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Tag: investment banking certification

Tips For A Student For Career In Investment Banking

Posted on by Imarticus Learning
Reading Time: 3 minutes

Want to pursue a career as an investment banker? Are you a graduate in Commerce, Business Administration, Finance, Economics etc? If you have answered with a yes, then you can pursue a career in investment banking. While most companies prefer graduates there is no need to worry even if your answer is no. Undergraduates can also undergo training and join as Analysts in IB and move up the career ladder.
The normal investment banking career ladder begins after you do your course and get a fair idea of what the IB field is about. Many of the finance graduates who do the course at Imarticus Learning have benefitted from their soft-skills training by being placed as Associates directly under their assured placement programs. The higher you go certifications and continued learning become crucial for better progression and higher bonuses and payouts. Normally it takes 2-3 years for undergraduates in an Analyst position to gain sufficient experience for the Associate’s role. Beyond this level it is all about performance, certifications, excellence in work-experiences and being an absolute people-person for the next 2-3 years, that can propel you to the higher rungs of the IB hierarchy.

Tips to Help With Your Investment Banking Career.

1. Research your IB career path:
Experience counts in this field and if you can do an internship while finishing your graduation it is a very good way to get a feel of the career. Small and large banks do offer internships and based on your performance could make a job offer.
Doing an investment banking course in the classroom mode offers you a chance to get certification and the requisite experience criteria fulfillment to try for an Associate’s post directly.
Keep a close track of recruitment offers and the hiring timeframes in the banking industry. This typically can take anywhere between 2-6 weeks and many rounds of interviews.
2. Research and learn all about the concepts and skills required:
Reading books like MarketWatch and DealBook help you keep track of the latest trends in IB. Prepare your resume and keep handy some interesting examples and trends that you can link into your answers to impress the interviewer. Develop your personality traits and soft skills like communication skills, objective quantitative tests etc to help with the interview rounds.
3. Do a relevant course:
Doing the financial and investment banking course at the reputed Imarticus Learning helps greatly. Besides your academic qualification, major subjects adding on these courses goes a long way to help you specialize in IB.
Many of the finance graduates who do the course at Imarticus Learning have benefitted from their soft-skills training by being placed as Associates directly under their assured placement programs. The higher you go certifications and continued learning become crucial for better progression and higher bonuses and payouts. Normally it takes 2-3 years for undergraduates in an Analyst position to gain sufficient experience for the Associate’s role. Beyond this level, it is all about performance, certifications, excellence in work-experiences and being an absolute people-person that can propel you to the higher rungs of the IB hierarchy.
4. Judge what the recruiter is looking for:
No one has all the right answers. Remember to pay attention to what the recruiter wants from you and answer honestly projecting a well-rounded persona with consistent planning to achieve your career goal. Showcase your internships, certifications and relevant experience to improve your chances. Focus on what the jobs taught you, what you liked and did not in them. Build up skills that you may be lacking like your language and communication skills.
5. Network:
IB is about who you know and how well you can maintain relationships. LinkedIn, Facebook, alumni networks and professional finance forums are good to advertise your efforts in.
The healthy IB payouts:
Payscale reports the investment banker salary is an average salary of 508, 855 Rs for a fresher. The salary components can vary between 177,560 to 1,545, 630 Rs while the bonuses can vary with contract negotiation from 2,517 to 524, 023 Rs depending on your skills and performance. In the US this is between 75-90k pa and an average total of 140k pa for a fresher.
Concluding notes:
The total payouts for an IB depend on performance and bonuses and are extremely well-paying. Doing the IB course helps you earn a global measurable certification which validates your skills and knowledge and is acceptable as real-life experience of the financial and investment banking experience requirements preferred by most employees.
In parting, if you wish to learn all about the investment banking career, do your course with the reputed Imarticus Learning to emerge right atop of the rushing crowds of IB career aspirants. Hurry. Admissions are limited in every batch.

Interesting Things About Investment Banking In India

Posted on by Imarticus Learning
Reading Time: 3 minutes

Among the well-known banks currently operating in India are HSBC, ABN-AMRO, BNP Paribas, Deutsche Bank, Nomura, Citi Bank, and the Mellon Bank of New York. Large financers like Goldman Sachs, JPMorgan Chase Bank, Morgan Stanley, and Barclays also operate from here. Among our very own Indian investment banking well-knowns are ICICI IB and Securities, HDFC, Avendus, Kotak Capital, Bajaj Capital, SBI IB division and Yes Bank.
Services offered:
Investment banking plays the intermediary role in assisting HNIs, Corporations and even small companies raise and manage their financial investments. They provide assistance in selling equity and debt securities like shares, stocks, debts, bonds and more. Investment banking certification covers and teaches you all about the services of an investment banking career. Namely,
• Acquisition advisory
• M and A mergers
• Security trading
• AMC
• Custodial services
• Corporate finance
• Debt restructuring
• Other services.
Why Foreign Banks Love India:
Do you know why most foreign banks operate from India? This is so, due to the availability of talent, such employees being largely English spoken, and lowers operating costs when compared to the other English speaking nations like UK, USA, Australia and such. Back-offices are also readily available in terms of LPO, KPO, transcription, and such services being readily offered by Wipro, TCS, Infosys, Syntel etc among many others.
IB markets:
Investment Banking focuses on exploring the bank’s services in the markets. Here is a brief explanation of the markets involved in an investment banking career.
Equity Markets:
The Equity Market has three categories:
Equity Fund services: Here raising capital, IPOs, financing deals are the mainstays.
Convertible Bonds: Debts that convert into a share in equity help raise company capital through the issuance of such convertible bonds.
Syndicated: This interbank transaction involves multiple-bank equity deals.
Debt Markets:
Debt investment banking markets where sales, funding and trading are involved based on the asset class, the objective of the investment and structure. The noteworthy segments are
The mutual funds: The money collected from investors is invested to make sizeable profit/loss as a partnership effort.
Equity Funds: Funds invested in company shares, equities and stocks carry a high degree of risk and provide higher returns when traded in or sold.
Debt Funds: These government bonds, company debentures, and other fixed assets are considered low risk as they provide a fixed percentage of income on maturity and when traded in.

Investment Banking Career Scope and Payouts

With data analytics and a highly dynamic and evolving technological scenario present in India and globally, European companies like Lehman Brothers, Merrill Lynch, Credit Suisse and very many large financial banks, groups and even NBFCs operate in India. This ensures the local talents find lucrative jobs and make their careers in investment banking. There is hence great demand for talented youngsters, training and investment banking courses that actually make you job-prepared. Good institutes like Imarticus Learning have mushroomed over the last decade with a global footprint. Hence the scope for job-roles in investment banking has steadily grown and is today the most popular choice of career aspirants.
Now have a look at this table, where Payscale reports an average salary of 508, 855 Rs for a fresh starter. Salary components can vary between 177,560 to 1,545, 630 Rs and have added bonuses from 2,517 to 524, 023Rs depending on your skills and performance. Thus the total pay can be much higher and very lucrative in comparison to other jobs. However, doing a course is essential and the Investment banking certification provides the measure of your skill and knowledge and has come to also be a prerequisite for interviewers.
Just remember at interviews to
• Dress neat and professional.
• Prepare for the interview and research your subjects, the company applied to, job-profile etc well.
• Practice and reinforce your learning until perfect.
Requisite investment banking skills:
To become a successful investment banker you will need to be one who has
• Good academic record and at least a graduate.
• Fluency in English communication.
• Analytical-thinking ability.
• Excellent forecasting, predictive and analytical skills.
• Problem-solving capacity.
• Subject expertise is very desirable.
• Strong skills in Excel, other financial software.
Wrap up notes:
The IB role is both financially and career-wise a rewarding prospect. Essential to the whole equation is knowledge and training at the interview, placement and on-the-job stages. Do your at Imarticus Learning to take advantage of certification, assured placements and a firm footing in the industry. Hurry and enroll.

My formula for a Successful Investment Banking Career

Posted on by Imarticus Learning
Reading Time: 2 minutes

Prasad Mekde reminisces and talks about his experience which helped him land a prestigious job at BNP Paribas and earn a confirmation of service in just a few months.
Hello. My name is Prasad Mekde. I graduated in 2015 and enrolled in the investment banking operations course at Imarticus. Shortly after I completed the course I was placed at BNP Paribas and confirmed soon thereafter.
The highlights of Imarticus’ Investment Banking Course
Batch 68 is where 30 graduates came together at Imarticus Learning to realize their dreams of being tomorrow’s successful investment bankers. Every individual’s skill set is honed at Imarticus to present and mould them in the best possible manner and this is what they helped me with. The result is the job that I landed with BNP Paribas!
I enrolled for the program based on the recommendation of a friend and the encouraging Imarticus learning reviews. In my opinion, the best part of the course was the sharing of knowledge on investment banking in a practical manner which helped me get an insider’s view into the role of an investment banker and what exactly I needed to do in this role.
The knowledge and fine tuning of perceptions related to skill sets for investment banking, understanding the role and learning to apply the technical skills I acquired were the major areas I benefitted. The regular revisions and learning reinforcement ensured I had a good foundation in Investment Banking.
The training methodology:
The training comprised of 3 holistic approaches. The book references helped me gain theoretical knowledge and certification gave me added confidence. Imarticus Learning used assignments, projects, and live simulations to help me create the essential attributes of confidence. This essentially meant practically implementing my knowledge of the basics and concepts, presenting the information based on an analysis in lucid presentations and interacting with all relevant people collaboratively.
The trainer’s and faculty members helped boost my morale and give me a clear picture of my work-day and role as an investment banker. The classroom sessions, market simulations, hands-on, and do-and-learn experiential methods helped boost and kick-start my career.
Why I recommend Imarticus to all aspirants:
Imarticus Learning’s placement services and the industry-endorsed certification helped me stand head-and-shoulders above other candidates. The training and learning sessions enhanced my communicative skills and knowledge of the latest technological tools and helped me build a well-presented resume.
If you have a yearning to follow a career in Investment Banking click here for complete information or speak to the counselors to allay any fears you might have.

My Journey from an Introvert to a Successful Investment Banking Career.

Posted on by Imarticus Learning
Reading Time: 2 minutes

Jason Lobo explains how he overcame his fears to emerge as a winner with a great IB career.
Yes, I wanted to be an investment banker but lacked confidence and was an introvert.
My name is Jason Lobo and I finished my graduation from the KES Shroff Commerce and Arts College. As the first step to an investment banking career, I equipped myself by pursuing courses in Advanced Excel and Tally. However, my greatest hurdle was that I would hesitate to speak to strangers and lacked the confidence to interview for an investment banking job. That’s the moment I decided to approach Imarticus Learning!
After speaking to the counselors at Imarticus, I found that their Investment Banking Course was ideal for me. I looked over the syllabus that the course covered and found it to be extremely comprehensive.

Investment Banking Course
I checked their website and other portals like Glassdoor and found that there were many candidates who had finished their course and had given positive Imarticus learning reviews. I personally felt that the Imarticus learning placement program was unique and offered a 100% assurance of placements.
The training course is unique, amazing and result-oriented:
The training is truly among the best. The faculty members were excellent and mold you into a person who can seamlessly fit into teams and Investment Banking positions. The certification exams, job preparation, frequent mock interviews, and invaluable interview guidance helped me face the interviewer confidently and I landed a job GlobeOp.
My transformation:
Though I took many job-interviews I found it very difficult to make a breakthrough. With the Imarticus training, it became possible for me to achieve the dream job of many aspirants. Their soft-skill development sessions were personalized for each student. My entire personality changed to becoming a confident extrovert armed with both theoretical and practical knowledge.
Their placement experts, especially Mr. Rohan, take great responsibility to ensure you get placed. Moreover, the efforts of Ms. Lourdes, Mr. Dharmesh and Mr. Mithul in providing me with the essential soft-skill training, interview knowledge and an idea of the role of an investment banker helped me groom myself and get into this industry with confidence.
Thank you Imarticus!
Post the course and successful placement at SS&C GlobeOp, I find I can speak endlessly about many subjects and even talk to strangers. I owe my new job and career to Imarticus! I have been able to conquer my fears to confidently face interviews, realize my career ambition and overcome a lack of confidence in my skills.
If you want an Investment Banking career, click here for complete information or speak to the counselors to allay any fears you might have. Hurry and enroll today. Your career hinges on your decision.

How I Aced the BNP Paribas Interviews to Kick-Start my Investment Banking Career

Posted on by Imarticus Learning
Reading Time: 2 minutes

Hello. I’m Ajith Gouda and have a Bachelor degree in Management Studies from Mumbai University. I completed the Investment Banking Certification Course 2 months ago and am presently working at BNP Paribas.
Why I opted for Imarticus Learning’s Investment Banking Course?
The Indian Express claims that Investment Banking is today’s hot-choice among careers. And, they’re right. It’s anticipated that in 2019-2020 alone around 750,000 openings are available in global financial firms and banks. The payouts, job-security, and growth in this field are amazing and second to none. Moreover, the Imarticus Learning reviews concurred and I used this amazing course to launch my IB career.
This course is truly awesome:
The innovative and unique teaching methodology helped me imbibe theoretical learning through classroom training, where instruction was coupled with experiential learning. The practical approach with regular reviews and reinforcement of learning and the many live market-sessions helped me connect the dots and understand why knowledge and the ability to practically implement that knowledge is so vital to an investment banker. They gave me the insider-view and provided me with clarity on the investment banker’s job role.
My learning summary:
Since I had no idea or insider view of the real investment banking job role, I did have my concerns about whether I would be job-ready after the course. My fears were put to rest since the course helped me with knowledge of finance institutions, market participants,  modules on basics and advanced concepts of the financial and money system, the business sides of sell and buy, market types, the regulators, regulations and risks involved, all about various kinds of shares, capital markets, financial institutions, bonds, shares, receipts, stock exchange operation, yield, complex Forex operations like credit, defaults, hedging, swaps and  all that is essentially required to operate as an investment banker.
Investment Banking Course
The actual training course highlights:
Imarticus helped me gain all this information through practical assignments, projects, and simulations and helped me create good self-projecting attributes where I used both practicality and sound knowledge. Their excellent faculty, classroom sessions, market simulations, hands-on, and do-and-learn experiential methods helped me kick-start my career. I am grateful to Imarticus for the great learning platform which was informational, easy-to-recall, used the latest technological aids and reinforced my learning through the various aids at the right time.
The last and best self-development module:
Learning is all about ongoing changes and I found that Imarticus Learning is the biggest and best platform available today for aspiring graduate students looking to make a career in investment banking.
This certification helped me raise the bar and is like a feather in my educational cap. Their learning sessions to grow your skill sets also cover enhancing your communication skills, ensuring you can handle the technologically latest software programs, building your CV, mock interviews, mock domain sessions, and invaluable interview guidance. This helped me ace my interview in just a few months. Thank you Imarticus!
Looking for a foothold in the investment banking industry? Click here and speak to a career counselor today.

Current Liquidity Crisis and M&A

Posted on by Imarticus Learning
Reading Time: 3 minutes

The financial crisis of NBFCs a major concern
For a long time, various corporations, including insurance firms, had made investments through short-term instruments in the Infrastructure Finance Company IL&FS, which has to led to a significant liquidity crunch today. Amidst this scenario, the Non-Banking Finance Companies (NBFCs) have been majorly affected by the current liquidity crisis in India. The relationship between the Government and RBI is going through a rough phase as well due to the prevailing circumstances. Adding to the tension is the ban on using Aadhaar information for microlending during December 2018.
Interference of RBI to save IL & FS from the liquidity crunch
The reports from the Ministry of Corporate Affairs (MCA) states that the total debts of IL&FS as of 2017-2018 balance sheet stands at INR 63,000 crores today. The NBFCs were expecting a ray of hope from the RBI, but to their surprise, the reserve bank imposed more rigid rules and regulations for risk management, and asset-liability structures. In the last quarter of 2018, the RBI had announced to inject INR 40,000 crore to help the soaring funds through Government securities into the system.
The problems faced by NBFCs are mostly attributed to their dependencies in short-term borrowings and long-term lending loans to builders and real estate players. Therefore RBI’s ruling enforces more disciplined liquidity management in the future is a welcoming approach. However, the point to be concerned is the unknown course of action for the NBFCs to get out of the present liquidity crisis without which implementing new measures is difficult.
The financial crunch of the NBFCs has affected the loans against the property market in the fiscal year 2019 in India. A secured loan where one party pledges a property with a lender and borrow against it is a Loan Against Property (LAP). In a report from the reporting agency, India Ratings and Research stated that the weak LAP in FY19 is mainly due to lack of strong emotions on the property market and the liquidity crunch faced by NBFCs.
An insight into global M&A
The United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report of 2019 release states that there is a substantial decline in the global FDI by 13% in 2018 which is a third consecutive decline. The slide in global FDI is  USD 1.3T in 2018 from USD 1.5T in 2017. However, India witnessed a 6% growth in FDI in 2018 to 42B. This growth is attributed to the activities in cross-border mergers and acquisitions, communication, production, and financial service sector.
The growth of e-commerce in India is expected to increase tentatively by a large extent. It is estimated that India’s e-commerce transactions to reach USD200B by 2026. Further, the trending online retail businesses coupled with telecommunication growth has leveraged the increase in cross-border M&As in India to USD 33B in 2018 from USD 23B in 2017.
The domestic M&A emerging as a life saver
A blockbuster merger was by the American multinational retail corporation, Walmart and India’s largest fashion e-commerce giant Flipkart. The telecommunication alliances and deals were worth USD 2B that collectively associates deals from Vodafone and American Tower. India’s blooming year for M&As was 2018, after which the first quarter of FY2019 has been low. The reason for this subdued effect is attributed to the gloomy global M&A market.
The quarterly report figures indicated a fall in M&A in Q1CY19 to $9.9B from $21.6b in Q1CY18. However, the domestic deals were a breather for India, the most significant being the merger between Bandhan bank and Gruh Finance, which was a $3.2B deal. Another agreement was between GMR airports, and Tata group led Consortium, which amounted to $1.2B. While Japan and Germany were favorite partners for cross-border M&A, the US remained at the top of the chart with 14 inbounds and 14 outbound deals with India. The Indian business executives are high on confidence that one-third of them are expected to undertake M&A in 2019.
To Sum Up
The backup of domestic consolidation for India and continued support of interests from FDI is considered a root cause for having a stable M&A in the future. Given the weak sentiment in the bond market, the current liquidity crisis may remain stubborn for NBFCs at the present moment.
Get more interesting about Current Liquidity Crisis and M&A, by applying for an Investment Banking Courses

The Investment Banking Course That Will Get You Hired

Posted on by Imarticus Learning
Reading Time: 2 minutes

Prateek shares his experience and the journey that led to an investment banking job at Goldman Sachs
Investment Banking is an industry that’s hard to break into, even with a master’s degree in finance. Prateek, a postgraduate in banking & finance, talks about how Imarticus Learning’s Investment Banking Training program helped him land his dream job.
What’s your background, and why did you enroll in the Investment Banking course?
My name is Prateek Dhar, and I have a bachelor’s degree in accounts and auditing from NM college. After attaining my bachelor’s degree, I went on to graduate with a master’s degree in banking and finance. After my post-graduation, I was looking for more learning and career opportunities and stumbled upon Imarticus and the Investment Banking courses. I was interested in and enquired about the course. I also looked through Imarticus Learning reviews to gauge public opinion. On visiting the center, the career counselors helped guide me on the path to an investment banking career, and I decided to enroll for the course.
Investment Banking Course
Tell us about your experience during the course.
My entire journey with Imarticus has been incredible. The course content is comprehensive, in-depth, and aligned to the requirements of the industry. The best part of the course is, without a doubt, the trainers. They have experienced professionals and have a good grip on the finance domain and on the concepts they teach. Moreover, the course isn’t restricted to just theoretical knowledge. The trainers ensure that practical learning is incorporated into every concept that you learn.
Imarticus has helped me gain a lot of knowledge, and I’m thankful for the experience.
Why would you recommend this Investment Banking course?
Well, in my opinion, the most important aspect of any course is the trainers. This is the reason I would recommend the course at Imarticus. Not only are the trainers knowledgeable and extremely skilled, but they also are approachable, helpful and are ready to assist with any queries that you may have. The classroom lectures are interactive, and this helps keep up with the learning curve.
What are your thoughts about Imarticus Learning’s placement services?
Fantastic! I was placed at Goldman Sachs through Imarticus and couldn’t have asked for more. Many of the major investment banks – BNP Paribas, Morgan Stanley, Goldman Sachs, GlobeOp and more – recruit from Imarticus and this is an excellent opportunity for freshers to make their mark in the industry. Imarticus will help you crack better opportunities in the market by helping you refine your resume along with your communication and interview skills.
While the course is a short-term journey, it has given me long-term prospects within the investment banking industry. Anyone looking for an investment banking career should come to Imarticus.
Are you looking to launch your investment banking career? Click here to inquire about the program.

Can Chartered Accountants become Investment Bankers? How?

Posted on by Imarticus Learning
Reading Time: 2 minutes

Investment banking is a challenging and exciting career opportunity that many can pursue. Grit, determination and a smart attitude are what it takes to become an investment banker.
Many chartered accountants look at pivoting their career to investment banking due to the myriad of opportunities available in the field. While chartered accountancy is challenging, investment banking opens a new world of functions and risk aspects that one can learn and grow in. Individuals who are dynamic, hardworking and dedicated have a chance to pursue an investment banking course and move into the field naturally.
A career in investment banking is highly risky, exciting and dynamic and they are always on the lookout for individuals who are ambitious and charismatic. There are many different types of functions that one performs in investment banking predominantly revolving around raising funds, auditing, client relationship, and mergers.  The biggest function though is to raise equity for your clients and project a growth trajectory.
Hence investment bankers need to make decisions keeping in mind the future of the client and do so in a qualitative fashion. The job also has long hours and involves strategic thinking at every step of the way.

Here are the top ways that one can switch into investment banking from accounting.  
Understand the Functions 
As mentioned earlier in the article, investment banking requires a lot of strategic thinking and making smart choices for your clients. This can be high risk as the company’s future depends on raising funds and taking off. Before looking at switching from chartered accounting, one must evaluate and scope out the work portfolio of investment banking. Individuals who have completed an investment banking training will have a basic understanding of what does it take to raise capital for a company and this is an area of expertise that one must master.
Country Specific Rules 
Before shifting to investment banking, one must understand the specific set of rules and regulations defined in each country for the field of banking. For instance, in India, it is a natural progression for many accountants to switch from chartered accounting to banking and then financial advisors. Some countries may also require an exam to be given in order to pursue investment banking as a career. Understanding this is the key to moving successfully into the investment banking space.
Ability to work with clients
One of the top things that banking and accounting have in common is the option to learn how to build relationships. In investment banking, long term relationships and the ability to upsell and understand your client goes a long way.  If you have good communication skills, are proficient in math and are hard working you already have the foundation for a career in investment banking.
Conclusion
A lucrative career path, investment banking may demand long working hours, quick thinking in a stressful situation and more. However, the results can be deeply rewarding to individuals who pursue the same.

Also Read: How to Become Investment Banker

Round up of Indian PE Jan – March 2019

Posted on by Imarticus Learning
Reading Time: 3 minutes

From an investment perspective, the first quarter of 2019 witnessed a double value jump to USD 7B from Private equity and Venture capitals as compared to USD 3B last year here in India. In January 2019, the big US deal was from SoftBank who are the majority shareholders in Yahoo. Then Japan invested in India’s leading e-commerce giant in the field of kids and baby products, Firstcry. This deal amounted to $397M. However, in Feb 2019, India witnessed a rebound coming from the PIPE investments at a massive $431M. The debt funding for ReNew Power from the US Government was to the tune of nearly $350M, making credit investments reach an all-time high.
All of these deals proved that March 2019 was the flourishing phase of PE, which was 30% higher than the previously recorded high in August 2017, which stood at USD 5.4B. The number of PE/VC deals in March 2019 witnessed a rise of nearly 44% as compared to March 2018.
The remarkable deal of RIL boosting PE investments in 1Q
The leading global infrastructure and finance equity investors, Brookfield Asset Management, has acquired a controlling share in Reliance Jio’s telecom tower and fibre assets to become the largest ever deal in the infrastructure sector and M&A. It is evident that the first quarter of 2019 has had massive PE investments amounting to USD 11B which is more than 35% that was recorded in the first quarter of 2018, making it the best ever quarter for PE investments in India.
The largest ever deal in PE investment was among the top five deals that happened in Q1 2019. The banking, financial service and insurance BSFI sector was another favored sector for PE/VC investments. Amongst which, an 11% stake in SBI life insurance from Carlyle and CPBI amounts to nearly USD 817M with Bharti Airtel having an inflow of USD 726M investment from GIC.  All these types of investments were significantly large ones which ultimately led to an exponential high in PE investments in the first quarter of 2019.
Amidst other sectors, the deal between Brookfield and Reliance Industries Limited tops the chart with USD 6B investments in March 2019.
Finance, infrastructure and e-commerce sectors fared well compared to credit investments
On a year-over-year basis, the profits from the first quarter of 2019 had increased by nearly 37% to the $11.4B increase in PE investments as compared to $8.3B in Q1 of 2018. The number of PE investment deals over the same time frame in 2019 was 239, which was again, way more than the meagre 183 deals made in 2018.
The exponential increase of PE investments in Q1 2019 is largely attributed to the bumper agreements that happened during that period. Among 26 large deals in Q1 2019, the infrastructure deal between Brookfield and RIL was the largest. While analyzing the type of investments all the fields have fared relatively well except the credit investments.
The financial sector which saw a decline of 8% in Q1 2018 has received $2.9B in Q1 2019, which is a commendable performance. The impact of the liquidity crisis of the NBFCs made the financial sector see red in Q4 2018. One of the more notable investments in Q1 2019, is the one made by Softbank into e-commerce centric logistic firm Delhivery, and e-commerce retailer FirstCry.
E-commerce being the talk of the town of-late is set to reach a $200B by 2026 according to a report. In such a backdrop, e-commerce gets a whopping $785M PE investments in Q1 2019. In 2018 India witnessed strong PE investments back out from major firms. In Q1 2019, there was a 30% decline in exits as compared to 2018, which served as good news to the industry. From an overall perspective, however, the technology sector faced major exits of 7 deals amounting to losses to the tune of nearly $511M in 2019.
Bottom Line
With the fading volatility in the market, these open market exits have performed better with an increase of nearly 50% in open market values and volumes. With the phase of average PE-VC value being sharply high, the lower number of investments embarks on the selectivity aspect. Seizing the opportunities to overcome the hurdles should be the motto of private equity investors to reach par excellence.
To know more interesting about this, you can consider our Investment Banking Training

What Are The Ways of Reducing Financial Risk?

Posted on by Imarticus Learning
Reading Time: 2 minutes

Synopsis

One of the biggest things that people learn in investment banking is how to undertake risk and manage it, which makes it a lucrative career to pursue. Here’s how. 

Today, everyone wants to pursue a career in investment banking. One of the biggest reasons which individuals are training in investment banking course and then finding a job in the field is due to the fact that it is a high risk, high pay-out kind of a career.

The industry employees individuals who are driven, hardworking and smart. It requires dedication and the job involves long hours. Many educational institutes are providing certification courses in Investment Banking to individuals in order to pursue this career.

 

Investment Banking Course

One of the biggest things they teach you when it comes to investment banking courses is assessing different kinds of risks for your clients. From operational risk, legal risk to financial risk, there are many things to consider before launching and growing a business. Large multinational organizations go to investment bankers to help them assess the different aspects of running a business including raising capital, risks associated with the business and growth trajectory.

Those who are pursuing a career in investment banking need to understand the financial risk a business is willing to take in order to grow and provide solutions to mitigate or manage the risk. Here are some top ways financial risk can be managed.

Perform a Risk Assessment

At the onset of the business, investment bankers need to take a stock of all the various kinds of risks associated with running a particular business and prepare a risk assessment plan. This will give the business an opportunity to take stock, build ideas and have a plan in place to reduce or mitigate risk. One example that stands out is, it is a good idea to get certain equipment insured so that some of the risks can be transferred to insurance parties.

Maintain a contingency plan

Since we know that every business involves risk a good way to proceed when it comes to taking the business to the next level is by ensuring that there is a plan B. A contingency plan with adequate funds is a good approach to managing financial risks. This means that if you are in a difficult position, you will be able to look at the second plan of action for answers

Reduce Risk of Operation

Sometimes operational risk can lead to financial losses which mean that it is also a financial risk. Having a good management infrastructure in place, keeping employees happy, performing due diligence minimizing credit risk can all go a long way when it comes to reducing operational risk. Operational risk also can be external that is legal issues which can crop up along the way when it comes to running a business. Making sure to consider all the legal and state implications while setting up a business can go a long way when it comes to running a business.

Conclusion

Once investment bankers have learned to deal with various kinds of financial risks, they will be in a better position to help their clients grow and succeed in business.