Structuring

When large corporate firms are undertaking a transactional deal, such as buy-outs, buy-ins, public or private deals, acquisitions or recapitalisations, mainstream capital loans may not be appropriate. Instead, structured financiers will create a bespoke financial package, where different risks are spread out between different funds and investors. It works a bit like reinsurance, which takes the same approach to spreading risks out. These structuring debt packages may be a combination of derivatives, equities, FX and money market securities. The main aim is to create a truly balanced financial package to address specific transactional requirements. Sales people will spend time with their client to identify exactly what they require. The product team then go about creating a bespoke financial package. Industry knowledge is crucial. Often, practitioners will specialise in a particular business sector, for instance oil and gas, power or telecommunications, or in a type of product such as leveraged finance for buy-outs. Their expertise often means remaining in their chosen sector throughout their career.

Salary

A structurer can expect to earn an annual salary of approximately £45,000 to in excess of £70,000 per annum. This does not include potential bonuses and additional benefits.  Salaries will vary based on employer and location.

• Developing an investment strategy to meet agreed objectives
• Analysing the risk and return profiles within the transaction
• Designing a balanced financial package that meets clients’ needs and is profitableExamining all the issues that may affect a transaction’s outcome, such as changes in commodity prices, international economic and currency influences
• Establishing and maintaining contacts that support the design of structured products
• Monitoring market opportunities and new developments in product structuring
• Ensuring all the regulatory aspects of a transaction have been considered

• Outstanding relationship management skills
• Analytical
• Exceptional mathematical and numerical skills
• Commercial and economic awareness 
• Strong sense of integrity and business ethics
• Business communication and interpersonal skills
• Entrepreneurial instinct
• Motivated, creative and decisive approach to problem solving
• Excellent project management skills
• Flexibility, as significant extended hours may be required during specific negotiations and deals, including weekends and long weekdays 
• Ability to work in a regulated environment and comply with set policies/procedures
• Strong team working skills

Employers will usually expect candidates to quickly acquire knowledge in the following areas through training and relevant professional qualifications: 

• What clients require and how that can be achieved by structuring products
• Techniques of dealing in FX, derivatives and other specialist securities
• Detailed knowledge of particular business sectors
• Working knowledge of marketing and sales techniques applied in financial services 
• Risk analysis and due diligence techniques

Opportunities to enter structuring are aimed at graduates. Junior team members usually enter structuring departments after their graduate rotations, having been talent spotted. A few employers have specific structured finance recruitment schemes. Employers with entry-level graduate programmes will require a 2:1 or first class honours degree in a numerate subject. A large number of entrants increasingly have a Masters or PhD. Employers will specify their own exact academic requirement and subject.  In sales roles you’ll need to be confident and articulate and able to manage client relationships.  A strong track record of achievement, ongoing ambition and appetite for success are also desirable qualities.  Exceptional mathematical ability with the gift of processing numerical information quickly is needed in product development. The ability to recognise and assess risks is essential in both roles.

Professional qualifications that structuring professionals may study include:

• Chartered Institute for Securities & Investment (CISI) Level 3 Certificate in Investments 
• CISI Certificate in Corporate Finance
• CFA Society of the UK Investment Management Certificate (IMC)

These qualifications could lead to studying:

• CISI Diploma
• Chartered Financial Analyst (CFA) qualification (available through CFA UK or by independent study from the CFA Institute) 
• Masters in Business Administration (MBA)

At the very least, most structuring professionals will strive to achieve Chartership or Fellowship from the appropriate professional body.

The structuring of financial products is likely to continue to be a major part of the financial system within increased regulation.  Structurers may specialise in a narrow product band, for example, equities or FX but the role may also be very broad, or in a particular sub-sector. A large appeal of this profession is that within a short time structuring financiers become recognised experts. Structuring teams exist in wholesale banks, investment banks and investment management firms. Teams are usually fairly small – between 5 and 20 people – with ad hoc deal teams being formed under an experienced deal leader for specific transactions. UK-based positions are almost exclusively in London. Globally, structuring jobs exist in all the major financial investment centres.

• CFA Institute
• CFA Society of the UK
• Chartered Institute for Securities and Investment