Coverage groups in the world of investment banking are specialized teams of experts who focus on a particular industry or sector, offering their insights and advice on various deals and transactions within that specific domain.

Coverage groups best fit individuals with specialized interests in specific industries who aspire to become experts in their chosen fields.

The locations of these coverage groups can vary depending on the geographical concentration of the industry they specialize in. For instance, many energy-focused coverage groups are based in Houston, Texas, given its prominence in the oil and gas sector. This geographical positioning allows these groups to have closer proximity to key industry players and resources, facilitating better industry insights and deal execution.

While a common perception is that coverage groups tend to prioritize client interaction and relationship building, while product groups emphasize technical skills and financial modeling, the reality can differ from one bank to another. Each bank has its unique approach to structuring these groups, depending on their organizational culture and client base.

Typical industry segments covered by these specialized teams include, but are not limited to, the following:

• Healthcare
• Technology, Media, and Telecom (TMT)
• Energy, Utilities & Infrastructure
• Metals & Mining
• Consumer Retail
• Real Estate, Gaming & Lodging (REGAL)
• Public Finance
• Financial Institutions Group (FIG)
• Industrials
• Financial Sponsors

Interview questions for aspiring investment bankers looking to join these coverage groups would heavily depend on the specific industry. For example, a common question in a healthcare-focused interview might be, "How do you value a biotech startup with no revenue?"