David Obwaya
Role: Analyst, Blackstone Credit
Other(s): Head of IC at The BLK Foundation
“You still need to understand the fundamental tenets of what the job actually is, but something I’ve noticed as time has gone on is that people now are used to me and now people want to give me work and now people have an expectation that the work is going to meet a threshold of quality and I think that was probably the biggest hurdle. Getting used to the work and getting used to producing at a high level has definitely been the most challenging thing.”
I wish all readers and listeners a warm welcome to a new conversation in the NUFRIENDS Industry series.
Today, we will be spotlighting David Obwaya.
David is a recent graduate of NYU and currently lives in NYC, working as an Analyst at Blackstone Credit. This conversation is filled with so many gems for those in any industry!
An abbreviated version of the conversation is provided below. Enjoy!
Introduction & David’s Background
Elijah: I would love, David, if you just introduce yourself a little bit, sharing anything that you would like for us to know to begin the conversation.
David: I found myself here a couple of years after some of the most tumultuous years of my life. I grew up in Blaine, Minnesota. People graduate high school and usually stick around and do the same thing that your parents did and your grandparents did. But for me, I knew that I didn’t want to stay there.
I got an opportunity to run track and field at NYU and come out to New York I knew this opportunity would only come this once, so I jumped on it. I knew I had some sort of ambition, I didn’t know that it was going to end up being finance or business. The underlying truth of how I got here is that I wanted to take a risk and I did anything in my power to try to figure it out whatever that challenge or obstacle was.
Choosing a College and the Challenges of Decision Making
Elijah: So you’re a senior at Blaine, looking at where to go next. Looking at colleges, what were some of your top choices and how did you break down college enrollment, college application and enrollment decision?
David: You can have all these desires, right? Like I had this desire to leave, explore a different life, but when it comes down to the actual decision, that’s when it becomes a real life choice.
So what I mean by that. I was talking to the NYU coach my senior year. I knew that, with, a certain score on my test and grades I would be able to get into the school. I also was talking to another coach at Fordham University. I knew I had a chance to run there. But it was between those schools at the end of the day and a local college, University of St. Thomas. I could take a chance, go to NYU or Fordham, or I could stay local, go with the very safe option. But yeah, that decision was definitely one of the hardest ones I’ve ever had to make.
Early Moments at NYU and the Freedom of a New City
Elijah: Take me through some of the early moments when you got to NYU.
David: I thought I was going to be homesick, but when I got to NYU and I moved in I realized it’s a blank slate and I had the first day of the rest of my life, that first day of NYU. I think when you get there, I think it’s easy to fall victim to the freedom, especially in a city like New York, where you could do anything with your time. The city was my playground at a very young age.
I had to learn how to be responsible immediately and not take for granted the opportunity again that was right in front of me. So I think I took the first couple of weeks, maybe the first month or two, and maybe maybe just enjoyed that I was there and, had fun in college. But after, some time and after some reflection, I realized that I was there for a purpose. I started joining clubs, I started meeting people. I started reaching out to different people that I saw on LinkedIn.
Elijah: I know going to NYU and being in New York, you’re around so many interesting people. What were some memorable encounters?
David: It’s wild how NYU is filled with such talent. There was this guy in my dorm, an incredible photographer. His passion, even though I wasn’t into photography, inspired me. Then there was another guy in one of my clubs, always sharing detailed ideas about markets and trading. Seeing their passion was refreshing and sometimes caused me to question my own abilities. These interactions reminded me that everyone at NYU is on a unique journey. But these encounters taught me to have faith in what I’m doing and pursue my interests to the fullest.
What I noticed from all of these people is they approached their passions in a way that was authentic to themselves. You can’t really teach somebody that level of commitment to something. So I when reflecting on my own passions and my own desires to get to a certain place, I knew that it had to come from myself and I had to do it in a way that was true to myself.
Elijah: At NYU, what do you feel like was your best class? What did you take away from it?
David: Two classes stand out to me. The first was negotiations. Many see negotiation as a battlefield with a clear winner and loser. But the class highlighted the importance of finding solutions that make everyone feel like they’re part of the win. It taught me that negotiation is about developing trust and uncovering genuine interests to assist others. This paradigm shift in thinking made it one of my favorite classes.
The second class, transformative film, was an unexpected jewel. Housed in the renowned Tisch School of the Arts, this class was led by a teacher whose approach was akin to a spiritual guide. She led each class like a therapy session, emphasizing the healing and transformative power of art. We created art that echoed our emotions, thoughts, and reactions to films we’d watched, making for an intensely personal and evocative experience. This class opened my eyes to a new way of expression, separate from regular logic.
Besides applicability in arts, it shone a light on life and business, showcasing how important it is to understand why people act as they do. Even within the grueling hours of corporate life, it’s vital to hold onto our humanity and individuality. We need to ensure we don’t become mere cogs in the machinery, losing sight of ourselves amidst tasks. Art serves as a reminder to stay connected to the world, expressing our feelings. Art, after all, opens doors to the beauty of life, love, and appreciation for the world – making life truly worth living.
Transitioning into Career Mode
Elijah: You mentioned earlier, you’re heavy involvement in clubs. Of the clubs that you were involved in, which one do you feel like gave you the biggest head start that you needed the most?
David: My exposure to BLK Capital, a student-run hedge fund organization, significantly transformed my perspective about the financial industry. Specifically created to cater to Black students with a deep interest in finance, it gave me a unique chance to navigate the technology sector. Not only did we study, but we also had the chance to present our findings to industry professionals twice a year, a process that honed our skills tremendously. They also organized networking sessions that connected us with the top firms on Wall Street.
This experience proved the belief wrong that the finance industry was merely a white man’s domain with no opportunities for minorities. The club created an environment where racial stereotypes about financial management were debunked head-on. Upperclassmen who had successfully transitioned into the industry and top-level executives who defied the odds despite their skin color were nothing short of inspirational. These mentors were actually eager to give back to the community, opening our eyes to a world of possibilities regardless of our backgrounds. It was through this organization that I gained the confidence and direction needed to take my first step in the finance sector.
Elijah: One of your earliest industry experience came during sophomore year, interning with Goldman in their S&T business, how did that experience help you understand what you wanted to do more?
David: The realm of the financial industry, especially in roles like global markets or sales and trading, harbors a complexity that’s often misconceived. It is simpler than most think it to be. In these roles, I find that much of the day to day tasks revolve around forging ties. They’re about orchestrating interpersonal interactions and merging the interests of two distinct parties into a cohesive centralized platform. To excel in this role, understanding why and how people make decisions becomes paramount. It’s like choreographing a dance of decision making, balancing different needs and wants.
While the role of mediator is indeed fulfilling, I found myself longing for more. I realized I wanted to transition from just being the middleman to becoming the decision maker – the one person who does the independent analysis that steers transactions. I yearned to be on the other side of the phone, wielding the power to determine which particular execution or security would be the optimal choice for a successful transaction.
Elijah: What steps did you go about taking to make that pivot?
David: I decided to start developing my network actively, as the first step to comprehending the financial industry more profoundly. My interest was piqued specifically by those in the buy-side roles – these are the individuals, the investors and portfolio managers who are on the other side of an investment transaction, directly involved in acquisition decisions. I saw value in understanding their motivations, their strategies, their investment mindset. It was about understanding what made them successful and learning from their experiences.
This was not just about gaining practical industry insights; it was part of my larger aspiration. I aspired to develop my own distinct investment philosophy, something that would guide my own financial decisions and strategies. To help cultivate this philosophy, I started immersing myself in books, particularly those authored by the classics of investment theory. Names like Warren Buffett, Charlie Munger, and Seth Klarman take the center stage here – they are investors whose wisdom has been distilled into their writings, sharing hard-earned investment philosophies that have withstood the tests of economic shifts and the relentless passage of time.
So I started there and I was lucky enough to interview with Blackstone.
Elijah: What are some key differences you noticed between Goldman Sachs and Blackstone?
David: Across different companies, one thread remains unwavering, the kind of people you find yourself working with. These individuals are driven, exceptionally intelligent, and incredibly engaging. Their sheer determination and relentless pursuit of excellence define the impressive working dynamics of these environments, providing a strong momentum that helps drive you forward. However, the actual work environment can greatly differ.
There’s Goldman Sachs – a place where, with phones glued to their ears, everyone’s consistently orchestrating deals, fostering relationships, and relentlessly pushing to drive up transaction volumes. This palpable sense of competition and the pursuit of success is a testament to their ‘win-at-all-costs’ attitude. However, on the flip side, there exist quieter environments.
Here, a deep dive into data analysis, a careful validation of assumptions and a meticulous approach to strategic planning take precedence. Individuals find themselves immersed in extensive critical analyses, daring them to challenge and refine their thought processes continuously. And when it comes to making an investment decision, it’s a whole different ball game. It’s a process that involves a thorough ‘investment committee process’. With each step, the pressure mounts, intensifying scrutiny surrounds every detail and decision. To those new to this process, it’s an enormously daunting, stress-inducing experience, where your profound analysis not only needs to shine but prove its merit within a crucible of critique.
Elijah: What shifts have you noticed in terms of how people treat you and in terms of expectations going from intern to now full-time?
David: When you’re an intern, the whole experience essentially acts as a prolonged, yet comprehensive 10-week evaluation. At this time, all eyes are on you – assessing not only your intellectual capability and enthusiasm to be there, but also closely charting your continuous growth and improvement. To succeed, you must go above and beyond to demonstrate these virtues.
Once you transition to full-time, it feels like you’ve become an integrated part of the team, where the structure becomes less formal and expectations higher. Initially, you’re supported, as if there were training wheels, helping you to understand the core principles of your role. But as time progresses, as you build trust and rapport with your team, it’s as if the training wheels are taken off. Colleagues grow accustomed to you, expecting your work to meet a certain standard of quality and that’s a significant leap to make. In this role, there’s no set schedule to abide by. Your time is yours to manage, making what you can of your role. This can be intimidating, a bit scary even, but it’s balanced out by the excitement and the sense of emboldenment and fulfillment in your work. These challenging and dynamic aspects are the reasons one elects to commence such a career journey.
Elijah: If you could distill your day to day down to the core, what is it you do?
David: Indeed, what I primarily focus on in my job is financial analysis. To put it simply, it’s all about dissecting the businesses through their financial statements, which frequently requires modeling on Excel. I study different companies, their revenue generation, and money flow and over time, you start recognizing the financial patterns that a certain type of business, like a software business, should exhibit.
Expanding on that, my role isn’t just confined to finances. My larger goal is to truly comprehend how businesses work from all aspects. This comprehension isn’t solely dependent on figures. Alongside quantitative financial analysis, there’s an equal emphasis on qualitative thinking and research. Making sense of the industry I’m studying, its trends, its major players, and how it’s structured is of utmost importance. I’ll share a relatable instance.
Early on, I worked on a deal in the wealth management industry. Now, I was adept at scrutinizing financial statements and building a model, but comprehending the actual business mechanics of wealth management? That required an extensive amount of reading and research. In fact, this is the essence of our job; understanding businesses at their core.
Taking a step back, the job also entails defending our research, shaping it into a compelling narrative and presenting those findings to others. We spend substantial time in creating presentations that communicate our research, our understanding. We engage in discussions with individuals, both within and outside of Blackstone, sharing our viewpoints and stories as they evolve. Ultimately, all this works up to that one big day where we present our final analysis to the investment committee. All in all, our day-to-day work starts with understanding the business, delves deep into financial modeling, and leads to socializing our ideas till the final presentation.
Elijah: You’re churning through a lot of information. How do you weed out what’s important and what’s not?
David: Originally, I placed my trust in the power of numbers and thought that a compelling quantitative analysis would be the ultimate tool for persuasion. It seemed to me that the numbers are transparent and self-explanatory. However, I’ve realized that this isn’t the case. The true challenge lays not just in presenting the numbers, but in interpreting and using them strategically to tell a convincing story. While we can collect numerous data points, it’s how we connect and interpret these points that really matter. Without creating connections and identifying the significant points, we risk missing the larger picture – and all our data collection becomes meaningless. This task demands considerable work and poses as my current biggest challenge.
Developing a compelling narrative for our investment thesis and understanding the intricacies of different businesses isn’t an easy task. It calls for engaging conversations with seasoned individuals and developing the ability to recognize patterns within the data. This combination of skills lends to a richer comprehension of our data.
Career Goals and Principles for Success
Elijah: Have a few more questions for you. Firstly, being at the sunrise of your career, were there surprises or unforeseen aspects you faced? Secondly, as you’re looking ahead, has anything within your strategic approach to your career shifted?
David: As someone fresh on the scene, I came in starry-eyed, in awe of the people I was about to work with. In my mind, they were the epitome of innate talent, effortlessly demonstrating mastery in everything they did. But as I spent more time at the company, I saw a different picture unfolding. The high-level of skill these people demonstrated was not some magical gift — it was hard-earned. They had dedicated themselves to the job, unrelenting, laboring away for a considerable amount of time. Natural skill indeed has a role in it, but I came to realize that with a sound understanding of the fundamentals, unwavering determination, and the right exposure and timing, nearly anyone could reach these heights. This revelation, being new to the industry myself, was empowering, a significant induction into the inner workings of success.
Not long ago, one of my colleagues and I were talking about how reputations are built, how they endure. It was then that I understood the power of significant achievements. Those notable victories are what leave a lasting impression that people recall for a long time. This conversation underscored for me the importance of coming out of the gate strong and high, leaving no stone unturned from the very start. More than wanting to be known as technically sound, or as a person whom everyone loves to work with, I seek to make a meaningful impact on the organization. That means coming up with solid investment ideas, ensuring their successful implementation, and performing other job tasks with utmost dedication. After all, it’s the major contributions to the organization for which we are recognized and rewarded. This realization has added considerable depth to my approach towards my job and reshaped the way I view my responsibilities.
Elijah: How do you differentiate yourself from everybody else? Everyone’s really smart. Everyone’s really hardworking. What makes David special from everyone else?
David: Similar to art, where we express our individuality, it’s integral to remain true to our unique selves. If we lose that connection, we risk getting swallowed by the crowd’s average. This principle has been directly applicable to my job. Often, I see many people subscribing to a conventional viewpoint or inspecting an industry from a standard perspective. While it’s crucial to comprehend their viewpoint, I find value in seeking alternative insights, looking into elements that others might overlook, in order to form a distinct stance. Especially for a first-year analyst, it’s easy to compromise our discernment, taking what others say as the gospel truth, accepting the existing process, or a situation as the default. This tendency isn’t limited to the starting stages of the career, it perpetuates throughout.
People tend to accept things done in a certain way just because that’s how it’s been. But, being relatively new, we possess fresh eyes, the ability to see things untouched by habitual patterns. We shouldn’t fear to push back against norms that seem incongruous, should aspire to test uncharted waters, attempt new initiatives, and identify fresh opportunities for success. Having not been in the system for long, our perceptions are not yet fully embedded with pre-existing norms.
This job has taught me that while everyone’s smart and logical, trained at the best schools, and equipped with excellent training, differing opinions can exist amongst equally skilled individuals. These disagreements form the crux of intellectual expansion- they underline the value of our perspective, our unique approach. So, ultimately, not being afraid to uphold your viewpoint, to disagree and challenge norms, is my answer.
Elijah: Being where you are right now where would you like to see David in the next 2 to 3 years? And then where would you like to see David in the next 10 to 15 years?
David: During my time in college, I was known for being a big dreamer with grand ambitions for the long-term future. I was committed to taking steps in the short-term that I believed would propel me towards those larger objectives. However, starting my career has brought a new perspective showing the importance of being dedicated and ready to perform each day, with no exceptions. Hence, my short-term focus within the next six months is to deeply instill certain vital skills that I believe will be crucial for my success.
Two key areas I want to work on are improving my attention to detail and gaining confidence in voicing my opinion without hesitation. I intend to be exceptionally thorough in my work, leaving no room for error and ensuring a result I can stand by. Additionally, I want to contribute constructively to discussions, believing that my opinions hold value. Sharing my thoughts, I believe, will foster my personal growth and create a more dynamic workplace. When it comes to long-term goals, they naturally evolve over time. Currently, my vision is to be in a position where I can aid people to succeed.
This desire is specific to Africa – a place I have recently returned from. I wish to induce a real, palpable effect within these communities whether it would be by supporting infrastructural projects such as construction in rural Kenya or even possibly collaborating with an international entity like the UN to help them meet their sustainable development goals for the continent. Moreover, I envision owning an enterprise here in the future. While one possibility could be an investment fund, I am open to other business ideas as well. Despite these goals seeming lofty and vague, I am hopeful to realize them. I strongly believe that diligently working on my identified short-term goals will ultimately shape me into the person capable of achieving these long-term aspirations.
Elijah: Two final questions for you. What are some principles that you adhere to?
David: One principle dear to me is the consistent act of showing sincere appreciation. We often express deep love towards those who have passed, forgetting to do the same for those who are still with us. It was in the club Scholars Of Finance where we had a unique session that solidified this principle for me. We were asked to imagine attending our own funerals and ponder over what people might say about us. This activity struck me profoundly. It made me realize the importance of hearing those appreciations when we can. Everyone desires to feel loved and valued regularly, not only in eulogies. So why not make that a practice in our everyday life? Moreover, applying this in any environment, especially in business, has massive benefits. People notice and are drawn towards you. Your network strengthens, friendships get better, family bonds become deeper. All of these not only add to your personal life but also make you a more effective business person. I, therefore, try to live by this principle as much as possible.
Advice for NUFRIENDS & Closing Remarks
Elijah: I love that bro. Lastly, what are some tips that you have for NUFRIENDS looking to break into this industry?
David: You know, breaking the ice with people can feel like scaling a mountain when you’re just starting out. I sure can relate to that. My first real conversation was this NYU alum. He was just a few years out of the graduation gate and I admit, I was mighty perplexed about what he actually did for a living, somewhat ironic, considering it’s pretty close to what I’m doing right now. I mean, I was probably asking the silliest questions under the sun and my nerves were close to shattering, but I hung in there. And guess what, the second attempt was slightly less mortifying. By the third round, I didn’t feel like I was stepping onto a battlefield anymore. With each subsequent discussion, I felt a bit of the tension ebbing away. Learning, growing, finally extracting value.
So here’s the nugget of wisdom from my experience: communication can feel like a massive hurdle for people trying to get their foot in the professional door. Being able to strike a personal chord with your interviewers, networking, connecting – that’s an important skill. So, for all aspiring professionals, pull your weight early, keep the conversations flowing. You’ll be amazed to see how it shapes your confidence and soft skills.
Elijah: Man, there was so much that you shared through this conversation and I really am appreciative to have learned about your experience a bit more in depth. Thank you for your time!
David,
Welcome to the Industry.
Welcome to NUFRIENDS.
