination, a new report sheds light on where analysts think the next deal for wealth and asset managers could strike. 

"Asset manager M&A wave will continue with a variety of potential transactions," analysts at Credit Suisse led by Craig Siegenthaler wrote to clients on Thursday. 

The evening before, Australia-based Macquarie Group said it would acquire investment manager Waddell & Reed.

Macquarie is set to buy the Overland Park, Kansas-based firm for $1.7 billion, or $2.3 billion Australian dollars, and is set to sell Waddell's wealth management business to major independent US broker-dealer LPL Financial for some $300 million once that deal closes.

The plans to acquire Waddell, the parent company of Ivy Investments, which Business Insider previously reported could be sold off, has analysts wondering which firm could be next. 

See the full list here. 


David Boies just outlined a leadership shuffle at his elite litigation firm after a top lawyer overseeing a big restructuring jumped ship

FILE PHOTO: Lawyer David Boies speaks to reporters outside the courthouse after a bail hearing in U.S. financier Jeffrey Epstein's sex trafficking case in New York City, U.S. July 15, 2019.    REUTERS/Lucas Jackson/File Photo
FILE PHOTO: Lawyer David Boies speaks to reporters outside the courthouse after a bail hearing in U.S. financier Jeffrey Epstein's sex trafficking case in New York City

From Casey Sullivan and Jack Newsham:

Once in charge of overseeing a firm-wide restructuring and re-imagining of Boies Schiller following a series of high-profile exits, attorney Nicholas Gravante has decided to exit himself and is joining the law firm of Cadwalader Wickersham & Taft.

The news marks the latest sign of troubles at the firm founded by the prominent trial lawyer, David Boies.

Boies Schiller staffed 350 lawyers at its peak and has experienced dozens of partner departures this year. Today the firm lists 207 attorneys on its website and it has recently sought to sublet part or all of its glamorous New York City office.

Many of the firm's exits have stemmed from internal friction over the divvying of compensation, as well as transparency into finances generally, but attorneys have also wrestled with public criticisms of Boies following his representations of Harvey Weinstein and Elizabeth Holmes.

Gravante was one of the two leaders, alongside Natasha Harrison, tasked with revamping pay for both partners and associates, and setting the strategic vision of the firm. His exit was met with surprise by lawyers who have left the firm, who pondered what the future now held for the 23-year-old litigation powerhouse.

You can read the full story here. 


Meet 2020's rising stars of real estate, the young visionaries making waves at big-name firms like CBRE and Compass and industry-shaking startups

2x1

The pandemic has upended the real-estate industry, forcing offices and shops to reinvent themselves and causing millions of Americans to relocate or reconsider their home bases for work, financial, or personal reasons.

Against this backdrop, we're spotlighting professionals who are thriving, seizing opportunities despite, or because of, COVID-19's effects on commercial and residential real estate in the US.

You can see the full list here. 


Legal

Hedge funds

IPOs and deals

  • DoorDash just refiled its IPO paperwork, updating a key chart on customer retention that had puzzled experts
  • Deloitte just snapped up a software firm as it looks to stay ahead of its Big 4 rivals on cloud computing consulting
  • Legal software company Exterro just bought a forensics data firm in a deal that could massively speed up the time it takes for lawyers to decide to act on a case

Fintech

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Election whale trade — Bank of America equities shakeup — Charles Schwab layoffs

Good morning!

Investors have been spooked all week. Amid another uptick in coronavirus cases and stalled efforts at economic stimulus, US stock indexes notched their biggest weekly drop since March.

But as Alex Morrell reported yesterday, monster derivatives trades executed as stocks tanked could see a big payoff depending on how markets react to US election results. 

"They're as specific as you can get for a definitive election trade," Henry Schwartz, head of product intelligence at Cboe Global Markets, told Business Insider

You can read the full story here:

Traders are buzzing about a mysterious market whale that's placing massive bets on stocks skyrocketing post-election


There was also plenty of fresh news on people moves in Bank of America's equity-trading division this week. Here's a recap:

  • Fab Gallo, Wall Street's longest-tenured equities chief, is leaving months after having his power checked
  • Bank of America named a former fixed-income executive to fill one of the most senior positions in its stock-trading business

More below on Charles Schwab layoffs and branch consolidation; WeWork's rent demands; a new twist on paychecks that's being piloted by payroll giant ADP; and a look at Kristin Lemkau's big plans for JPMorgan's wealth-management business. 

If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.


Leaked memo sheds more light on 'difficult' day as Charles Schwab slashes 1,000 jobs

Charles Schwab CEO Walt Bettinger, left
Charles Schwab CEO Walt Bettinger, left

Charles Schwab told staff it would cut 3% of its combined workforce with TD Ameritrade. And Schwab has "moved aggressively" to start streamlining branch networks now that its tie-up with TD Ameritrade is complete.

From Rebecca Ungarino, here's a look at a memo that circulated on Monday for one team. And here's a map showing the existing branch footprint for Schwab and TD-Ameritrade. 


How JPMorgan's Kristin Lemkau is planning to turbocharge a $500 billion wealth business

MASPETH, NY - NOVEMBER 17: Shivani Siroya, Kristin Lemkau and Stephanie Cohen speak onstage at Girlboss Rally NYC 2018 at Knockdown Center on November 17, 2018 in Maspeth, New York. (Photo by JP Yim/Getty Images for Girlboss Rally NYC 2018)
Kristin Lemkau, center, the chief executive of JPMorgan's US wealth management business.

JPMorgan's vision for building out a bigger, better wealth-management business is in Kristin Lemkau's hands. 

In her first press interview as chief executive of what has been renamed JPMorgan Wealth Management, Lemkau shared new details about the strategy for growing her division.


WeWork is demanding overdue rent from hundreds of small businesses

Sandeep Mathrani
Sandeep Mathrani starts at WeWork on February 18

WeWork has taken a more aggressive stance toward nonpaying members than at the start of the pandemic, Alex Nicoll, Paige Leskin, Dan Geiger, and Meghan Morris reported this week. 

Since WeWork sells memberships and not leases, the company can skirt local eviction moratoriums, like New York state's measure halting COVID-19-related commercial evictions until Jan. 1.  

You can read all the details here. 


Payroll giant ADP is getting in on the paycheck-on-demand frenzy

ADP employees

ADP, one of the world's largest payroll providers, is piloting an earned wage access option. Belinda Reany, who heads up ADP's new products and innovation, says the pilot will help the company determine the best version of the now-prolific on-demand pay feature.

"It's very clear that employees are looking for more flexibility compared to what I call the traditional pay cycle," Reany told Business Insider's Shannen Balogh.


The exam software company law grads say botched the online October bar is raking in $2 million in fees 

man working on computer

ExamSoft, the software company used by states to run online versions of the bar exam, will be paid upwards of $2 million in test-taking fees, an analysis by Business Insider's Yoonji Han and Jack Newsham found. 

Here's the full rundown


Pitch decks

  • See the 13-page pitch deck that DriveWealth, a fintech that powers trading and investing apps, used to nab $57 million

Deals

  • Franklin, Invesco, Janus, and other money managers are prepping for the next wave of  M&A — keeping balance sheets clean and options open

Real estate

  • Flex-workspace firm Industrious is eyeing a big expansion in Asia and just inked its first deal outside the US
  • Knotel just slashed headcount again, with the flex-space provider's CEO telling staff he expected more of a bounceback in office demand by now
  • BlackRock's former real estate head is joining a crowdfunding startup's investment committee with hopes to help smaller investors access private bets
  • ByteDance quietly leased 'massive' US data centers in 2020, a sign it may have planned to shift TikTok operations to the US

Billable hours

  • Government-focused consulting firm Booz Allen doubles acquisition war chest as it readies for possible deals
  • Ivanka Trump and Jared Kushner are threatening to sue an anti-Trump PAC that put up scathing billboard of them. Meet the litigators behind the spat
  • The majority of law firms and in-house legal departments may not extend bonuses to employees this year. A new survey reveals how they're rethinking hiring and pay.
  • An inside look at how Big Law firm Perkins Coie built up a diverse attorney base, winning major clients like Microsoft and Intel
  • Mega law firm Dentons has poached another FTI crisis communications pro as it looks to create a one-stop shop for clients

Alt data

  • How one alt-data company that rates CEO performance aims to be the S&P or Moody's of tracking management teams — and expects a surge of interest from data-starved ESG investors
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Morgan Stanley’s WhatsApp woes – How to get hired at Blackstone — Private-equity comp, revealed

Happy Saturday!

It was a busy week for Wall Street news, with fines, exits, pay cuts, and more. Here's what you need to know: 

  • 2 top Morgan Stanley commodities execs have left after the bank discovered the group was improperly using WhatsApp to communicate. A source familiar with the matter told Business Insider the two had displayed a "failure to supervise use of the communications within the commodities business."
  • Goldman Sachs is paying billions in fines over the 1MDB scandal and cutting exec pay. Here's what's been going on inside the bank.
  • JPMorgan is considering hiring as many as 4,000 financial advisors in the next five to six years, wealth boss Kristin Lemkau told Business Insider. The firm has already hired large teams of experienced FAs from rivals including Merrill Lynch and UBS in recent months.
  • Wells Fargo is exploring a sale of its asset management business, Reuters first reported. 

How to ace an interview at Blackstone

Reed Alexander and Casey Sullivan chatted with Blackstone President and COO Jon Gray, industry headhunters, and Blackstone's global head of human resources to learn what it takes to stand out and get hired at the firm. Here are some of the highlights: 

  • There were 19,000 applications for the firm's 2020 first-year analyst class, and just 94 were hired, according to data Blackstone shared.
  • "At a place like this, we have relatively few people. And we really need people who care," Gray said.
  • "I look for too many references to 'I' versus 'we,'" Paige Ross, Blackstone's global head of HR, told Business Insider. "Most people do things as part of a team, and I want to see candidates accurately reflect that."
  • You can read the full story here: Blackstone insiders reveal how to land a job at the ultra-competitive private-equity giant

If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.


Inside the alumni network of billionaire Israel Englander

millennium graphic family tree

Millennium Management, the massive hedge-fund manager founded by the billionaire Israel Englander more than 30 years ago, has a sprawling web of alumni who have gone on to found their own firms.

Bradley Saacks found that more than 70 former employees have launched their own funds across the globe. You can see the full story, database, and graphic here. 


Private equity pay, revealed

private equity pay

While raises weren't as common as they were a year ago, a majority of respondents to Heidrick & Struggles latest survey on private-equity compensation say they got a pay bump over their 2019 base salary.

Associates, even at the smallest funds, averaged nearly $200,000 in base salary and bonus last year. You can see all the data here.


Why Goldman Sachs and Blackstone are betting billions on data centers

TikTok creators influencers ring light photo video

Demand for data centers has boomed and bluechip investors like Goldman Sachs, KKR, and Blackstone have taken notice, announcing deals and unveiling plans to invest.

On Tuesday, Goldman said it would invest $500 million into data centers around the globe. And as Dan Geiger reports, users continue to take spaces — with ByteDance, the parent of TikTok, signing up for 53 megawatts in Northern Virginia and Bloomberg LP anchoring a huge data-center complex in New Jersey.

You can read our full analysis here.


The code for Goldman Sachs' internal data platform is now open for anyone to use

GettyImages 1082796180
The Goldman Sachs logo is seen displayed on an Android mobile phone

After a six-month pilot period where banks like Morgan Stanley and Deutsche Bank put it to the test, Goldman Sachs' internal data platform Legend is being released to whoever wants to use it on coding-collaboration site Github.

The bank's data chief told Bradley Saacks why the firm decided to share something seven years in the making.


How Deloitte and EY struck gold by helping states with their pandemic responses

logo 01

As Samantha Stokes reports, tax and audit firms Deloitte and EY have found business opportunities by contracting with state governments to provide technical support, staffing for unemployment claims centers, and more.

In 10 contracts with four states, the two firms have netted more than $63 million. The contracts were awarded without a bidding process.


Highlights from this week's Business Insider Global Trends Festival: 

  • Klarna CEO Sebastian Siemiatkowski on why digital retail checkouts are a huge buy now, pay later battleground: "There are a lot of buttons in the checkout. I just want to be the most popular."
  • Nasdaq CEO Adena Friedman on the future of the cloud: "Do I think in 10 years, that many of the markets around the world, including Nasdaq, could and should be able to leverage cloud to operate their actual trading activities? The answer is yes, I do."
  • FactSet CFO Helen Shan on how the data giant quantifies innovation: "Speed, reliability, ease of use. People don't necessarily think of that as innovation, but the reality is that is."
  • AlixPartners CEO Simon Freakley on what's separated winners from losers in 2020: "One doesn't have to have an online strategy to be successful, but one has to have a defining strategy."

On the move

Opendoor has hired Daniel Morillo to be the iBuyer's chief investment officer. Morillo is currently a managing director and head of equity quantitative research at $34 billion hedge fund firm Citadel. 

Opendoor last month announced plans to merge with Social Capital Hedosophia Holdings Corp II, a SPAC led by venture-capitalist Chamath Palihapitiya.


Legal

  • Litigation finance is going mainstream. Here's how a US stock listing for top player Burford Capital could transform the landscape for investors placing bets on lawsuits.
  • 7 lawyers helping Google fight landmark antitrust charges in a battle that could stretch on for years, from in-house pros to DOJ veterans
  • Baker McKenzie just teamed up with an AI platform to help clients make better business decisions. A partner lays out how the tech will help the firm 'make meaning out of the volatility.'
  • Here's the 14-page pitch deck that lays out how this contract-editing startup seeks to disrupt a $35 billion industry, which it used to nab $3.2 million from investors including DocuSign

Real estate

  • This company is building 3-D printed, small homes on existing residential properties to fight back against California's housing shortage. Look inside a unit that was move-in ready in one week.
Read the original article on Business Insider

Morgan Stanley’s bond-trading bonanza — Payments tech salaries — Fannie Mae shakeup

Happy Saturday!

Big bank earnings season was in full swing this week. From top execs laying out the rationale behind dealmaking to shedding light on their plans for the future of the physical office, here are some of this quarter's highlights:

If you're not yet a newsletter subscriber, you can sign up here to get your daily dose of the stories dominating banking, business, and big deals.

Keep reading to learn more about what engineers are getting paid at Amex, Mastercard, PayPal, Square, and Visa; a leadership shakeup at mortgage giant Fannie Mae; why big investors like Blackstone have been snapping up film and TV production space as a hot real-estate play;  and a deep dive on how per-diem lawyers have found creative ways to reinvent themselves


Mortgage giant Fannie Mae is shaking up leadership in its largest business

freddie mac fannie mae forbearance rule

US government-controlled Fannie Mae, a key player in the country's massive mortgage market, is shuffling leadership in its largest business line, according to recent internal memos seen by Business Insider. 

The changes inside Fannie Mae, which the government took over during the great financial crisis and has become a political football, come just weeks before the US presidential election.

You can read all the details on the shakeup here. 


Big money is pouring into film and TV production spaces. Here's a look at the opportunities — and risks — for this hot real-estate play.

lovecraft country hbo
"Lovecraft Country"

Brookfield Property Partners is in talks to take a stake in Blackhall Studios, a production facility with nine sound stages in Atlanta, sources told Business Insider. 

Dan Geiger and Casey Sullivan chatted with studio owners, private-equity executives and brokers to learn what's been driving a flurry of activity from big investors.


A Morgan Stanley credit desk has reaped nearly $1 billion thanks to a surge in corporate borrowing and bond-portfolio trading

James Gorman Morgan Stanley
Morgan Stanley global CEO James Gorman, at West Kowloon, Hong Kong. 13NOV17 SCMP / David Wong (Photo by David Wong/South China Morning Post via Getty Images)

As Alex Morrell reported, Morgan Stanley has had a huge year in credit trading — reaping nearly $1 billion from its investment-grade desk.

Despite ranking fourth in underwriting IG debt, the firm is a perennial top competitor when it comes to trading it.  Helping its cause: Morgan Stanley has one of Wall Street's top operations in algorithmic and bond portfolio trading, which has accelerated in 2020.

You can read all the details on the blowout performance here. 


AT&T is putting WarnerMedia's huge NYC headquarters under review 

WarnerMedia Stankey

AT&T is conducting a strategic review of WarnerMedia's 1.5 million-square-foot headquarters at 30 Hudson Yards, Dan Geiger reported this week. 

The reevaluation is expected to be complete early next year and could prompt the $200 billion telecom company to shed some of the space.

Here's a look at what this reevaluation could mean for the NYC office market. 


Here's what engineers are getting paid at Amex, Mastercard, PayPal, Square, and Visa

PayPal

For any payments player, tech is a huge part of the budget. Speed and security of a network can make or break a company like Amex or Mastercard.

And that means a large part of payments companies' headcount lies in tech. Amex, Mastercard, PayPal, Square, and Visa need to hire the best technical talent to build new ways to pay and keep the systems up and running.

Here's a roundup of what they're paying.


Per-diem attorneys could make $200,000 a year from freelance lawyer gigs. But as work has vanished, they've become Instagram cooks, motivational speakers, and reiki coaches.

Danielle Caminiti
Danielle Caminiti has pivoted from the courtroom to the kitchen.

Hundreds of lawyers in New York and beyond who made a specialty out of showing up for court appearances on behalf of other lawyers have found themselves out of work as courts have moved online. So-called per-diem lawyers could make about $125 per appearance, and for some of them, the numbers really added up.

New York courts have gradually been reopening for in-person trials and arguments, but the events that filled a per-diem's day are mostly virtual, so the lawyers who used to send them work can call in themselves.

Jack Newsham took a look at how per-diem lawyers are reinventing themselves. 


Goldman Sachs is planning to hire dozens of advisors for the firm's wealth business

Goldman Sachs NYSE
Goldman Sachs trading booth on the floor of the New York Stock Exchange in New York, on Thursday, January 6, 2011.

In Goldman Sachs' quest to move down-market, part of its newly reorganized wealth management division is preparing to expand. 

Joe Duran, head of Goldman Sachs Personal Financial Management, told Rebecca Ungarino and Dakin Campbell that the business is looking to hire dozens of financial advisors over the next year.

Here's more on hiring plans, office expansions, and why the firm is so confident in its push. 


Careers

Private equity and hedge funds

Fintech

Legal

Real estate

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