I (an MBA from a premier B-school) recently got offer for internship from World Bank as financial policy analyst in infrastructure, in other words project finance. Would experts consider this a good field?
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Where can I see myself in 3-5 years from now in terms of opportunities, roles, and salary? Based in Singapore, with educational experience in East Asia, and work experience in India and Europe. New to field of finance & economics in terms of work experience, but have Masters in Economics, and Dual MBA from top B-Schools.
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Answer:
Excellent field. Milbank's website describes the work, "From a first-of-its-kind toll road in Latin America, to a wireless telecom build-out in Southeast Asia to the largest wind and solar farms in the world..." Harvard ranks http://www.people.hbs.edu/besty/projfinportal/lawfirms.htm. Top U.S. firms are Latham & Watkins and Milbank Tweed (measured in $$) and Shearman and Milbank Tweed (quantity). (The difference b/t law firms in the U.S. and the U.K. is salary. U.S. firms pay much more.) Milbank, which appears on both lists, reports, "Over the past three years, Milbank has closed more than 140 project financings, which raised more than $125 billion for infrastructure projects worldwide." I've actually talked with Project Finance lawyers at BigLaw firms in NYC. Many do the work for purely practical reasons: They have a huge law school bill to pay back. But some do it because they don't like the concept of government officials putting their countries into a deep credit hole (with much of this incoming money going into their personal bank accounts, outside the country) and selling the resources. After all, who needs roads if no one has a car? Remember John Perkins's Confessions of an Economic Hit Man? That's Project Finance. Law firms watch their Project Finance rankings closely. There is a huge amount of money flowing cross-border. Everybody wants to get in on the action. http://www.thelawyer.com/news/practice-areas/banking-and-finance-news/clifford-chance-drops-as-ao-soars-in-project-finance-global-rankings/3017760.article http://www.allenovery.com/news/en-gb/articles/Pages/PEBBLE-Project-finance-made-easy-for-institutional-investors.aspx http://www.milbank.com/news/milbank-represents-international-lenders-in-378-million.html Anyone who is qualified to work in this lucrative, growing field has nowhere to go but down.
Catherine Beale at Quora Visit the source
Other answers
The title does not sound like you will be actually originating or executing the transactions. If you could please share more as far as what will be your responsibilities as a financial policy analyst.Project finance is a lot of detailed work, you can end up working M&A hours, but pay will be no where close. The work itself is interesting as you could be working on a toll road in Australia and then jump into an airport lets say in Bangkok (there is a suit of commercial contracts, term sheet/finance docs negotiation, financial modelling, credit analysis, syndication, regulatory framework, tax, comprehensive set of due diligence and so on to look at).I would also suggest to have a look what proportion of overall financing raised in the world corresponds to project financing, eg. versus DCM, corporate financing, acquisition financing, leveraged financing, to get a sense of proportion.Salary wise - please contact recruiters such as Michael Page, who do surveys and those tend to be quite accurate. In project finance, you could be working for (1) commercial bank (a. advisory; b. lending (new deals); c. mid-office (agency, portfolio management - in some banks lending team has to do all). d. credit/risk (in certain banks they look after portfolio); (2) multilateral (i.e. WB, IFC, CDC, EBRD) or ECAs (you need to have the right nationality) or government agency (e.g. if a country uses PPPs frequently); (3) developer/sponsor (in-house role; typically if they are frequent user of PF, otherwise they will hire a financial adviser); (4) specialised boutiques/consultancies helping sponsors to structure and raise funding and (5) big fours accountancy firms (in certain transactions regulatory policy, tax and accounting aspects are main drivers). It is a balance of interesting/hours/pay/investment into future (i.e. acquiring transferable skills).Title progression in a European bank (I stress European here): 2-3 years as an Analyst (or Manager) 2-3 years as an Associate 2-5 years as a VP or Associate Director (this could be a while as transition into a director a tough one, i.e. technical into sales/origination) Director - (it can be a while, could be a head of team) (in certain banks it is a VP or Senior VP) [Senior/Executive Director] - (it can be a while; and some banks do not have it all) Managing Director (typically a head of team) Titles at multilaterals will differ, e.g. (junior) investment officer, principal banker, senior banker, etc, director in fact could be MD.
Anonymous
Hello anonymous, I am a chartered accountant from India. I want to work in organisations like world Bank, Asian development Bank, IMF, UN etc.. how I get placed in these organisations ? Will they even consider my resume since I am a chartered accountant who is not so much in economics in my resume though I like it?
Anonymous
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