Investment Banking: Italy Edition

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Continuing our series on finance in different regions of the world, today we go to Italy and hear from a reader who completed an MBA program there and then had an internship this past summer at a local Italian investment bank.

We cover a broad set of topics, including how he decided to study in Europe, how he applied and got into a top MBA program there, and then how he used that experience to land his banking internship.

He also had some very interesting thoughts on networking, especially when you’re going for international positions – something on many of your minds these days.

This interview turned out to be quite long (over 3,000 words), but it’s full of insight so I decided to keep the entire transcript intact.

1. Walk us through your resume.

I grew up in the Midwest of the US and completed a Bachelor’s degree in Finance from a state university there.

When I was an undergraduate, I studied abroad in Rome and became very interested in eventually working/living there. Rome wasn’t a great place to find investment banking jobs, but it was a great place to live – plus I was half-Italian, so I already had a connection to the country.

After I graduated, though, I put my plans to work abroad on hold and spent 1 year as a credit analyst at an automotive financial services company.

That was ok, but I eventually found myself bored and wanted to be closer to the markets – so I moved to an asset management firm, where I spent 1.5 years as an Associate.

That was better, but it was a very sales-oriented job (you better enjoy cold-calling) and not exactly my cup of tea.

I wanted to move into something more analytical within finance – and I felt 2.5 years experience was “enough” – so I decided to apply to MBA programs.

Completing an MBA in Italy

How do you go from thinking about an MBA to getting into a top program? Let’s find out:

2. Right, I think a lot of readers are in that same position right now. But most of them are probably thinking about going to business school in their own countries rather than moving overseas – what prompted you to consider and apply to programs in Italy?

I was interested in getting an MBA from a non-Anglo-Saxon culture. I felt having that experience and getting to know another language and culture would be a strong selling point and an amazing opportunity on its own merits.

I was admitted to one of the top business schools in Italy - whereas in the US I got into good, but not top schools, so I figured going abroad might be a wise idea.

And I had already lived in Italy, loved the country, and was interested in working in Europe in the future, so it seemed like a wise decision to go to business school there.

3. How did you find out about and apply for your MBA program? Was the process any different from applying to US or UK business schools?

I learned about this specific program by going to events like the World MBA Tour in Chicago. They can be a great way to learn about foreign universities, meet people who know about the different programs, and decide which international schools might be a good fit.

It was really helpful meeting representatives at booths and exchanging contact information – sometimes those relationships even became early points of reference for the admissions office.

Another takeaway I had from going to these events was that my school was very well regarded and had a great reputation in Europe. Some Spanish, French, Italian, German, and Swiss schools were also quite strong, even though we don’t hear much about them in the US.

The application process itself was the same as for US/UK schools – it’s more focused on the qualitative aspects such as essays and recommendations, compared to something like law school which relies mostly on GPA and LSAT scores.

4. Ok, so you were set on going to Italy and applied both to programs in the US and Europe – were there any language requirements for studying at a European business school?

No, the top MBA programs in Europe are taught in both the country’s native language and English. The most “prestigious” programs are actually 100% in English, and the trend is toward all English.

5. What about paying for school? Business school is an expensive proposition, so did you get loans or did you also work while attending school?

First off, note that while the standard US MBA program is 2 years, in Europe it is 1 – 1.5 years tops. That automatically reduces the price because you’re paying for fewer credit hours, and you get back into the market more quickly.

Just like most other students, I had to borrow to go to school – there is some financial aid, but not enough to cover everything at the MBA level.

There was no time to work or even be a bar-tender – most days in my program I was working or studying from 8 AM to 10 PM.

Business schools have developed the reputation of having easy curricula and not requiring much work, but at least at my school it was like drinking from the fire hose.

6. What is the perception of an MBA from a non-US/UK university? Do banks and other firms still respect it, or is it “less prestigious”?

The degree is not as “portable” as a degree from a top US school would be. In Europe there’s no problem because the top business schools are widely recognized and respected – but outside this continent my school is unknown, so it doesn’t help me too much unless I’m interviewing with someone from Europe.

However, my overseas investment banking internship helps make up for this lack of transferability by giving me a unique selling point.

Recruiting & Networking, Italian Style

Got into a top MBA program… check. Now, how do you go about recruiting and networking into finance in a different country?

7. Ok, so you’re studying in Italy at a top MBA program there – how does the recruiting process work for local banks? Did you have to do a lot of networking?

I relied on on-campus recruiting. All the banks and consulting firms came to my school to recruit, so I didn’t have to be too proactive.

Overall, the recruiting process was less rigorous, at least for internships. My interviews were less focused on technical questions and more case study-oriented. I only had to pass one step before they made me the offer, but that might have been unique to my bank.

The case study itself was based more on the “strategy” and logic behind the deal rather than modeling or technical details – it was almost like a consulting case interview rather than a typical investment banking interview.

8. You didn’t have to use much networking to secure your internship, but these days many readers are thinking of going abroad to network, or using networking to find international positions – any tips for doing that?

Yes, leave no stone unturned. Think of friends, relatives, former co-workers, friends of friends, friends of friends of friends, and in particular think of anyone with an international background.

Did you meet someone from a different country while studying abroad? Does your friend have a dad who works at a bank in Switzerland?

Don’t be shy about why you’re contacting people – the common thought process is that you have to dance around with someone, go to coffee, and get to know them before you can ask for help.

In my experience, though, people are too busy with their own lives just to “get to know” someone better before they’ll help them. I have tried both approaches before, but have found it very difficult to develop a relationship with a complete stranger.

If you have an uncle who knows a guy in London that he used to work with, then ask your uncle to make the introduction via email or to just give you the contact information straight-away.

Then go right after the guy: “Hi, my name is X, I’m a friend of your colleague X, I applied for a position at your company and I was wondering if you could do me the favor of getting my CV in front of the hiring manager. Attached is my CV for your consideration, thank you… etc etc”

In Europe in particular, if you know someone, he/she will DIE to get you in touch with people who might be able to help you. It is very “family-oriented” and friends and acquaintances are much more willing to help you than those in the US would be, at least in my experience.

One final tip: you really need to go there if you’re serious about working in whatever country you’re interested in. I’ve found that networking via phone/email is only minimally effective when trying to find a job overseas, so studying abroad can be a great way to begin networking.

9. Those are some great tips. Let’s say that you’re going to be in a country for only a few weeks – you’re visiting family, “on vacation,” or doing something else that is not officially sponsored by work/school. What’s the best way to network if you don’t have any immediate connections upon getting there?

Use the Internet to find relevant business/networking groups, then go to their meetings. Don’t be shy about “not being a member” – just find the groups and meeting times, get out there and start introducing yourself.

You can also get referrals from anyone you know there, but these days it’s pretty easy to find groups on social networks and even through random Google searches.

M&I Note: I used the same tactic when traveling to Asia – posting a simple announcement on this site resulted in meeting with 20+ readers throughout my trip. The Internet is amazing.

10. What about the logistical and legal side of recruiting and working abroad? As a US citizen, was it difficult to get the appropriate work visas?

Yes, work permits can definitely be an issue. If you’re just going for an internship, it’s not too much of a hassle since you’re only there for a few months – but anything longer than that and you run into problems.

I’m looking for full-time work here now, and as a US citizen I’m having a difficult time convincing local companies in Italy to sponsor me. The bureaucracy is very difficult to navigate and not worth the time and trouble.

To get around that, you need to be creative and try strategies like working for American companies with Italian subsidiaries, or for a US company that just bought an Italian company.

If you’re not from the US you’ll probably have an easier time getting sponsorship in Europe, but there are no guarantees.

11. What is the typical “path” that someone in finance in Italy follows? Does it differ at all from elsewhere in Europe, the UK, or the US?

The “path” is very similar in all those places – a business/finance/economics degree, finance internships, then full-time work.

However, keep in mind that in Europe most undergraduate programs are 3 years, and most people do 2-year Master’s programs afterward – they’re the equivalent of 4-year programs in the US, but on paper it looks like banks hire primarily Master’s students.

Everyone at top schools goes for internships – they might be a bit less common than in the US, but it’s not as if everyone spends their summers sitting on yachts in the Mediterranean sipping wine.

Italian Banking

Now that we know how he became interested in Italy, got into a top MBA program there, and went about recruiting, let’s move into what the Italian banking experience was actually like:

12. What was your banking internship like? Structured? Informal?

My internship was very unstructured. I was anticipating getting crushed with work and staying until at least 11pm every night – instead I found myself reading my Corporate Finance book half the time and waiting for the boss of the “execution” (modeling) department to leave at 9/10pm every night.

I did the same stuff they do at bulge bracket banks, just not as much of it – modeling, valuations, pitch books, multiples, info memorandum’s, the whole 9 yards.

The upside to having a somewhat “random” and unstructured internship was that I got exposure to many different deals and industries.

Also, none of the summer Associates did any marketing work (pitch books) – they just used us for execution (working with clients).

The undergraduate interns (Analysts) handled most of the pitch book and marketing-related work.

13. Everywhere in the world has been hit hard by the recession – were there any differences in Italy in terms of deal activity or overall economic impact? Did you get to work on many live deals?

I don’t know anywhere where deal activity didn’t drop off at least a little bit. Italian banks tend to be very conservative, so they didn’t get tangled up in the CDO mess or anything.

However, the overall economic conditions and credit availability have forced them to cut back on lending, slowing their business model just like at any other bank.

When I was there last summer, most of us hadn’t realized yet how bad the economy was – but when I speak with my former co-workers there now, they constantly bring up how bad things are and how little M&A activity there is.

Hiring is definitely down and they did not give out too many full-time offers this year.

14. What was the culture of your bank like? Did it have more to do with the bank itself, or was it because you were in Italy?

The culture of the bank was amazing. It was a very flat organization with almost none of the traditional investment banking hierarchy – Analysts were working side-by-side with VPs to get deals done and they were fixing models together.

I think this just reflects the culture of local Italian banks – international banks here are better organized with a more rigid hierarchy.

Overall, I really enjoyed that type of environment – people were not overly aggressive or climbing over each other to impress their superiors.

In terms of hours, most people showed up between 9 AM and 10 AM and the office was busy until around 9 PM at night.

We had occasional weekend work, mostly when we were swamped with live deals.

As an intern, the latest I stayed was 11:30 – and that happened just a few times over 2.5 months. I only came in once on Saturday.

15. What about your bottom-line?

Pay was modest compared to international banks, but still very good for southern Europe.

16. Models and bottles?

All you do in Milan is models and bottles.

That’s just the night life – it doesn’t matter whether or not you’re a banker. You get a table, overpay for everything, and try to hang out with models.

We didn’t exactly go to Club Armani every Thursday night, though – it was more about casual happy hours.

We also had many, many coffee breaks during the day as well.

M&I Note: I’m sure their coffee was better than the Starbucks blend that US-based Analysts live on.

Future & “Plan B” Options

So, what do you do after spending a summer in Milan banking by day and bottling by night?

17. Back when you were getting interested in finance, what other options were you considering besides banking?

The usual suspects: private equity, venture capital, management consulting, and corporate finance positions.

I’m also really interested in renewable energy, especially in southern Europe.

German companies, in particular, have been expanding rapidly in southern Europe with renewable energy projects and it’s a big growth area.

If I can’t get into private equity right now, I’m thinking about getting some experience in the renewable energy sector and then joining a PE firm focused on those types of investments.

18. What’s next? How will you leverage your experience in Italy?

I’m still in Milan, looking for a job in Europe. I want to gain experience in a non-Anglo Saxon culture, develop additional language skills (which I still believe are important, even if everyone knows English), and take advantage of my location to travel.

The sponsorship issue and the recession have made things more difficult, so my backup plan is to return to the US and do a lot of networking. These days you don’t get noticed by blindly sending out applications, unless you’re at the top of your class from Harvard/Yale.

For anyone curious, I’ve found that where you got your MBA from matters less than having it in the first place, at least for networking purposes.

M&I Note: These days, even if you are at the top of your class from Harvard/Yale you still won’t get noticed with blind applications…

19. Any parting words of advice for someone looking to complete an MBA program or finance internship abroad?

For the MBA, start doing your research early and start preparing for the GMAT today if you’re even considering it – schools like to see the GMAT score together with the application.

For finance internships, you really need to be in Europe if you want to work in Europe – and the same goes for any other region. You need to go to events or school in the country of your choosing, or find other in-person channels to have a good shot at getting in.

I would recommend doing a Master’s or MBA in the country or continent where you would like to work – then you have the resources and network of the school to leverage, not to mention an amazing experience. And once you start making contacts and talking to people, the size of your network will grow quickly.

The job/internship search process will take a minimum of 6 months end-to-end. There’s some type of career fair happening in almost any city worldwide, so you should seek those out – especially anything sponsored by a bank, by recruiters, or by professional associations.

One final word of caution: As I mentioned above, Americans require sponsorship from the company to work almost anywhere in Europe – and this is usually the deal-breaker for US citizens. Sponsorship is a time cost to the employer and a potential liability, so you need to find a company willing to sponsor you or be more “creative” with your efforts (as explained above).

About the Author

is the Founder of Mergers & Inquisitions and Breaking Into Wall Street. In his spare time, he enjoys learning obscure Excel functions, editing resumes, obsessing over TV shows, and traveling so much that he's forced to add additional pages to his passport on a regular basis.

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50 Comments to “Investment Banking: Italy Edition”

Comments

  1. Bryan says

    I am wondering if you could tell me at what university this person completed their MBA? I am an undergraduate and will be at Bocconi University in Milan next year. Also, I would greatly appreciate if I could be put into contact with this person if they are willing to answer a couple questions.

    • Rowan Adams says

      Hi Brian,

      I, too, was wondering if it is possible to be put in contact with this reader. I’m looking to break into the renewable energy industry at some point in the future so it would be useful to speak with them.

      Thanks,

      Rowan

  2. Fabrício Negrão says

    Is it ok if I ask you a article about Investment Banking in Brazil? I would really appreciate that.

    • says

      They don’t do investment banking in Brazil, they just party on the beach…

      I’ll see what I can do, but I don’t really know anyone in South America in finance

      • Fabrício Negrão says

        Actually there´s a lot of players in Brazil, and the M&A market is really warm, much more than Spain, where I am right now.
        Private Equity funds is realling investing over there. The figures doesn´t lie.

        tks for your attention.

        Your website is fantastic.

          • Brazilian PE says

            Brazilian Bankers and PE players are making more money than it’s US Peers…

          • Brazilian Junior Analyst says

            Hi, Fabricio.
            Brazilian Investment Banking is really comparable to US IB if you work in the top tier (Itaú BBA, BTG Pactual and Credit Suisse). The second tier (BofA Merril Lynch, Morgan Stanley, Citi, Goldman Sachs and JP Morgan – also Rothschild (boutique)) is comparable as well, but they don’t have as many deals as the premier tier, so your remuneration wont be as good. In the 3rd tier you have DB, UBS and the europeans in general. Over there, all you do is pitching and a little bit of DCM, the hours are not as long as in the others, but the face-time is still there, so you would leave aprox. at midnight.
            Currently, the market is doing great here, even though the equity market is not doing so well.
            Summarizing, face-time is the same, hours are the same, and bonuses are also really similar. MDs and VPs can make more money than in US.

  3. Kyle says

    Hey,

    I’m currently completing my undergrad and was looking to study abroad next spring in a program that is split between classes and then 10-12 weeks of an internship. Outside of England, what would you consider the best European cities to study/work in for investment banking and do you know of any specific universities or banking programs that I could target? Thanks

    Kyle

    • says

      I am not that familiar with the best programs / cities in Europe, but I think Germany would probably be your best bet outside the UK. Specific banking programs – in Europe a lot of banks have spring/fall internships and week-long networking events, so I would look into those as well.

      • cruel3a says

        Top University outside the UK for Finance are: HEC (Paris), SSE (Stockholm), HSG (Saint Gallen), Bocconi (Milan), Universidade Católica Portuguesa (Lisbon). Hope it could help…

        • Dutch Girl says

          Perhaps slightly biased but aren’t we forgetting Erasmus in The Netherlands. It is in the top 10 of the FT.

  4. Andre says

    I’m planning on taking up learning another foreign language. I am fluent in Spanish already. I was wondering which in your opinion would be more advantageous for investment banking Italian or Portuguese.

  5. Martina says

    Hi,

    I am an Italian living in the States.
    Thanks for the article. Extremely interesting.

    One little note: the 3+2 degree we have in Europe is NOT an equivalent of an American undergrad. It is actually a Master degree. All the courses during the “+2″ are at the graduate level.
    However, this is one of the big differences in Eu schooling habits: we normally stay at school longer and do not work between BA and Master.
    I could definitely go on with a lot of considerations about the pros and cons. The only thing I am trying to say here is that in Eu degrees count (the school you get the degree from much less…) when you approach a potential employers. So try to get a lot of those papers before you go there!

  6. Chris says

    If your ultimate goal is to work in finance in Italy, how important is it to get an MBA from an Italian business school? If you were to be admitted to one of the top 5 European business schools such as INSEAD in France or IMD in Switzerland, or even a top American MBA program, should you go there instead? SDA Bocconni in Milan is only ranked 38th in the world rankings. Is the trade-off worth it?

      • cruel3a says

        If your final goal is to work in Italy you should learn the italian… An MBA from INSEAD and fluency in italian would definitely be better than an MBA from SDA Bocconi but poor italian language. The fact is that in Italy you deal a lot with SMEs and there just few top executives can speak english. If you can communicate with them in italian that would make a difference.

  7. Chris says

    How important is it to be fluent in Italian to work in Italian finance? Obviously, you’d have to become fluent as quickly as possible if you plan on living in Italy, but is fluency a prerequisite to securing that first Italian finance position, especially if you have a solid resume and MBA degree?

    • Ari says

      Chris,

      I am forreigner currently working in Italy within M&A. My experience is that is can be quite challenging, particularily if you come from a non CEE-member country. I got my position through an internal transfer with the company I work for. Your best bet would be to leverage on any relations you have in your home country who may help you. The job market here is quite difficult, with the economy still being slow and a number of native speakers having returned from City during the last two years. Hence, it is difficult being taken in consideration by headhunters or italian banks by sending a CV and cover letter in English (in my opinion). Furthermore, once you are in, Italian is definitely a must. Work language is to a large degree italian, so in order to excel careerwise language skills turn out more important than a CFA designation or an Ivory League MBA degree.

      Ciao,

      • Lorenzo says

        Chris,
        I agree with Ari, if you want to do apply for Mediobanca, Banca IMI, Banca Leonardo, Unicredit, Lazard and Rothschild, you must be fluent in Italian language…

        Nomura is growing a lot, UBS (now with Sergio Ermotti, former Deputy of Unicredit) will definitly grow in the future. Barclays and Royal Bank of Scotland are recovering from the crisis and doing some serious deals.
        ciao

  8. Erik says

    Very interesting indeed!
    Would the interviewee or anybody else here know what the major investment banks in Italy are?

    Thanks! Erik

  9. Ari says

    Most of the big international banks are present in Italy, but following the crisis there has been a continued shift in market share in favor of the Italian banks such as IMI and Mediobanco.

    • Erik says

      Thanks Ari, I am looking for a job in either strategy consulting or investment banking in Italy, but indeed it will be quite a challenge. Especially since I would prefer to go to Rome. Good to know that it is probably wise to improve my Italian beforehand, maybe I should take some courses in business Italian.

  10. Luca says

    This is a very interesting article for foreign people willing to work in Italy, but what about italian people willing to get a job in ib in the US? I work as an analyst in an asset management firm, and I was thinking about switching to ib, maybe in London or NYC. Do you think it would be possible for me to get an ib job, or better to think of PWM or HF? What about the opportunity in the US?

    Thank you!

    • says

      The problem is that it’s almost impossible to get a work visa in the US because the US government is crazy and doesn’t let anyone into the country – it would be much easier to move to London, and PWM would be easier than IB.

  11. Daniele says

    Would it be possible to have the name of the school and the bank?

    The idea of being home by 23.30 at the latest sounds rather appealing.

    Anyway your website is awesome.

  12. Chris says

    2 questions:

    1. What cities in Italy besides Milan have a strong investment banking industry? Florence? Rome?

    2. I’m thinking about spending a month or two in Italy this summer taking full time language courses to really improve my Italian fluency. Any recommendations on which city I should choose?

    I’ve spent about 6 months living in Milan before, so I’d like to try a different city. I’m a twenty-something male, so I’m looking for a city with plenty of fun and nightlife.

    I imagine the southern coastal cities would be the best places for the summer months, but I know that Northern Italians frown upon the Southern Italian accent. Is this something I need to be concerned about since I’ll be taking language courses full time, especially since I intend to continue my investment banking career in Italy?

    • says

      1. It is mostly Milan, other cities have less of a business focus.

      2. Do not really know but anything would work, Milan is probably the best but the other 2 are fine.

      Really not sure on your last question but maybe someone else can help.

    • Sasa says

      The only other city is Rome. Since some of the biggest italian companies have officies there, some BB have them too (i.e.: Deutsche Bank).
      Maybe you should go to Florence. You will not have the accent problem and you can find a lot of fun on the coast, not that far from the city.

    • Rohan says

      MMm well there is a divide between south and north Italy.
      The north is more industralized and south is not so much , south is considered to be more into farming.
      Plus many mafia gangs exist in south of italy , living in mansions in the islands(not sure how true though) , it is estimated that mafia business contributes 5% to the total Italian GDP
      You may face prejudice if youre a southern italian in the north.
      For a good career in finance stay in Milan or at the most in turin

  13. Marco says

    Hi,

    I live in Rome,I’m italian and for those who are planning to come here to work in finance I must discourage you cause this is not the place to do it..Milan is the only city in Italy where you can make a good career and where you can speak with people about the latest decisions of the Fed being sure that they don’t think you’re talking about your friend Federico..I know for sure that in Milan is quite different but when I think about a great career in Finance I can’t help thinking about just few cities in the world (New York,Chicago,London,Hong Kong,Singapore,Tokyo and Shanghai) the other ones I think as second bests…but I’m not the expert here,I just wanted to share with you my feelings.

    If it might help….in Milan it’s plenty of models cause it is considered one of the Fashion Capitals in the world.

  14. Alessandro says

    Hi,

    I am an Italian/American (fluent in both languages) with an undergraduate in Strategic Marketing from the UK and a Post-Grad. in Hospitality Management from Swizterland. I am thinking of getting my studies out the way while i am still young and in the academic frame of mind. My idea is to go into development and investment in the hospitality industry. I would like to undergo an MBA at SDA Bocconi as my desire is to start a career. How advisable is it to do the MBA straight away, and what possibility do i have to encounter my desired industry through the italian investment banking industry, and obviously at a lucrative level.

    Best regards,
    Alessandro

    • M&I - Nicole says

      I don’t think you need an MBA if you already have a post-grad degree in hospitality management. I’d suggest you to speak with hotel investment groups if you’re at all interested in the industry.

      If you want to break into IB, an MBA might help retool your background.

      Readers may have better insights to the italian IB industry; I am not familiar with it…

  15. says

    Hi,

    Can you please put me in touch with the writer of this article? I am very interested in obtaining an MBA and working in Italian IB.

    Thanks,

    Andrew

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