Overview of Investment Banking in San Francisco

If you have ever talked to any investment banking in San Francisco, they will discuss how overhyped New York’s investment banking is, and somehow, it is true. Of course, just because New York is the largest financial center of the US, it’s natural to be enticed by the hype and exaggeration. But the truth is that San Francisco is now lesser than New York in terms of pay-package, working hours, or the way the bankers approach investment banking.

The actual difference lies in the industries that San Francisco covers, the exit routes that the investment bankers in San Francisco opt for, and the cost of living in San Francisco. For example, if we look at the industries, investment banking in San Francisco concentrates on technology and healthcare. On the other hand, for New York, the industries are much diversified.

If you would like to start a career in investment bankingCareer In Investment BankingAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. read more in the US, your first focus should not be region; rather what specific industry you would like to work in. In terms of cost of living, San Francisco is quite expensive (more expensive than New York).

Let’s now look at the services offered by investment banking in San Francisco

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Investment Banks in San Francisco – Services Offered

The services offered by the investment banks in San Francisco can be divided into two broad dimensions. One is a strategic advisory, and another is a financial advisory. Since the industry focuses on technology and healthcare investment banking in San Francisco, these banks handle similar deals.

#1 – Strategic Advisory:

Under strategic advisory, there are the top three services that the investment banks in San Francisco offer.

  • The first one is a mergerMergerMerger refers to a strategic process whereby two or more companies mutually form a new single legal venture. For example, in 2015, ketchup maker H.J. Heinz Co and Kraft Foods Group Inc merged their business to become Kraft Heinz Company, a leading global food and beverage firm.read more advisory. Under this, they work with clients that don’t want to expand their horizons by merging with a similar company or a company that offers a competitive advantageOffers A Competitive AdvantageCompetitive advantage refers to an advantage availed by a company that has remained successful in outdoing its competitors belonging to the same industry by designing and implementing effective strategies that allow the same in offering quality goods or services, quoting reasonable prices to its customers, maximizing the wealth of its stakeholders and so on and as a result of which the company can make more profits, build a positive brand reputation, make more sales, maximize return on assets, etc.read more.The second service the investment banks offerService The Investment Banks OfferInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more is acquisition advisory. Clients who need this service look for a target company that is a perfect fit for acquiring. Clients take the help of the investment banks to ease off the technicalities for them and smooth out the process.The third service that investment banks offer is divestitures advisoryDivestitures AdvisoryDivesting refers to the act of partially or entirely selling organizational assets to generate funds urgently.read more. In this case, the clients want to liquidate a subsidiary businessSubsidiary BusinessA subsidiary company is controlled by another company, better known as a parent or holding company. The control is exerted through ownership of more than 50% of the voting stock of the subsidiary. Subsidiaries are either set up or acquired by the controlling company.read more and take the help of the investment banks in the process.

#2 – Financial Advisory:

Under financial advisory, there are also three significant services.

  • The first one under financial advisory is private capital raising. Under this service, the bank helps the clients get a way to raise capital.The investment banks’ other two services are IPO advisory and restructuringRestructuringRestructuring is defined as actions an organization takes when facing difficulties due to wrong management decisions or changes in demographic conditions. Therefore, tries to align its business with the current profitable trend by a) restructuring its finances by debt issuance/closures, issuance of new equities, selling assets, or b) organizational restructuring, which includes shifting locations, layoffs, etc.read more. If a company wants to go for a public listing, then the company needs the help of an investment bank.

Even for restructuring, the investment banking in San Francisco helps out their clients make the company more profitable.

List of Investment Banks in San Francisco

  • Goldman SachsJPMorganMorgan StanleyCitibankBank of America Merrill LynchBusiness CapitalInstream Partners LLCInverness Advisors, LLCAssay AdvisoryVenturi & Company LLCAurus AdvisorsOrion Capital GroupTriSpan PartnersVrolyk Capital PartnersMartinwolf M&A AdvisorsStarlight Investments, LLCBoston MeridianJMP Group IncAquilo PartnersLRG CapitalBarnard MontagueArbor AdvisorsFinancial Technology PartnersEaton Capital CorporationRidgecrest Capital PartnersAtalyst Financial GroupWells Fargo FINETGVC Financial Services, LLCWaveEdge CapitalInertia AdvisorsSilicon Valley Partners LLCSteelhead Advisors LLCAtlas Technology Group, LLC

Investment Bank Recruitment Process in San Francisco

Recruitment isn’t a big deal if you want to get placed in investment banks in San Francisco. But it’s important how you approach the recruitment process. If you’re going to get into a specific niche (or industry), you should prepare for that particular industry and be thorough with the recent deals that happened.

At the same time, you need to pay special heed to the network. Once you decide to start your career as an investment banker, you need to network as your life depends on it. If you can grab a couple of internships with reputed investment banks, you will be on your way to a lucrative career.

Culture in Investment Banking San Francisco

In the US, the culture is slightly different in every region. But the things that matter are more or less all the same. For example, if you talk about working hours in San Francisco, it’s at least 85 to 90 hours. In New York, it’s almost similar. Even the cost of living in both of these regions is quite the same.

But if you talk about opportunities, New York is far better than San Francisco. However, if you want to work in only technology or healthcare, San Francisco is a good option.

Investment Banks Salaries in San Francisco

The compensation for investment banking in San Francisco is quite good. As per Glassdoor, here’s the average salary of an investment banking in San Francisco –

source: Glassdoor.com

The average salary of an investment banker in San Francisco is USD 128,836 per annum.

Investment Banking Exit Opportunities in San Francisco

For investment bankers, there are many exit opportunities. But in New York, the IB exit opportunitiesIB Exit OpportunitiesAmong the several exit options available to investment bankers are: 1.Private Equity 2.Hedge Funds 3.Strategy Consulting 4.Fin-Tech 5.Advisory for large corporates.read more are more than in San Francisco because New York is the financial hub of the US.

Still, if you want to quit investment banking, you can join a technology start-up, or you can go into a completely different career domain like private equity or a hedge fundHedge FundA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.read more. Or else, you can also join a corporation and work in the corporate finance domainWork In The Corporate Finance DomainFinancial analyst, cost analyst, credit manager, cash manager, and benefits officer are some of the most popular career paths in Corporate Finance.read more.

This has been a guide to investment banking in San Francisco, a list of top investment banks, and their services. You may also have a look at these Investment banking services in the below countries –

  • Top Investment Banking in Hong KongInvestment Banking in RussiaInvestment Banking in CanadaInvestment Banking in GermanyInvestment Banking in Abu Dhabi