The Wall Street Lab – Details, episodes & analysis

Rami Cassis, founder and CEO of Parabellum Investments, discusses how his firm operates as a hybrid between a family office and private equity firm. He provides an inside look at his investment approach, building relationships and reputation, and his perspective on improving private equity's image.

Key Topics and Timestamps:

• What a hybrid family office and private equity firm is and why Cassis cares about private equity image [00:02:00 - 00:05:45]
• Cassis' approach to sourcing investments and what he looks for in an acquisition target [00:05:45 - 00:10:15]
• How valuation discussions unfold and avoiding deal fatigue [00:10:15 - 00:15:00]
• The importance of honoring your word in building relationships and reputation [00:15:00 - 00:20:00]
• Integrating a new acquisition and exiting investments [00:20:00 - 00:25:00]
• Tips on deal negotiations and avoiding concessions [00:25:00 - 00:30:00]
• Working with management teams and the role of chairman [00:30:00 - 00:35:00]
• How private equity can improve its image and be a force for good [00:35:00 - 00:40:00]
• What Cassis looks for when hiring junior team members [00:40:00 - 00:45:00]
• The importance of diversity and avoiding "assholes" [00:45:00 - end]

More about our sponsor Fintalent.io: https://fintalent.io

You can find all episodes of The Wall Street Lab Podcast on https://thewallstreetlab.com/

Check Out these Wall Street Oasis courses:

Modeling

Elite Modeling Package: https://il130.isrefer.com/go/TWSLElite/TWSL/

LBO Modeling Course: https://il130.isrefer.com/go/TWSLLBO/TWSL/

Real Estate Modeling Course: https://il130.isrefer.com/go/TWSLRE/TWSL/

In this episode, Christina Bresani, Managing Director and Head of Corporate Advisory at William Blair, shares her insights and experiences in investment banking and corporate advisory. She discusses her background, breaking into the industry, and the importance of networking. Christina explains the role of corporate advisory and its responsibilities in mergers and acquisitions, including advising clients on acquisitions, divestitures, mergers, and defending against activists. She emphasizes the changing landscape of friendly and hostile takeovers and the need for valuable relationships with clients. Additionally, Christina highlights the importance of diversity and the initiatives taken by William Blair to support women in investment banking. The episode concludes with her advice to be open to learning, curious, and true to oneself in the industry.

We discuss the following topics:

• Christina's background and journey in investment banking
• Breaking into the industry and the importance of networking
• The role and responsibilities of corporate advisory in mergers and acquisitions
• Preparing for shareholder activism and engaging with activists
• Evaluating defense profiles and best practices in the boardroom
• The current landscape of friendly and hostile takeovers
• The importance of diversity and initiatives to support women in investment banking

More about our sponsor Fintalent.io: https://fintalent.io

You can find all episodes of The Wall Street Lab Podcast on https://thewallstreetlab.com/

Check Out these Wall Street Oasis courses:

Modeling

Elite Modeling Package: https://il130.isrefer.com/go/TWSLElite/TWSL/

LBO Modeling Course: https://il130.isrefer.com/go/TWSLLBO/TWSL/

Real Estate Modeling Course: https://il130.isrefer.com/go/TWSLRE/TWSL/

Welcome to the Wall Street Lab podcast, where we interview top financial professionals and deconstruct their practices to give you an insider look into the world of finance.

Today we're joined by Krista Morgan, a general partner at Stage, an early-stage private equity firm based in Denver, Colorado.

She's also the co-founder of Aelin.ai, an artificial intelligence platform helping small businesses prepare for loans. She's currently a board member of Peak Beverage. 

Krista holds a Bachelor of Arts in Economics and Political Science and a Diploma in Liberal Arts. 

In this interview, we will discuss:

• How Krista and her co-founder founded Stage
• Her experiences running a private-equity firm
• Managing relationships with founders and investors
• Her approach to funding startups and getting returns

More about Stage: https://stagefund.com/ 
More about Krista: https://www.linkedin.com/in/kristamorgan/ 
More about Fintalent: https://fintalent.io/

You can find all episodes of The Wall Street Lab Podcast on https://thewallstreetlab.com/ 

Most of you are familiar with the CFA designation – the one that makes you lose at least 3 Springs of your life (if you are lucky), your friendships and sometimes your partner. The one that makes you, according to CFA Institute’s statistics, read 8,914 pages of material, study 3,865 equations and take 18 hours of examinations. It is true that studying for it can be a very daunting and time consuming task. But if you are really interested in it (and I am not here trying to convince you to become a CFA charterholder – although I think it is a great thing to do if you are passionate about finance), I think you are going to get a lot out of this episode.

For the full show notes go to: http://www.thewallstreetlab.com/ 

I have been asked many times over the years about tips and tricks on how to improve your chances of passing the CFA exams. So, in this special episode in which we decided to be the ones doing all the talking, Luke and I put together a list 18 points that may improve your chances of being more successful in studying for the CFA exams. I must say that the combination of the points shared during this podcast made a huge difference in my studying attitude and I like to think they have positively influenced my results. Please note, however, that these are tactics that have worked well for me, and may not work so well for others, so pick whatever idea you like most and try to implement it to your mindset.

Also, here is a spoiler alert – if you are looking for tactics and/or ideas on how to tackle specific CFA curriculum material, you will not find any of it here. There are plenty of resources online for that.

If you listened to the episode and still have any questions, feel free to send us an e-mail at contact@thewallstreetlab.com and we will do our best to answer any questions you may have.

Also, while we are at it, If the interview was valuable to you, make sure to take a few seconds to leave us a 5-Star review on iTunes.

Stay tuned!

Luke & Leo

Ian Morgan is a former Managing Director at Société Générale who, after over 20 years as an investment banker, decided to become an entrepreneur in order to follow his passion. He is now an  executive coach who provides a tailored coaching service designed specifically for finance industry professionals, in the fields of leadership, career management and interviewing. He is passionate about helping individuals reach new levels of achievement and performance.

for the full show notes go to: http://www.thewallstreetlab.com/ 

If the interview was valuable to you, make sure to take a few seconds to leave us a 5-Star review on iTunes.

[5:00] Ian’s background and all the projects he is involved with at the moment

[6:30] What made Ian quit his job as a Managing Director at a large Investment Bank to start running his own business.

[8:45] Ian describes his experience in resigning from his position as an MD and what the first day of running his own business felt like.

[11:15] What do successful candidates do that unsuccessful candidates generally do not?

[15:00] Cover letter writing strategies

[16:50] Ian shares his thought on networking best practices

[18:30] Practical skills for the job hunt if you did not major in business and finance.

[21:40] Is it too late to start a career in investment banking if you are in your late 20’s / early 30’s?

[23:50] Understanding the fact that interviewers also have cognitive biases and use that to our advantage during an interview

[25:50] The danger of trying to sound smarter that you really are during an interview

[27:50] Is it ok to answer an interview question with “I don’t know”?

[29:50] How much is too much when it comes to preparing for an interview?

[31:50] How do I accelerate my career at an investment bank, once I have a foot in the door?

[34:20] The performance formula

[36:50] Daily routines and habits that can help you become more productive at work

[41:30] Ways to avoid distractions at work

[44:10] The importance of reading; Ian’s book recommendations

[47:50] The importance of a “glass half-full” attitude

[49:10] Where you can find out more about Ian Morgan’s work

Stay tuned!

Luke & Leo

Alexander Doll is the CEO of Barclays Germany and the Head of Banking for Germany, Austria and Switzerland. Prior to his role at Barclays, Mr. Doll served as a Managing Director of Financial Advisory Business at Lazard.  Mr. Doll joined Lazard after eight years with UBS. His previous experience also includes working for Lehman Brothers in New York and Frankfurt.

For the full show notes please go to: http://www.thewallstreetlab.com/

Have you asked yourself what the best-case scenario for your career would be? I mean, if everything goes extremely well – you get along with your colleagues, you become a well-known and recognized expert in your field, you are being nicely rewarded financially for what you do - what would that look like for you? Will you be a CEO of a company? Or perhaps a successful investor or run your own business?

Regardless of what your answer is, there is one thing we can agree on - to get there, you are going to work extremely hard at it. You must master multiple skills, not only on the technical side of your craft, but also your interpersonal abilities. And, as we have heard from so many previous guests on our podcast, you are going to have to truly love what you do – “do it for the love of the game”, as Steven Gerbel said.

There is one thing that all guests on our show have in common – they have achieved a level of “success” that most of us can only dream of. We believe that, whenever you have a chance to talk to someone who has “been there”, regardless of the field they are in, we should all stop and listen, as we all stand to learn something new from them.

In fact, there is nothing stopping any of us from finding someone we admire and asking for 30 minutes of their attention. These overachievers are usually genuinely nice people who are more than willing to share their wisdom with eager souls looking to grow in their careers. This is exactly what Luke and I do with our interviews – the only difference is that we bring our audio recorder with us. Maybe all you are missing is an audio recorder!

Today is one of those days when we tell ourselves – “we are so glad to have recorded this”. In this wide-ranging conversation, you will get a glimpse at what it is like to be the regional CEO of a global investment bank. You will soon realize that you cannot climb the corporate later at an investment bank if you are not both good with the numbers, but most importantly, good with clients. Mr. Doll also tells us the differences between the M&A markets in Europe vs. the US, what he looks at when interviewing job candidates, and much more.

And now to the show notes!

• 1:40 How Mr Doll explains what he does
• 2:30 The story of how Mr doll started out in finance
• 04:45 How does Mr Doll's typical day look like
• 06:25 current developments in the M&A markets
• 07:50 differences between the investment banking environment in US and EU
• 09:54 What is the most important aspect when analysing an M&A deal?
• 11:40 Specialization, industry experts and their role in investment banking
• 12:55 What has changed the most since Mr Doll started out in investment banking?
• 14:30 How does Mr Doll deal with the information overload
• 16:20 News outlets that Mr Doll follows
• 16:50 Three pieces of advice to the younger self
• 18:50 Favourite mistake
• 19:20 A person who shaped Mr Dolls life
• 20:25 on mentorship
• 21:50 on importance of education and designations
• 23:00 Outside of work what takes the majority of your time?
• 24:50 If you could… What book would you make employees at your company read?
• 25:25 Daily Routines?
• 26:02 What questions would you ask in a job interview?
• 26:30 What is something that you believe to be true that most people do not believe to be true?
• 28:00 Is there anything you would like to leave our audience with?

If the interview was valuable to you, make sure to take a few seconds to leave us a 5-Star review on iTunes.

Stay tuned!

Luke & Leo

P.S: Our next episode will come out on March 6th, in which we cover the topic of interview preparation and career development with Ian Morgan, a former Managing Director of Société Générale turned executive coach focused on helping professionals succeed in the financial services industry.

Dr. Thomas Bloch is the Co-Founder and Co-CEO of Vaamo, a leading German Robo-Advisory platform. Prior to founding an asset management fintech Dr. Bloch has worked in investment banking for J.P. Morgan for almost 9 years. This unique set of experiences makes our today’s guest an amazing conversation partner as he shares valuable insights as seen from both sides of the table.

In our conversation, we jump from topic as we discuss the history of Vaamo as well as the current fintech environment and the struggles of founding a financial startup. We also get very deep into the way a Robo-advisor company operates and what is required to succeed in this field. For anyone who is planning on founding a financial startup this is a must-listen.

For the full show notes and to sign up for our newsletter go to: www.thewallstreetlab.com 

And now to the show notes:

• 2:00 How does Dr. Bloch explain what he does
• 3:00 Professional background and the story of Vaamo
• 06:50 How did the idea for Vaamo come along?
• 09:00 How was the switch from investment banking to the Fintech space?
• 10:00 Typical day?
• 11:00 Fintech impact on banking
• 13:15 Fintech business environment in Europe in comparison to the US and Asia
• 16:04 What is a Robo-Advisor?
• 19:00 Should I purchase S&P500 or give my money to Vaamo?
• 20:50 Typical customer risk profile questions
• 22:35 Human role in Robo-Advisors
• 23:50 Strategies behind Robo-Advisor investments
• 28:20 The biggest problems Dr.Bloch ran into when launching Vaamo
• 32:10 Best method of obtaining capital for a financial business and how did Vaamo do it?
• 33:10 What is Dr.Bloch’s favourite fintech?
• 34:40 Brexit effect on the startup/finance industry in Frankfurt?
• 36:00 What pieces of advice would Dr.Bloch give to himself when starting Vaamo?
• 37:40 Contact
• 38:05 What would you like to leave our audience with?

As always, if you like what you hear, make sure to sign up to our newsletter and share the podcast with anyone you think might benefit from the information. And, if you want to be really cool, please leave us a 5-Star review on iTunes. 

www.thewallstreetlab.com

The next episode will come out on March 23th, in which we interview Alexander Doll, the CEO of Barclays Germany and the Head of Banking for the DACH region! Stay tuned!

Steven Gerbel is the Founder and Chief Investment Officer at Chicago Capital Management, a US-based merger arbitrage hedge fund. Steven has over 20 years of experience in hedge funds focused on merger arbitrage and convertible arbitrage markets. Prior to founding Chicago Capital Management, Steven was a general partner at First Capital Management LP, a Chicago-based hedge fund focused on merger and convertible arbitrage, value investing, and distressed markets. Prior to this, Steven traded commodities on the Mid-American Commodities Exchange at the Chicago Board of Trade. He holds a bachelor of science in economics degree from DePaul University.

For the full Show notes go to: http://www.thewallstreetlab.com/episode-07-steven-gerbel-merger-arbitrage-hedge-fund-investing/

In this wide ranging conversation, Steve shares some valuable information for those who aspire to become a hedge fund manager. We touched on a variety of topics, such as the current state of the merger arbitrage industry in the US. Here is how he explained why he believes the merger arb market is bullish:

“For years, merger arb spreads have been effectively priced at three times the risk free rate. And with interest rates going down, our spreads have been contracted and now with interest rates seeming to have bottomed here in the United states, that will cause our profit margin to expend at a rate of three, an if we get some inflation on top of that and an expanding economy, there could be a great wave of merger arb transactions coming in the very near future”

As a manager that focuses on mergers in the financial sector, Steven explained in a very simplistic way the reason why he thinks there will be a wave of mergers in the banking sector in the foreseeable future:

“Why do you we have just under 8000 banks in the United States? If you walk down the street in New York, you see banks in almost every corner in expensive real estate. It just doesn’t make sense. In this electronic environment, less and less people go to their branch office every day to deposit their checks or to get their cash, we all use ATMs.”

 We talked about his greatest trading loss and what he learned from it:

 “I learned my lesson that despite the fact that we had good information and that our information was ultimately right, if the regulators go against you, you lose”

On the topic hiring, he mentioned how much he values honesty in people, as he believes he can teach anyone the tools they need to succeed as a merger arb trader, but one thing he cannot teach them is honesty:

“I am looking for character; I am not really as hung up on credentials”

Finally, he gives a valuable piece of advice to aspiring hedge fund managers who are just starting out:

“Find the smartest person in the segment of the market they are interested in send them their resume and then I would call them every day and drive them absolutely nuts. Let them know that you are ready to dedicate your life to serving them”

And this is just the tip of the iceberg!

As always, if you like what you hear, make sure to sign up to our newsletter and share the podcast with anyone you think might benefit from the information. And, if you want to be really cool, please leave us a 5-Star review on iTunes.

The next episode will come out on March 9th, in which we interview Dr. Thomas Bloch, the co-founder of the FinTech robo-advisor company Vaamo.

 To follow us go to: www.thewallstreetlab.com 

And now, the show notes:

• 02:37 – What is Merger Arbitrage hedge fund strategy
• 04:40 – Do you speculate on mergers? “Buy and hope”
• 05:40 – What is the biggest risk of merger arbitrage strategy?
• 07:20 – How do you mitigate these risks?
• 08:10 – Mistakes that Steve made on the way
• 09:40 – How Steve became a hedge fund manager
• 11:05 – Analogy of flying a plane and investing in merger arbitrage strategy
• 13:04 – How long does it take from an investment idea to the actual trade happening?
• 14:50 – Current market landscape for merger arbitrage
• 18:40 – Steve on economic business cycles and crisis
• 21:10 – On the increase in inflows of capital across the merger arbitrage strategy
• 24:05 – Liquid alternatives fund
• 24:48 – Restrictions on mutual fund trades and limitations
• 25:25 – What Steve is looking for when looking at a potential candidate
• 29:00 – Piece of advice to graduates
• 31:10 – Who did Steven look up to ?
• 29:50 – 30-second elevator speech
• 34:15 – Steven’s daily routines and on being engaged
• 37:50 – If you don’t love what you are doing you will not make it in the financial markets
• 39:00 – How does Steve deal psychologically with big loses
• 41:50 – Steve’s favorite books
• 43:00 – The most important thing about getting into the hedge fund industry and who you are competing against

Dr. Nelson Lacey, CFA is a professor of finance at the Isenberg School of Management at the University of Massachusetts. He earned his PhD in finance from the Pennsylvania State University and he also holds the CFA charter. Professor Lacey has been at CAIA since its inception. He has been active in working on the program’s curriculum and examination and became a Director of Exams in 2004. Professor Lacey’s academic work has led to over 50 publications in finance and economics. He is also the co-author of the book Modern Corporate Finance: Theory and Practice.

For the full show notes go to: http://www.thewallstreetlab.com/

The love for knowledge is really one of the main reasons why we started this project. We truly believe that education is not an end in itself, but a continuous journey. As Albert Einstein said, “Intellectual growth should commence at birth and cease only at death”.

With that in mind, if you look at the financial services world, there are really dozens of exams you can take in order to learn new things and improve your career prospects. Some of them are less well known, but I bet you will be familiar with a few of them, such as the CFA, the FRM and CAIA, to name a few.

For those of you who don’t know what CAIA is, it stands for Chartered Alternative Investments Analyst. And it is a financial designation that focuses specifically in Alternative Investments, such as structured products, commodities, real estate, private equity and hedge funds.

We had the pleasure of interviewing the Director of Exams at the CAIA Association, Dr. Nelson Lacey. What is interesting about this interview is that it does not only cover the CAIA designation on its own. There is an obvious curiosity, especially amongst undergraduate and graduates students in the field of finance and investing, about the benefit of an Alternative Investments designation. When people ask me about CAIA, I tend to naturally gravitate towards comparing it to the CFA designation. Of course, it makes sense, as everyone in our field knows what it is. And that is exactly what Dr. Lacey did during our interview.

If you are thinking about studying for the CAIA exams or are already a candidate, I really believe this conversation will help you. We cover topics such as the growth in the interest in alternative investments in emerging markets, especially in India and China, we discuss some misconceptions that people have about investing in alternatives, how the CAIA curriculum and exam questions are written, and much more.

And now, the show notes:

• [03:00] How Dr. Lacey’s background and how he got involved with the CAIA Association
• [10:00] Comparison between the CFA and CAIA designations
• [11:00] The process of putting together exam questions
• [12:10] How to study for CAIA
• [13:15] How the CAIA Association comes up with a “passing grade” for each of their exams
• [17:15] The difference in the pool of candidates for CAIA vs. CFA
• [21:30] The growth in awareness of financial designations as a function of the development in domestic financial markets.
• [24:00] What are the main reasons why candidates decide to study for the CAIA designation
• [28:00] Dr. Lacey discusses the examination fees for the CAIA exams
• [31:30] A discussion of the CAIA University partnership and scholarship programs.
• [34:30] A discussion of the “Warren Buffett Bet”
• [40:10] A discussion of a common misconceptions about what alternative investments are supposed to do for a portfolio.

As always, if you like what you hear, make sure to sign up to our newsletter and share the podcast with anyone you think might benefit from the information. And, if you want to be really cool, please leave us a 5-Star review on iTunes.

The next episode will come out on February 23rd, in which we interview Steven Gerbel, a Merger Arbitrage Hedge Fund Manager and founder and president of Chicago Capital Management, LP.

Richard Lucas is an angel investor who is currently involved with close to 20 different companies across a variety of industries. He has made many investments into world-class startups over the years, including deals with startups backed by the likes of Y Combinator. For example, Richard was an early investor in the company Estimote, which won the 2013 Tech Crunch disrupt in the Hardware category. Part of the reason why Richard is such a fascinating person to talk to, is that he is involved in a variety of projects outside of his main work. He is the founder of Cambentrepreneurs, an alumni network for the graduates of Cambridge University and others focusing on entrepreneurship. He is also the license holder of Tedx Kazimierz, which is an independently organized Ted event in Krakow, Poland.

Show notes and links: http://www.thewallstreetlab.com/episode-05-richard-lucas-angel-investing/

Our interview with Richard is jam-packed with really great and practical insights into the mind of someone who, in his own words, thinks about the world in terms of problems and solutions. We touch on some of the red flags he looks for before deciding to invest in a business and the importance of building a company with an exit plan in mind:

“If you don’t build a company with an exit in mind, then you don’t really prepare for it.” Richard Lucas

We also discuss the reasons why he has deliberately decided not to exited any of his business, despite having received offers to sell them:

“I’ve never done an exit and that is not because I have never been offered money for my businesses, but it never seemed sensible to take money at 3x or 4x earnings, because 3 or 4 years later you have got the same amount of money if the company doesn’t fail, and you still own it.” Richard Lucas

We also talk about his early experience as an entrepreneur and the lessons he learned, which he openly shares with us. You - yes, you - are lucky for living in an era of information abundance. Don’t take our word for it:

“The great advantage for listeners now is: you can be 19 and or even 10 and listen to this and think: oh, I won’t make the same mistake as Richard Lucas. I am really jealous of you guys for being able to compress all that knowledge”. Richard Lucas

And this is just the tip of the iceberg!

As always, make sure you share the podcast with anyone you think might benefit from the information. And, if you want to be really cool, please leave us a 5-Star review on iTunes.

The next episode will come out on February 9th, in which we share a great conversation with Dr. Nelson Lacey, the director of exams for the CAIA (Chartered Alternative Investments Analyst) Association.

Stay tuned!

For more information and to subscribe  visit us at: http://www.thewallstreetlab.com/

Time Stamps:

• 02:15 –Richard explains what is it that he does for a living
• 09:20 –On holding onto the companies in the long run and not liquidating angel investments
• 11:10 – Richard’s first angel investment
• 14:40 – Acquisitions – deal structuring
• 15:50 – Opportunities created by Angel investing
• 17:05 – Difficulties of B2B businesses
• 20:35 – How Richard tacks the developments in the markets of his portfolio companies
• 22:35 – Media Richard Follows
• 24:50 – How Richard Screens investment ideas
• 27:35 – Typical process of Angel Investing and how to approach an angel investor?
• 33:20 –Is working for a start-up an easier life than a typical job?
• 38:30 – Importance of experience of working at Start-ups
• 41:20 – The way to agree on the pre-money valuation
• 43:00 – Richard’s favourite portfolio company
• 45:45 – Company culture and focus in a start up
• 47:00 – On financial success of a business
• 50:35 – Richard on giving advice to his younger self
• 57:07 – Other projects Richard is working on
•  

Links:

• Richard’s Blog – www.richardlucas.com
• Project Kazimierz Podcast – www.projectkazimierz.com
• TEDxKazimierz – www.tedxkazimierz.com
• The Alumni Group for Entrepreneurship Support by/for  Cambridge University  Alumni – https://www.alumni.cam.ac.uk/get-involved/find-a-group/cambentrepreneurs
• Krakow Enterprise Mondays – https://www.facebook.com/Krakowenterprisemondays
• Open Coffee Krakow – www.ockrk.co
• Krakow Standup Comedy – www.facebook.com/krakowstandupcomedy
• Wojtek The Soldier Bear – www.facebook.com/groups/wojtekthesoldierbear/
• The Alumni Group for Entrepreneurship Support by/for Winchester College Alumni – https://wintrepreneurs.com/
• The Wojtek Narębski  TEDxKazimierz TEDx talk –  https://youtu.be/WR2kKw3kQEA
• Questions from a potential investor – Richard’s Blog Post – http://richardlucas.com/2013/09/questions-from-a-potential-investor/
• Richard’s Linked in Profile – https://pl.linkedin.com/in/richardhlucas
• Argos Multilingual Blog – http://www.argosmultilingual.com/blog

Some of Richard’s Investments:

• SKK – http://zalamo.com/home/en
• Estimote – http://estimote.com/
• Argos Multilingual – http://www.argosmultilingual.com/
• Unicard . http://www.unicard.pl/
• ISL –  https://isl.pl/
• Syndicate Room – https://www.syndicateroom.com/
• Notatek.pl – https://notatek.pl/
• Vantage Power – http://vantage-power.com/
• Untitled Kingdom – https://untitledkingdom.co/
• Love Krakow – http://lovekrakow.pl/
• Crowdcube – https://www.crowdcube.com/