Yasin Ejaj

CFA Level 3 candidates - Chalk & Board essay mocks provide a full curriculum review and teach how to integrate the LOS concepts & modules. I will put it all together for you. Get rid of memorization! Know it. https://chalkandboard.org #cfaprogram #cfaexam #cfa

1

Private equity compensation can be surprising—annual cash may seem moderate compared to some IB or Tech roles, but over the medium to long-term, in the right seats, it can get very exciting. Many factors influence how funds and companies structure their compensation and benefits, but fund size often dictates their capacity and serves as a benchmark among peers. When negotiating, it's crucial to consider the economics of the fund. There are countless ways to structure compensation to align yours and the funds interests whilst incentivising desired behaviour. It's all a conversation to find an equitable outcome. #privateequity #venturecapital #growthequity #compensation #financecareers

22

1 Comment

If you want to pass your CFA Level 3 exam confidently, learn how to master your constructed response answers with Chalk & Board essay mocks. I review and grade them: https://chalkandboard.org #cfaprogram #cfaexam #cfa

2

Mezzanine debt is a type of hybrid financing that combines elements of both debt and equity. It's positioned between senior debt (like bank loans) and equity (like common stock) in a company's capital structure. Mezzanine debt typically carries higher interest rates than senior debt due to its riskier nature, but it often includes equity-like features such as warrants or conversion rights. This allows the lender to convert their debt into equity under certain conditions. Mezzanine debt can be a strategic option for companies seeking capital, as it provides additional leverage without diluting equity and offers a flexible structure to meet the specific needs of both the borrower and the lender.

1

Interview Question in #PrivateEquityFundAccounting When interviewing professionals for a position in private equity fund accounting, you might want to assess their understanding of finance, accounting principles, and their ability to work with complex financial data. Here are some interview questions tailored for that purpose: 1. Can you explain what private equity is and how it differs from other types of investments, such as public equity or fixed income securities? 2. What do you understand by the term "fund accounting," and how does it relate to private equity? 3.Walk me through the typical lifecycle of a private equity investment from the initial investment to the eventual exit. 4. How do you calculate the Net Asset Value (NAV) of a private equity fund? 5.What are the key components involved in this calculation? 6.What are carried interest and management fees in the context of private equity funds, and how are they accounted for? 7.Can you discuss some of the key challenges and complexities involved in private equity fund accounting, especially compared to traditional accounting for publicly traded securities? 8. How do you ensure compliance with regulatory requirements and accounting standards when managing private equity funds? 9.Can you provide examples of financial statements or reports commonly used in private equity fund accounting, and explain their significance? 10. How do you handle valuations of illiquid assets in a private equity fund, especially in the absence of active market prices? 11.Have you worked with any accounting software or tools relevant to private equity fund accounting, such as Investran or eFront? If not, how do you plan to familiarize yourself with these tools? #PrivateEquityInterviewQuestion #PrivateEquity# #InterviewPreparation

313

26 Comments

Macquarie Group today announced the offer of a new Additional Tier 1 capital instrument, Macquarie Group Capital Notes 7 (ASX:MQGPG), to raise $1 billion with the ability to raise more or less (Offer). The Offer includes a Reinvestment Offer for Eligible Macquarie Group Capital Notes 3 Holders (ASX:MQGPC). Shaw and Partners is pleased to be appointed as Joint Lead Manager to the Offer. The Margin is expected to be between 2.65% and 2.85% per annum and will be determined through the bookbuild. Distributions are non-cumulative and are expected to be paid quarterly in arrears, subject to the satisfaction of the Distribution Payment Conditions, which include that payment of Distributions are within the absolute discretion of Macquarie. The Distribution Payment Dates are 15 March, 15 June, 15 September and 15 December. The first Distribution is scheduled to be paid on 16 December 2024. Macquarie Capital Notes are Callable at MQG’s option on 15 December 2031, 15 June 2032 or 15 December 2032 (first approximately 7.25 years), or following a Tax or Regulatory Event. Macquarie Capital Notes 7 will Mandatorily Convert into Ordinary Shares on 15 December 2034 (subject to certain conditions), unless they are converted, Redeemed or Resold earlier. This offer is restricted to Australian Resident Wholesale clients (Sophisticated or Professional) and clients that receive personal financial product advice from a financial adviser to acquire Macquarie Group Capital Notes 7. For more information, please contact your Shaw and Partners Adviser. Well done Conrad Anderson, Martin Crabb, Jake Burgess, Damien Williamson and everyone at Shaw and Partners who was involved. #hybridsecurities #capraise #wealthmanagement #financialservices ‘The issuer of the securities is Macquarie Group Limited ABN 94 122 169 279. Offers of the securities will be made in (or accompanied by) a copy of the disclosure document, available at Macquarie Group Capital Notes 7 Prospectus - 19 Aug 2024 and you should consider the disclosure document carefully before deciding whether to acquire the securities. To acquire securities under the offer investors will need to complete an application form accompanying the disclosure document. For more information, please contact your Shaw and Partners Adviser.’ 

3

Want to pass your CFA exams confidently? Use Chalk & Board for your prep! I've taught thousands of CFA candidates to pass these exams and I'd love to teach you: https://chalkandboard.org #cfaprogram #cfaexam #cfa

7

🎉 Happy Friday, everyone! 🎉 As we wrap up the week, we're excited to share some awesome new roles in the investment banking space. If you have been affected by some of the layoffs that happened in the last couple of weeks or if you’re thinking about a career move, or even just curious, we’ve got some seriously great opportunities you’ll want to check out: 📍 Midwest: Vice President – Financial Institutions Group/Banks Vice President – Industrials 📍 New York City: Associate – Consumer Senior Analyst – Tech/Fintech 📍 Washington, DC: Associate – Aerospace & Defence 📍 Bay Area: Director – Software M&A Managing Director – Tech / Software/ Cyber If you're looking for a change or know someone who is, let’s chat! We’ve got the inside scoop on these roles, and we’d love to help you find your next big move. Drop a message, tag a friend, or just DM us directly! Let’s make some career magic happen this Friday 💼✨ #Hiring #InvestmentBanking #CareerMove #FinanceJobs #Recruiting #JobOpportunity #FIG #Industrials

8

1 Comment

Michael Cembalest, JPM AM | There’s no place like home A surge in the Japanese Yen is resulting in home repatriation of Yen-funded positions overseas, and close-out of Yen-funded positions abroad. While Google was found guilty of home bias anti-competitive search engine behavior, any judicial remedies could be as bad for recipients of Google’s shelf space payments as they are for Google itself. Work-from-home trends have plateaued at ~30%, which has important implications for owners of impaired office buildings. Most distressed sales now require discounts of 60%+ vs pre-COVID levels; the fundamentals of the office sector explain why. #yencarrytrade #tech #google #antitrust #wfh #realestate #office #creloans #covid

122

1 Comment

Folks, the CFA exam pass rates are low enough already without YOUR name added to the retaker list. Use Chalk & Board mocks to help pass confidently: https://chalkandboard.org #cfaprogram #cfaexam #cfa

4

1 Comment

What if you were a PE Analyst…? You would typically do the following A) Sourcing: i.e. Hunting for New Investment opportunities 1) You look for companies seeking investments by scanning through rumors, management commentary, news, portfolio of fellow PE firms 2) You will be approached by investment bankers from various IB firms each pitching you to invest funds in the opportunities/companies they bring to you. 3) This gives you a list of "in the market" opportunities B) Analysis: i.e. Investigating the Opportunity 1)  You will get the Non-Disclosure Agreements (NDA) signed if required 2)  Collecting and analyzing data from the company/Investment Bankers 3)  Building valuation, spending time with the management, scanning competition and market C) Execution: i.e. Getting the deal done 1) Figuring out a Deal Structure 2) Sifting through Dataroom 3) Preparing Operating and Financial model 4) Preparing detailed investment memos for Partners/Principals 5) Conducting interviews and site visits 6) Co-ordination with other advisors working on the deal like Investment Bankers, Consultants, Auditors, Lawyers etc. D) Due Diligence: i.e. Verification Stage 1) Once the deal structure has been finalized and the PE decides to go ahead with the deal the due diligence starts. 2) Verifying the details provided by the company against the official documents (i.e. Sanction letters, asset titles etc.) 3) For bigger deals, this often gets outsourced to professional audit/law firms. 4) On certain occasions, for ex. you get an opportunity to collaborate with sector experts like geologists, engineers for sectors like O&G etc. E) Monitoring and Value Creation 1) Preparing 100 days' plan for the Investee company 2) Tracking performance of the investee company against the initial plan 3) Preparing and attending monthly reporting and quarterly board meetings 4) Reviewing post acquisition improvement plans for the portfolio company 5) Generate value for the portfolio company and eventually drive the IRRs on the investment F) Exit: i.e. Selling the Portfolio Company 1) Exit phase involves nearly similar work (valuations, IRRs, payback period etc.) as done during the investment phase except that you are now sitting on the other side of the spectrum. 2) Lot of collaborative work with lawyers, accountants etc. 3) Exploring alternative exit routes: e.g. IPO, trade sale 4) Comparing offers from various buyers 5) Calculating the waterfall of proceeds G) Fundraising: i.e. Raising money from Limited Partners 1) A PE is always on the lookout for investors for its upcoming funds 2) Computing fund returns 3) Keeping the Limited Partners (Investors) updated on the returns ----------------------------------- Launching the next cohort - Investment Banking Training Live - Sep 22 https://lnkd.in/dR24g77T

78

1 Comment

Will a CFA help me get a core finance role? One of the most common questions I get... My answer to this! Why should one do the CFA program? ❌ The wrong reasons - Many in my peer group are doing it, so I should also do it - It will add a certification in my resume. If this is the reason for doing the CFA, and you believe that just doing CFA will get you a job, then don’t do it. ✅ The Right Reason I want to build a #career in Finance – and want to expand my knowledge gaining conceptual clarity. ▶️ What the CFA program will do for you? It is important to be clear of the expectations of what CFA will do for your career. The CFA program is designed to equip working professionals with solid conceptual knowledge around Financial Markets. It improves your odds of success in career, or those of getting a job. But remember, it just IMPROVES the odds. There is still no guarantee. If the probability of getting an Investment Banking job is 20%, it may improve it to 50%. And while it is a great course, and is changing the curriculum to add practical aspects of financial modeling and other topics, you still need to practice applying to concepts to real life on your own. Even while doing the CFA, you would not be reading annual reports or decoding businesses, which are core skills needed in roles in #valuation and #investmentbanking ▶️ So should one do the CFA? - Yes! To my mind, it is not a question of “IF”, but more a question of “WHEN” - It is a great course – BUT only if you can derive the max benefit out of it. A few years of experience in #finance helps in that. - Do it for the learning, NOT for FOMO ▶️ What should I do to leverage the CFA to the maximum extent? - Apply the concepts in real life - Build a valuation model of a business - Decode its annual reports - Understand Portfolio Management Pick up projects or courses that help you practice these concepts, and apply to real life case studies. Remember, the CFA program is a great one, but if complemented with practical learning, it can become a real game changer for you. ----- I (Peeyush) help people build a career in finance. Do go through some of my earlier posts

258

11 Comments

Hugh Son, CNBC. Goldman Sachs reported a stronger-than-expected performance in the first quarter, with earnings and revenue surpassing analysts' projections due to significant growth in trading and investment banking. The company earned $11.58 per share on $14.21 billion in revenue, marking a 28% profit increase to $4.13 billion from the previous year. This was substantially higher than the anticipated earnings of $8.56 per share and revenue of $12.92 billion. The boost in revenue, which exceeded expectations by over $1 billion, was driven by a 10% rise in fixed income trading revenue to $4.32 billion and a 10% increase in equities trading to $3.31 billion. Additionally, investment banking fees surged by 32% to $2.08 billion, primarily fueled by heightened debt and equity underwriting activities. Despite the positive trends in trading and investment banking, Goldman Sachs's asset and wealth management division only met expectations, with an 18% increase in revenue to $3.79 billion. The bank's smallest division, Platform Solutions, also saw a 24% rise in revenue to $698 million, surpassing estimates due to higher credit card and deposit balances. Goldman Sachs's focus has shifted from retail banking to enhancing its asset and wealth management services, aligning with the broader capital market activities that typically generate most of its revenue. This strategic pivot comes as the bank moves past previous challenges in the capital markets and retail banking under CEO David Solomon's leadership. Solomon noted that the capital markets are showing signs of reopening, which bodes well for future activities. This optimistic outlook is shared by Goldman Sachs's peers, including JPMorgan Chase & Co., Citi, and Wells Fargo, all of which also reported better-than-expected results. Solomon might face inquiries regarding recent high-level departures at the bank, reflecting ongoing leadership changes. #goldmansachs #earningsreport #investmentbanking #tradingrevenue #wallstreet #financialmarkets #equitiestrading #fixedincome #capitalmarkets #wealthmanagement #bankingnews #financialservices #stockmarket #corporatefinance #assetmanagement #marketanalysis #financeprofessionals #investmenttrends #bankingsector #financialperformance

2

Whether it’s for Level 1, 2 or 3, the right review provider can make or break your exam journey. Look for providers who agree to follow the CFA Institute guidelines and standards in their review offerings as well as communication with candidates. The CFA website offers a list of review providers whose instructors are CFA Charterholders and meet certain criteria such as updating their curriculum annually. Don't pick a provider who has the CFA institute logo on their website – the CFA does not allow this and it’s an instant red flag. Visit LevelUpBootcamps.com for more information on how to turbocharge your CFA exam prep. Access the CFA Institute's list of providers: https://lnkd.in/gKD5YN2B #cfa #cfaexam #cfalevel3 #cfaleveliii #cfainstitute #cfaprogram

1

Check out the 5th issue of Finance Theory Insights, "Social Dimensions of Finance," available at https://lnkd.in/ega43ZbU. Finance Theory Insights summarizes recently published papers, in non-technical terms, explaining new results and exploring implications for regulators and practitioners.

2

Mechanism of a Treasury Futures Contract at CME A Treasury futures contract at the Chicago Mercantile Exchange (CME) is a standardized agreement to buy or sell a specific amount of a U.S. Treasury security at a predetermined price on a future date. The contract's terms, including the underlying security, maturity, delivery month, and minimum price fluctuation (tick size), are standardized to facilitate trading and settlement. The Trading Process: * Opening Trade: A trader places an order to buy or sell a Treasury futures contract. The order is matched with an opposite order, creating a trade. * Marking to Market: The value of the contract is adjusted daily based on the change in the price of the underlying Treasury security. This daily adjustment is known as "marking to market." The profit or loss from these adjustments is settled in cash daily between the buyer and seller. * Position Maintenance: Traders must maintain a certain amount of margin in their account to cover potential losses. If the margin falls below a specified level, the trader may be required to deposit additional funds. Delivery Process The delivery process for a Treasury futures contract occurs during the delivery month. The buyer and seller can choose to: * Physical Delivery: The buyer takes physical delivery of the underlying Treasury security from the seller. * Cash Settlement: The buyer and seller agree to settle the contract in cash, based on the difference between the contract price and the market price of the underlying security on the delivery date. Example: A 10-Year Treasury Futures Contract * Underlying Security: A 10-year U.S. Treasury note. * Contract Size: $100,000 face value. * Delivery Months: March, June, September, and December. Suppose an investor buys a December 10-year Treasury futures contract at a price of 100. The contract price is quoted as a percentage of face value, so 100 means the contract price is $100,000. * Marking to Market: If the price of the underlying 10-year Treasury note increases to 101, the value of the futures contract increases by $1,000 ($100,000 * (101 - 100)). The investor will receive a $1,000 credit to their account. * Delivery: In December, the investor can either take physical delivery of the 10-year Treasury note or cash settle the contract. If the investor chooses cash settlement and the market price of the note is 102, the investor will receive an additional $1,000 in cash. By understanding the mechanism of a Treasury futures contract, traders can effectively manage their risk and exposure to interest rate fluctuations. In case you are looking for more more publications like above just let me know in the comments 😊.

7

Boston based Fidelity Investments closes Fidelity Venture Capital Fund I at $250 million #Fidelity Investments, the Boston-based financial firm, has announced the final closing of Fidelity #VC Fund I LP, securing $250 million in committed capital. The fund reached its final close on September 30, 2024, with strong support from high-net-worth individuals, family offices, and registered investment advisers. This new fund will primarily focus on making direct, minority investments in mid to late-stage private companies. While it has a global investment mandate across various sectors, there is a particular emphasis on the United States and industries like technology, media, and telecommunications. Impressively, the fund has already invested about $31 million in ten companies across sectors such as aerospace, defense, artificial intelligence, data, and e-commerce. Building on over 15 years of experience investing in private companies, Fidelity continues to concentrate on rapidly growing disruptors with durable competitive advantages and seasoned management teams. To date, the firm has made over 600 investments in more than 350 private companies, deploying over $28 billion of capital on behalf of its suite of mutual funds. With a workforce of more than 75,000 associates across the United States, Ireland, and India, Fidelity is also a significant provider of custodial services, overseeing more than 5,000 alternative products and managing over $80 billion in alternative investment assets under administration for its institutional and intermediary clients. The article on #VCwiretech in the first comment.

2

2 Comments

Will a CFA help me get a core finance role? One of the most common questions I get... My answer to this! Why should one do the CFA program? ❌ The wrong reasons - Many in my peer group are doing it, so I should also do it - It will add a certification in my resume. If this is the reason for doing the CFA, and you believe that just doing CFA will get you a job, then don’t do it. ✅ The Right Reason I want to build a career in Finance – and want to expand my knowledge gaining conceptual clarity. ▶️ What the CFA program will do for you? It is important to be clear of the expectations of what CFA will do for your career. The CFA program is designed to equip working professionals with solid conceptual knowledge around Financial Markets. It improves your odds of success in career, or those of getting a job. But remember, it just IMPROVES the odds. There is still no guarantee. If the probability of getting an Investment Banking job is 20%, it may improve it to 50%. And while it is a great course, and is changing the curriculum to add practical aspects of financial modeling and other topics, you still need to practice applying to concepts to real life on your own. Even while doing the CFA, you would not be reading annual reports or decoding businesses, which are core skills needed in roles in #valuation and #investmentbanking ▶️ So should one do the CFA? - Yes! To my mind, it is not a question of “IF”, but more a question of “WHEN” - It is a great course – BUT only if you can derive the max benefit out of it. A few years of experience in finance helps in that. - Do it for the learning, NOT for FOMO ▶️ What should I do to leverage the CFA to the maximum extent? - Apply the concepts in real life - Build a valuation model of a business - Decode its annual reports - Understand Portfolio Management Pick up projects or courses that help you practice these concepts, and apply to real life case studies. Remember, the CFA program is a great one, but if complemented with practical learning, it can become a real game changer for you. ----- Next batch of our flagship program - the Analyst Program launching on 9th Nov 24. This is one of the most comprehensive and practical programs if you are looking to master your valuation skills. You will build detailed valuation models on 5 companies from different sectors during this. Apply here https://lnkd.in/fJs-AEt ---- Peeyush Chitlangia, CFA I help professionals enhance their career in finance. Do reach out if you are looking to learn practical aspects of financial valuation and modeling.

187

8 Comments

Liquidity Analysis Credits to Bojan Radojicic  follow him for more finance insights! ~~~~~~~~~ 𝙏𝙝𝙚 𝙤𝙧𝙞𝙜𝙞𝙣𝙖𝙡 𝙥𝙤𝙨𝙩 𝙞𝙨 𝙝𝙚𝙧𝙚: Learn how to do liquidity analysis. 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝗯𝗮𝗹𝗮𝗻𝗰𝗲 𝘀𝗵𝗲𝗲𝘁 𝗿𝗲𝘃𝗶𝗲𝘄 What is important for liquidity? • Current assets • Receivables • Overdues • Cash • Current liabilities • Direct debt Review changes versus last period 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲 𝗯𝗮𝘀𝗶𝗰 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗿𝗮𝘁𝗶𝗼𝘀 → Quick ratio → Cash ratio → Current ratio → Working capital turnover → and others 𝗖𝗼𝗺𝗽𝗮𝗿𝗲 𝗮𝗰𝘁𝘂𝗮𝗹 𝗿𝗮𝘁𝗶𝗼𝘀 𝘄𝗶𝘁𝗵 𝗯𝘂𝗱𝗴𝗲𝘁𝗲𝗱 𝗮𝗻𝗱 𝗹𝗮𝘀𝘁 𝗽𝗲𝗿𝗶𝗼𝗱 𝗿𝗮𝘁𝗶𝗼𝘀 𝗖𝗼𝗺𝗽𝗮𝗿𝗲 𝘄𝗶𝘁𝗵 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗼𝗿𝘀 𝗠𝗮𝗸𝗲 𝗿𝗶𝘀𝗸 𝗮𝘀𝘀𝗲𝘀𝘀𝗺𝗲𝗻𝘁 𝗕𝘂𝗶𝗹𝗱 𝗮𝗰𝘁𝗶𝗼𝗻 𝗽𝗹𝗮𝗻 𝗳𝗼𝗿 𝗶𝗺𝗽𝗿𝗼𝘃𝗲𝗺𝗲𝗻𝘁 ~~~~~~~~~ 📌 If you want to upgrade your career in finance, start with our Corporate Finance Modeling Masterclass: 💠 Planning and forecasting 💠 Cash flow management 💠 Financial statement analysis 💠 Valuations Start here: https://bojanfin.com/ ~~~~~~~~~

43

5 Comments