How to become an investment banker

Investment banking is a very popular career path among MBA graduates. While roles such as trader and analyst are accessible to candidates from a wide range of financial backgrounds, an investment banker position usually requires the high-profile skills and business acumen that only an MBA can give you. If you’re interested in becoming an investment banker, here’s everything you need to know about the role and how to best prepare for it. What do investment bankers do? Investment bankers are key players in many financial institutions across the world, including world-regarded financial banks and holding companies like Morgan Stanley, JPMorgan Chase and Goldman Sachs. The role’s main focus is to identify the financial risks associated with business operations to ensure that companies, such as banks and non-profit institutions save precious time and money. Other responsibilities include assisting in acquisitions, mergers and sales; curating data and documentation for companies to go public; planning and pricing financial investments. Pros of becoming an investment banker There are many perks to landing a job as an investment banker. First, the average salary is high, starting off at US$75,000 and reaching six figures after bonuses and career jumps. Second, you’ll be able to refine your business skills in a high-pressure environment, making you an attractive candidate in the eyes of many recruiters and big players in the business world. Aside from obvious accounting and...

What is an Investment Banker? An investment banker is a finance professional who works closely with corporations, institutions, and governments to help them raise capital, conduct a merger or acquisition, or restructure. For example, a client may require debt financing in order to acquire a target or need strategic advice on the acquisition. Investment bankers are split into coverage groups (such as Consumer, Retail & Healthcare) and product groups (such as Mergers & Acquisitions) to cater to specific client needs. Learn how to become an investment banker with our detailed guide that will give you an insight into the industry. Key Learning Points • Investment bankers help companies raise capital and advise clients on deals • A degree and relevant work experience are important prerequisites for the job • There is a clearly defined team structure and hierarchy within banks • A variety of skills is required to succeed in investment banking Education and Work Experience Requirements Investment bankers typically require a minimum of a bachelor’s degree with a passing grade of a 2:1 in the UK. Some banks in the US are highly selective and favor applicants who have graduated from an Ivy League college. Although STEM (science, technology, engineering, and mathematics) students tend to gravitate toward How to Break into Investment Banking with No Experience The key to getting your foot in the door is an internship. This is usually the first point of contact in investment banking an...

• Investment banks facilitate deals between companies that want to raise money by issuing securities and investors who are willing to pay in exchange for securities. • Investment bankers handle financing issues, including helping a corporation choose what type of securities to issue, or placing those securities with investors, also known as underwriting. • Investment bankers also help with the completion of mergers and acquisitions, including company valuation, strategizing, and deal finalizing. What Does an Investment Banker Do? After graduating with a bachelor's degree, it is possible to begin working in the field as an investment banking analyst conducting research and producing analytical reports for more senior staff members. Working as a financial analyst in a wealth management firm, bank, hedge fund, or another financial organization is also a good way to begin building experience. Commonly, the junior analyst phase is "on-the-job training" that usually lasts about 2 years. Some companies such as Goldman Sachs have Goldman Sachs University, which provides education to new analysts for 6-8 weeks. Junior investment bankers eventually participate in most aspects of investment banking, including the planning, structuring, and execution of large financial transactions. With good performance, junior bankers can move into senior positions overseeing transactions from start to finish. What Type of Education Is Most Common? A bachelor's degree is the minimum educational qual...

Contents • What’s Investment Banking? • How to Become an Investment Banker • Tips on How to Get into Investment Banking with No Experience • #1. Start with internships/Volunteer opportunities • #2. Use your story to create an elevator pitch • #3. Build a standard resume or CV • #4 Learn and prepare well for interviews • #5. Register with Financial Industry Regulatory Authority (FINRA) and other communities for finance and investment banking professionals • #6. Be up-to-date with industry news, current events, and trends • #7. Create and build your own blog related to finance • #8. If you fail, re-evaluate and try again • Final Thoughts • Frequently Asked Questions (FAQs): • 1. Can I get a job in investment banking with no experience? • 2. What is the easiest way into investment banking? • 3. How do I get my first investment banking job? But breaking into this competitive industry without prior experience can be a daunting process—especially if you don’t have an expert to hold your hand along the way. However, if you use the right approach and strategy, starting a career in In this article, I’ve put together a breakdown of straightforward, proven tips, insights, and strategies for getting into investment banking without experience that you can’t get anywhere else. You’ve got a minute? Let’s dive in! What’s Investment Banking? In order to have a clear understanding of how to break into Investment banking offers financial guidance to individuals, organizations, and corporatio...

• Becoming a managing director (MD) at a financial firm like an investment bank means high compensation and status, but only a few such positions are available in each department. • To become an MD, you first have to land an entry-level job and then survive the highly competitive corporate culture of investment banks. • Through hard work, commitment, and keen social skills, one can hope to get promoted through the ranks, all the way up to MD. • Managing directors are responsible for the day-to-day operations of their groups and report directly to the CFO, COO, CRO, or CEO. • Most managing directors are responsible for bringing in clients and closing deals while overseeing directors, vice presidents, associates, and analysts in their group. What a Managing Director Does Managing directors are at the highest levels in the corporate structure of an investment bank except for the top executive positions, such as A Long-Term Proposition There are not many of these jobs, so competition is fierce, and it takes a grueling amount of work to get that far. The salary benchmarking firm Emolument has released a report on how long it takes to become a managing director (MD) at an investment bank. The results were not surprising. It takes more than 12 years at all of the major investment banks. Most take more than 14 years and it can take more than 18 years. Investment banks are not known for holding hands or emphasizing training. Andrew Gutmann, author of How to Be an Investment Banker:...

Investment banking is one of the most It’s no surprise considering the highly lucrative and rewarding nature of the industry. Even entry-level investment bankers can make six figures each year, and Payscale MBA students are popular with investment banks as it’s a high-pressured and demanding job that requires a specific set of skills. But the key question is: what do investment bankers actually do? What do investment bankers do? At the core of the job, investment bankers act as financial advisors to their clients—their chief aim is to help them make money. Investment banking clients can range from high net-worth individuals, to hedge funds, to institutional investors. The typical way an investment banker makes money for their client is by facilitating a transaction, selling securities such as a share or bond to outside investors. The most common example is between a firm and the market (think IPOs), but investment bankers also work on transactions between two firms (like mergers or acquisitions). Sometimes an investment banker simply works for their client by helping to establish business plans. The job requires a number of key skills and each year top investment banks turn to the global MBA cohort to find individuals who possess them. Here are four skills that are critical if you plan to have a career as an investment banker. READ: JP Morgan, HSBC, Citi Bank: Who Are The Top Financial Companies? ©krblokhin/iStock 1. Presentation Investment bankers frequently engage with i...

Investment Banker Positions: Junior to Senior Progression The career of an investment banker progresses along a fairly standard path. • Analyst (grunt) • Associate (glorified grunt) • VP (account manager) • Director (senior account manager, rainmaker in training) • Managing Director (rainmaker) Some banks call certain investment banker positions different names or have added levels of hierarchy. For example, sometimes banks separate Senior Vice President from Vice President. Other times, Director is split up into Director and Executive Director (more senior). However, regardless of the names, the general job functions of each relative position tend to be consistent bank to bank. If you are an undergraduate, you are applying to banks with the aim of landing an investment banking analyst position. Assuming you do well, have an interest in staying, and there is a need, some banks offer direct promotions from analyst to associate instead of requiring that you go back and get your MBA (typically called “A to A”). If you are an MBA student, you are applying to banks with the aim of landing an investment banking associate position and aspire to work up the ranks to Managing Director one day. Learn More → Investment Banking Primer Investment Banking Analyst Investment banking analysts are typically men and women directly out of undergraduate institutions who join an investment bank for a two-year program. Analysts are the lowest in the hierarchy chain and therefore do the majority...