A Springboard to a Career in Finance

After leaving a law career, this Oxford graduate makes London home and dives into investment banking. How he did it, and how he spends a typical day

by Joe Mik

After receiving a law degree from Montreal's McGill University, I worked as a tax adviser at KPMG. At KPMG I quickly learned that the investment banks drove the deals, because it was the banks' capital at risk. I realized I eventually wanted to become a decision-maker, and not just an adviser. To make a transition to finance, I knew I would have to become more numerate and I would need the prestige of a reputable business school.

Oxford's one-year program was organized quite differently from those at U.S. business schools. My last set of exams followed a graded internship at Macquarie Bank, and after my exams were complete, I accepted a full-time position there. Macquarie focuses primarily on infrastructure assets such as airports, toll roads, and utilities, and I am a tax manager in the investment banking division.

In this role I mediate between external advisers, law and accounting firms, and the analysts who do the financial modeling—the cornerstone of our business. This often involves translating legalese into mathematical functions understood by Excel. About 15% of my time is spent designing fund structures that aggregate capital raised pursuant to private placements (so-called private equity) and from initial public offerings (IPOs, or flotations). I focus the remaining 85% of my time on corporate finance transactions, that is, bids for target assets, reorganizations of assets held by our funds, and divestitures.

A Typical Day

6:30 a.m.—Rise and head for the gym or, weather permitting, go running. The run takes me past St. Paul's Cathedral and along the Victoria Embankment, which follows the Thames River to Parliament in Westminster. Exercise is my antidote to stress.

8:30 a.m.—Arrive at the office, which is two minutes from my front door. To avoid commuting, I live near work in the Square Mile rather than in one of the many picturesque neighborhoods of London. The Tube is both dreadfully congested and prone to breakdowns.

9 a.m.—Read through e-mails over breakfast. When a bid is in progress, I may have more than 100 messages waiting for me in the morning. Managing the flow of information is the most challenging part of my job. I typically work on five to eight deals at a time, so keeping the details separate in my mind can be a challenge.

9:30 a.m.—Review model. The model uses a discounted-cash-flow analysis to value an asset one of our funds would like to buy.

11:30 a.m.—Meet with colleagues from the corporate finance team about a proposed bid. They describe the asset and set the timetable for acquisition. Sometimes we participate in an auction managed by another bank; other times, we negotiate directly with the seller. My colleagues will do comprehensive due diligence to arrive at the valuation. The tax team's work influences the mix of debt and equity and the jurisdiction in which the acquisition may take place.

12:30 p.m.—Lunch meeting with a law firm showcasing its technical knowledge. These meetings help us stay abreast of legislative developments across Europe.

2 p.m.—Round up one of the fund directors for a board meeting convened to approve the listing of some Eurobonds issued to finance an acquisition. I draw the corporate structure on a whiteboard and explain the implications. Once the directors sign, the paperwork is shipped to the appropriate exchange for confirmation of listing.

4 p.m.—Book flight and hotel. My group covers all 25 members of the European Union; I have visited nine countries in the past year. It is much easier to address problems in person, particularly when dealing with a language barrier. Fortunately most European capitals are within a two-hour flight of London.

4:30 p.m.—Read through an opinion letter that has just arrived from one of the accounting firms advising us on a deal. I mark it up and send it back for a second draft. Review indemnities in Sale & Purchase Agreement to ensure we are protected against any undisclosed liabilities.

10 p.m.—Head home for dinner. Call my girlfriend (who was a classmate in the MBA program). Go to bed.

My Ticket to Macquarie

Typically the bank recruits from business schools around the world, as well as attending careers fairs and soliciting résumés on the company Web site. All candidates interview with the human resources department and the group to which they are applying, and all candidates (even those who have interned with the bank) are asked to complete a test similar to the GMAT. After the HR stage, generalists, defined as MBAs who do not bring industry-specific knowledge, tend to interview with several departments (typically corporate finance and funds management) whereas specialists (like me) speak immediately to their team of interest.

An MBA gave me credentials needed to facilitate a move to an investment bank and to a major financial center such as London. Without a degree from a top school, I would not have been able to obtain a residency permit in Britain. However, a business-school degree is not strictly necessary for my position or for any position at Macquarie Bank. None of my colleagues have MBAs; they trained as accountants or lawyers. That said, I would not have obtained my position absent the degree. The coursework gave me the quantitative skills necessary for the position and, perhaps more important, the school placed me with Macquarie Bank as part of a graded internship.

The most valuable courses I took at Oxford were those in quantitative finance. An intensive semester-long course in Excel modeling along with rigourous study of accounting principles would have made my first few years in investment banking far easier.

Mik is with Macquarie Bank Limited, and is a member of the University of Oxford's (Said) MBA class of 2005.