Having graduated from Sofia University in her home country of Bulgaria with a BSc in Economics in 2012, Diana Naydenova worked briefly within corporate banking before opting to move to the UK to undertake postgraduate study at the London School of Economics and Political Science (LSE). Here she decided to study finance with the aim of returning to Bulgaria upon graduating in order to work within the financial sector.
Now a graduate of LSE’s Masters in Finance and Private Equity program, Naydenova shares her experience and advice for others, including her motivations for deciding to study finance at graduate level, how the program worked, and how the London School of Economics (LSE) helped her develop the skills she’ll now use to further her career.
Why did you decide to study finance and private equity at graduate school?
In my last role within corporate banking, I would meet clients from various economic sectors and discuss with them the opportunities for financial management. The role convinced me that specialized knowledge in the area of financial analysis, risk and investment management is vital to understanding not only the consequences, but also the causes of a particular business case. I believe that good financial expertise is a prerequisite for successful economic performance.
The skills a Masters in Finance provides are applicable not only in a professional setting, but also in a number of daily life situations, since they give you the mind-set to evaluate and analyze opportunities and challenges when coming to all sorts of decisions. I also find the dynamic nature of the financial sector extremely interesting and compelling because of its diversity and prospects.
Why did you choose to specialize in private equity?
Since private equity is a relatively young and extremely narrow business area, available data and deal-flow information is limited and therefore extremely difficult to obtain. This course was helpful in that it laid emphasis on the specifics of private equity deals, and through discussions of particular business cases I was able to observe and analyze successes as well as failures of various investors in the industry. What is more, guest lecturers who actually participated in the specific deal often attended class in order to answer questions not raised in the case.
I am interested in private equity because I enjoy the complicated structure of the deals, the high-risk profile of the parties involved and the prospects of supporting ambitious entrepreneurs or taking large companies private for further development.
Why did you choose the London School of Economics (LSE) for your Masters in Finance?
First of all, the London School of Economics is the only university that offers a Masters in Finance and Private Equity degree and therefore has a lot of connections with professionals in this industry. Seminars with field professionals were conducted on a weekly basis, giving me and my peers the chance to receive information on current trends and career opportunities.
LSE provides a great environment of culture, learning, and entertainment and is a top graduate school for finance, not only because of the range of courses, but also because of its close proximity to the City of London – the financial hub of Europe. The school is very well connected and hosts various career fairs and networking events with professionals from the City. The LSE brand is recognized by employers and will hopefully help open the door for an interview at one of the world’s top financial institutions.
“The school is very well connected and hosts career fairs and networking events with professionals from The City.”
The cultural location of LSE is another reason I chose to study there. At LSE you can take a one-hour lunch break and visit the National Gallery, only 10 minutes away. Everything is within walking distance, from museums to shopping centers, authentic international restaurants, or even astonishing street performers in Covent Garden. Some of the world’s most famous theater and musical shows are also taking place just two stops away.
The multinational nature of the school is another one of its greatest advantages, with students coming from more than 100 countries across the world. In my view this contributes a lot to individual development, since LSE places students in an environment where integration among people of various cultural backgrounds is essential. LSE also has offers a great variety of societies and extra-curricular activities to mix with students of different subjects and of different views from my own.
How has your MSc in Finance helped prepare you for a career in the financial sector?
The LSE MSc in Finance program focused more on real-life practicability than theory. Since I was more interested in corporate finance than asset markets I mainly took case-based courses. These classes were formed like discussions, giving the opportunity for every student to get involved, share an opinion and even argue for their own solution. The cases were diverse and emphasized the numerous types of problems a company’s management could face – from corporate restructuring and bankruptcy to mergers and IBOs, even venture funding for startups.
“In my view, the point of financial expertise is not just to provide calculations based on complex models, it’s a whole way of thinking.”
These classes also took into account country-specific factors, such as the legal environment and cultural background of the parties involved, which I also found of great importance. I found this approach to teaching to be more effective in terms of applicability since it stimulated informed decision-making. In my view, the point of financial expertise is not just to provide calculations based on complex models; it’s a whole way of thinking. In order to evaluate from a financial perspective you have to be able to analyze strategy, business model and alternative options for development of the company.
As well as the individual MSc in Finance classes, LSE also provided opportunities for students to meet career advisors and practitioners in order to discuss their goals, the viability of their career choices and their expected individual workloads. In my view, this was an advantage since most students did not have prior work experience and it is important to have further information resources in order to evaluate the best career path option.
Overall, I believe the MSc in Finance and Private Equity presented a number of the essential preconditions for a successful career in finance.
Did you experience/learn anything unexpected during your graduate school experience?
Upon my arrival in London I had various expectations for the program. I anticipated gaining extensive knowledge of the financial markets, deeper understanding of British culture and superior language skills. What I did not expect is that I would enhance my knowledge about the cultures, mentalities, and political and social environments in more than 40 other countries. I believe this is one of the greatest benefits of LSE. Communicating on a daily basis with people from across four continents, all with different cultural backgrounds, prior experiences and interests, made for a great learning environment. For me, this is what determined my personal development more than anything else.
What did you enjoy about postgraduate study?
What I enjoyed most about postgraduate study is the fact that it’s much more practical than my undergraduate degree. Moreover, it was focused on an area of my personal choice and therefore provided more specific knowledge than the broad ideas and perceptions taught in my bachelor degree.
I believe postgraduate study opened up a lot of doors for career progression, since the contacts I’ve established with recent and past graduates, professors and practitioners could prove very beneficial in the upcoming future.
What was the workload of your master's degree compared to your bachelor degree?
Compared to my undergraduate program, postgraduate study is much more intense. Assignments are due almost on a daily basis; most of them organized between teams. This put on a lot of time pressure but it also drove up efficiency. Overall, I think the pace of teaching was fine, but the program requires full attention and I don’t think it’s possible to combine it with employment, as I did during my undergraduate studies.
On an average day, what would you work on in class?
Because of my specialization in corporate finance and private equity I was primarily engaged with case studies. In my other modules I studied the FOREX markets, the recent unconventional monetary policy measures, and the various tools for risk management of investments.
What’s next for you?
I plan to go back to Bulgaria. Even though I realize that the financial sector in Bulgaria is fairly developed compared to the UK, I’ve made my choice to go back because I see a potential for progress and room for change, driven by the young generation. Moreover, I think that transferring experience from the UK can add value to the investment environment in Bulgaria and my qualifications in the financial area can act as a stepping stone for further career advancement.
What are your career goals?
I chose to specialize in private equity because I believe that startup companies are a powerful driving force for the economic development of any country. A historically immense number of business sectors have evolved based on entrepreneurship.
However, in order for this environment to flourish, one needs not only a pool of talented people, but also a good entrepreneurial culture, broad markets for growth and a safe political and legal environment for the investors. I believe that in Bulgaria we have some of these major prerequisites. My long-term goal is to contribute to the development of the missing ones.
In the shorter term, I plan to obtain more work experience in Bulgaria’s financial sector either by continuing with corporate banking or by getting involved in consultancy. I think that the skills, knowledge and contacts I have obtained at LSE will be of benefit for me and will definitely play a role when I try to accomplish these objectives.
