| Asia Investment Banking - Activity | | | | Bankers raising capital belong to the sell side because |
| In the last decade, Corporate Finance activity has | | | | they sell securities to raise capital for companies. On |
| grown exponentially in the Asia and Asia Pacific | | | | the other side of the table we see the buy-side, |
| region. This is driven by increased regulation, and thus | | | | made up of Private Equity Funds, Hedge Funds, |
| a safer investing climate for global investors. With | | | | Funds of Funds, Other Institutional Buyers and in the |
| this, businesses across industries are able to tap onto | | | | case of the public share offering/ Initial public |
| advisory and capital raising capabilities of the global | | | | offering, the buyers can be members of the public as |
| banks. We even see local banks such as Japan's | | | | well. In between these two sides we may have |
| Nomura taking international limelight as they took | | | | brokers who underwrite the public shares to mitigate |
| over Lehman's investment banking business during | | | | some risk. Playing an important but secondary role |
| the recent economic crisis. Many companies in China | | | | are also the rating agencies such as Moody's and |
| are also highly under-leveraged and have had organic | | | | Standard and Poor, whose ratings affect the pricing |
| growth over decades. They are now gradually | | | | of the securities sold. In Asia, the definition of funds |
| tapping onto new capital through debt and equity | | | | is less clearly defined and we often see hedge funds |
| offerings to fund expansion plans. | | | | taking up private equity products as well. |
| Asia Investment Banking - Corporate Finance | | | | Asia Investment Banking -Career & Outlook |
| Most banks serve their clients by working in Sector | | | | Asia jobs very rarely pay higher than that of |
| Teams, which span across Industries. The more | | | | Corporate Finance Bankers. Needless to say, |
| common Sector Teams are Healthcare, Media and | | | | graduates in Asia strive for such a position, especially |
| Telecommunications, Industrial, Commodities, Real | | | | at international banks. Many pursue their MBA or |
| Estate and Financial Institutions. In Asia, teams are | | | | Chartered Financial Analyst certificates for a chance |
| not so clearly defined and are often segregated into | | | | at an Interview. The typical hierarchy at a Bank is |
| country teams. For example South East Asia Teams, | | | | Analyst- Associate - Associate Director - Director - |
| Japan Teams or North Asia Teams. Depending on | | | | Managing Director. Unlike the US or UK, you do not |
| client needs, the banks offer advisory services, which | | | | need an MBA to rise up the ranks, although it is |
| range from Mergers & Acquisitions to Equity or Debt | | | | preferred. Many analysts join the bank upon |
| Financing to share sales. Very often, Bankers get | | | | graduation and get promoted without going to |
| referred to clients through their Wealth Management | | | | business school for an MBA. |
| Division, which handles assets of high net worth | | | | Asia Investment Banking -Conclusion |
| individuals, who are also often CEOs and business | | | | Despite the negative sentiment on Wall Street, |
| owners. In countries like India and China, locals take | | | | Investment Banking is still an extremely lucrative |
| pride in their ancestry and family trees, therefore | | | | industry with huge potential, considering the size of |
| creating a barrier to entry for less connected banks. | | | | untapped markets and high growth projections in |
| Asia Investment Banking - The Players | | | | Asia and Asia Pacific. |