Interview with Larry Grafstein – Deputy Chairman – RBC

What Does It Take to Build a Resilient Career in Investment Banking? 

In the fast-paced world of finance, success is often measured in numbers. But behind the deals and dollars are the stories, lessons, and strategies that truly define a leader. 

Larry Grafstein, Deputy Chairman of RBC Capital Markets, has not only navigated the complexities of investment banking but has also advised on over $1 trillion in completed transactions. From unexpected career pivots to working with future world leaders like Boris Johnson and Emmanuel Macron, Larry’s journey is anything but conventional. 

In this interview, Larry shares the secrets to thriving in a challenging industry, the importance of relationships, and his candid advice for aspiring leaders. Whether you’re just starting your career or looking to refine your leadership approach, his insights offer a roadmap to success. 

The Unexpected Path to Investment Banking 

Larry didn’t plan to become a banker. In fact, his early interests were in law and politics. 

“I actually spent my younger years studying law and politics, not finance,” Larry shared. "But the late 1980s were an exciting time for finance, and that sparked my interest. I took some courses related to corporate law, and before I knew it, I was working in investment banking. What was supposed to be a couple of years has now turned into a few decades." 

This unplanned transition shows that being open to new opportunities can lead to long and successful careers in unexpected fields. 

Focus on Learning, Not Just Climbing the Ladder 

For young professionals entering the industry, Larry advises focusing on the substance of the work rather than worrying too much about promotions or compensation. 

“Early in your career, it’s easy to get caught up in titles and compensation,” he says. “But it’s the experiences and relationships you form that really build your foundation. Push yourself beyond your comfort zone and work on interesting things—that’s how you grow.” 

Larry stresses that learning from colleagues and clients, and challenging yourself intellectually, are key to long-term success. 

Boris Johnson and Emmanuel Macron as Colleagues? Yes, Really. 

Larry’s career has led to some surprising connections. 

“At Oxford, I was President of the Oxford Union debating society, and one of my political protégés was Boris Johnson. Later, when I worked at Rothschild, Emmanuel Macron was a young banker there. Not many people can say that both Boris and Macron worked for them at some point!” 

It’s a unique and unexpected story, underscoring how finance is filled with surprising opportunities and relationships. 

The Importance of Relationships 

One consistent theme throughout Larry’s career is the power of relationships. 

“In finance, the people you meet early in your career may end up being your most valuable connections down the road,” he explains. “Don’t take anyone for granted. Today’s assistant treasurer could be tomorrow’s CFO.” 

Larry emphasizes the importance of nurturing relationships throughout your career, even in today’s fast-paced, technology-driven world. “Use the tools available, whether it’s LinkedIn or just a quick email to keep in touch. It’s so much easier now than it used to be.” 

What Sets Great Leaders Apart? 

When asked what has helped him develop as a leader, Larry mentions the importance of reflection and resilience. 

“Good judgment comes from experience, and experience often comes from bad judgment,” he laughs. “You have to learn from your mistakes and not be afraid to admit when you don’t know something.” 

He also talks about the importance of keeping perspective in a career that’s often demanding. “It’s a marathon, not a sprint. Try to take the long view and don’t let the urgent crowd out what’s really important—your relationships, both at work and in your personal life.” 

The Future of Investment Banking 

As we look ahead, Larry is cautiously optimistic about the future of investment banking. 

“We’ve been through some tough times recently, but I think we’re seeing more resilience in the markets than expected. It’s important to remember that cycles are normal in this industry, and they teach you valuable lessons. In the long run, if you focus on learning and building relationships, you’ll be prepared for whatever comes next.” 

Final Advice for Aspiring Leaders 

Larry’s final words of advice are simple but powerful: “Focus on what really matters. Don’t let anxiety or the pressures of the job cloud your judgment. And remember, your career is built on the people you meet and the experiences you have—so make sure you’re learning and building those relationships along the way.” 

If Larry’s insights resonate with you, check out the full audio or video interview below.