Learn Technicals for Investment Banking, Private Equity and Hedge Funds
It can be really difficult when it comes to learning the finance *technicals for investment banking, private equity and hedge funds.
Even for students who are majoring in finance, we’ve found through our consulting services that many candidates struggle with the technicals. Learning finance can be even more difficult for liberal arts majors who don’t have as much exposure to finance.
Let’s take a look at some different ways to learn technicals.
The Different Ways to Learn Technicals
There are the popular interview question guides that’ll tell what the right answers are for different questions. The key issue with these guides is that while they tell you what to say, they lack a deeper context. Interviewers can switch things up a bit and candidates would be stuck. These guides often leave many logical gaps in between questions and you don’t really understand how everything ties together into the big picture. As such, you often lack a conceptual understanding of the finance techncials.
There are also the financial modeling bootcamps that that cost $3,000-5,000 for a few days where you learn how to build models in a class setting. Because of the agenda that bootcamp instructors have to follow, you often don’t get the personalized attention you need to go over areas where you might be stuck on. And more importantly, these are bootcamps for financial modeling. Most of the focus is centered around the mechanics of executing the analysis as opposed to developing a strong conceptual understanding. Did we mention the staggering price tag?
And finally, there are the online courses. These online courses do a much better job establishing both the conceptual understanding of finance as well as the mechanical understanding of how to actually perform the analysis. But they’re often too voluminous requiring an extensive amount of time to complete and usually centered around financial modeling. The implication here is that lots of these financial modeling granularities you spend time learning are preparation for on the job. But not for interviews. Nobody’s going to dive into the implications of having circularities in sensitivity tables.
Here at 10X, we believe the best solution to learn the technicals for investment banking, private equity and hedge funds is through Lumovest.
Developed by former Goldman Sachs investment banker who worked at the world’s leading buyside investment firms, Lumovest provides online courses that teach you how to analyze equity (aka “stock”) investments like how it’s done in private equity and hedge funds. The Lumovest team is not only Goldman-trained, but has also worked at the world’s leading private equity firms and hedge funds and was responsible for investments worth over US$8 billion, while generating fantastic investment returns.
Lumovest’s online courses center around investing and they explain concepts from an investor’s perspective. This is very unique and we’re not aware of any other courses or firms that has the same level of investing experience as Lumovest.
By now, someone may ask: “Well, I’m trying to learn finance technicals. I can see how it’s related to private equity and hedge funds. But what does stock investing have to do with investment banking?”
Investment banking is basically a brokerage service that connects parties with money looking to make investments (usually in stocks) with parties looking for money. The entire job revolves around analyzing the attractiveness of investment opportunities!
For IB / PE / HF, candidates need to have a solid grasp of accounting, financial statements and corporate valuation. That doesn’t change. What changes is the fact that IB firms will test on M&A + LBO + DCF, PE firms will test more on LBO, and HFs will test more on DCF. But the underlying knowledge of accounting, financial statements and corporate valuation for all 3 is the same.
In other words, the finance technicals are largely the same for investment banking as it is for private equity and hedge funds. Except the PE and HF jobs have a greater emphasis on ability to think like an investor. That and you work less and get paid more.
So the technical knowledge you’ll learn from Lumovest is directly applicable in interviews for all 3 types of jobs.
Why We Think Lumovest is the Best
Having been through various online courses and in-person training sessions during our recruiting days, we believe Lumovest is the best online course to learn technicals for your interview. It’s our favorite and here’s why.
Differentiated Content: Lumovest has a highly differentiated content. First, they teach you the knowledge that the top firms teach their analysts. Second, it has a structured curriculum so you learn the right things in the right order. Third, the curriculum is modeled after the actual thought process of what professionals would think through when they analyze an investment, so it’s very practical. And finally, they emphasize on showing the logical flow behind everything. You’ll learn why things are the way they are due to the logic behind them and how everything ties together into the big picture. Lumovest breaks complex concepts down into digestible formats and explain them in simple English, which makes it really easy to understand.
This is super important. We think Lumovest does an incredibly great job connecting the dots together and providing students with a coherent understanding of the logical flow behind technicals. It adds “sense” to an otherwise unfamiliar topic full of industry jargons. To be honest, even us with years of investment banking and buyside experience had a few “Aha!” moments going through Lumovest’s courses.
Learning Model: Lumovest has a really engaging learning model. All of Lumovest’s courses are online. It’s 100% digital, so you can set your own pace and learn whenever you want and wherever you are. Each course consists of lessons, worksheets and quizzes. Students watch the video lessons to learn about the concept and how to perform a certain analysis. Lumovest believes the best way to learn is by doing the analysis alongside them, so they also provide complementary worksheets that you can download and follow along. Then, once you’ve learned how to perform the analysis, you can take quizzes, which sometimes mirror interview technical questions, to help you retain what you learned. You can also ask questions and someone from the company’s Customer Support team will help you.
Price Tag: You can start learning with Lumovest for less than what you probably spend on a Friday night. The company offers two subscription plans: $30 / Month or $300 / Year. When we asked them why they made it a subscription plan as opposed to a one-time sale, they explained that through a monthly subscription, they can make it super affordable for students to learn. The other courses cost hundreds of dollars and bootcamps cost thousands. They want to democratize the knowledge and are sensitive to students who are often limited in cash. So by making it a subscription model as opposed to a life-time sale model, users can start learning the knowledge for as low as $30. At the same time, it encourages users to actually learn the materials so they don’t have to be charged month after month. This helps combat procrastination and makes learning more effective.
So that’s why we’re a big fan of Lumovest: higher quality at a lower cost.
Who Lumovest is For (and Who It’s Not for)
Now let’s talk about who we think would benefit the most from using Lumovest.
For undergraduate and graduate students recruiting for investment banking, private equity, hedge funds and even equity research, Lumovest is perfect. Their Foundation curriculum starts at the very beginning, assuming the student has 0 knowledge of finance, and builds up from there. So it’s perfect for beginners.
For management consultants or Big 4 employees recruiting for lateral investment banking or for pre-MBA private equity or hedge funds, Lumovest is also the perfect fit. The curriculum is especially relevant if you’re recruiting for an Investment Analyst role at fundamentals-driven hedge funds (long short equity, market neutral, event-driven or activist).
For investment banking analysts without a strong technical background, Lumovest is a great place to step up your technicals knowledge quickly and effectively. This is an especially great place to brush up if you’re not sure how everything ties together.
That being said, we’re not recommending Lumovest to current and former investment banking analysts with a strong technical background at this point. That’s because Lumovest has only thus far released Foundation curriculum, which is designed to bring beginners to the knowledge level similar to that of Investment Banking Analysts. The company is currently developing its Advanced curriculum, which we anticipate will be much more meaningful for investment banking analysts recruiting for private equity and hedge funds.
We’re not comfortable recommending something we haven’t reviewed yet, so we’re holding off on this for now.
Start Learning with Lumovest Today
So to wrap up, Lumovest is a great place to learn technicals for your interviews. You’ll learn how to analyze investments like professionals at top investment banks, private equity firms and hedge funds. At a price for as low as $30. Sign up today at www.lumovest.com.
*When we say technicals here, we’re referring to the financial knowledge underpinning fundamental analysis. We’re not talking about technical analysis.