Expectations for capital markets associates Forum

[Just]

Interested in learning how the responsibilities and expectations for capital markets associates progress as one gets more senior. For example, what are expected out of a 2nd or 3rd year?

Thanks!

[Yugihoe]

Interested too.

[toast and bananas]

I think because CapM work is so lockstep you're just expected to be able to run the deal more and more. Once you've done a handful of debt offerings you've done them all. You're not going to be expected to run an IPO or follow-on offering process alone, but you'll probably be taking first cut at a lot of the documents if not doing so already.

[Anonymous User]

Would things like drafting the entire prospectus and negotiating the UA be expected?

[Anonymous User]

Would things like drafting the entire prospectus and negotiating the UA be expected?

I would say generally no for a 2nd year, probably still in charge of ancillaries at that point, but maybe more responsibility on helping out with the prospectus. For 3rd year, I'd say definitely more responsibility on taking the first cut on the prospectus, UA, etc., but maybe not necessarily going point on all UA negotiations. (At least not in my experience.) I'm sure it depends on how micromanagy your partner is and how trustworthy you are and how much you've learned by 3rd year. I know 3rd years who basically run the entire thing and the partner really just shadows and steps in when necessary, but I also know 3rd years who need a lot more guidance or partners who don't want to relinquish that much control at that point.

[5ky]

I would say for an easy follow-on equity offering or standard debt offering or something, you'll probably see a lot of third year associates leading them (with counsel/partner input). The more advanced the associate becomes, the less involved the counsel/partner will be on helping to negotiate UA, etc.

for a second year, I would say if you have a decent amount of experience, you'd be expected to run the diligence, comfort letter, back-up, legal opinion, closing docs, etc. processes with assistance from a first year. you would report up to the lead associate with questions on those particular workstreams. i would not expect a second year to be primarily in charge of the disclosure document, though they might hold the pen on receiving and inputting changes (different than being the primary reviewer and provider of comments).

[Just]

Thanks to the posters above! Does this vary much across firms?

[Yugihoe]

I would say for an easy follow-on equity offering or standard debt offering or something, you'll probably see a lot of third year associates leading them (with counsel/partner input). The more advanced the associate becomes, the less involved the counsel/partner will be on helping to negotiate UA, etc.

for a second year, I would say if you have a decent amount of experience, you'd be expected to run the diligence, comfort letter, back-up, legal opinion, closing docs, etc. processes with assistance from a first year. you would report up to the lead associate with questions on those particular workstreams. i would not expect a second year to be primarily in charge of the disclosure document, though they might hold the pen on receiving and inputting changes (different than being the primary reviewer and provider of comments).

I think the bolded sounds about right. Would add that as a second year (particularly towards the end of the year) you'll also probably be the one taking the first crack at the UA, security documents, and maybe selected pages of the pro-supp/OM, and reporting up to the senior associate with your drafts or questions. Also, you'll be running the closing process on the day of closing.