Careers in Investment Banking

List of Top 4 Career in Investment Banking

Careers List in Investment Banking: Below mentioned are some of the Investment Banking Roles that a person can reach in his career.

Careers in Investment Banking

You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Careers in Investment Banking (wallstreetmojo.com)

Overview of Investment Banking Career

Investment BankingInvestment BankingInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more is a financial services company that engages in financial advisory and capital raising services to individuals, corporate, and government institutions to meet their financial needs. Unlike Commercial Banks, they do not accept deposits from the public; instead, they act as a mediator in providing underwriting and providing other financial advisory services.

To make a career in investment banking, one needs to spend 3-5 yrs in a boutique investment bank and then move to a bulge bracket one. It is one of the most favored roles in the finance industry since it requires a high level of expertise and knowledge to execute a transaction. Additionally, the Investment Banking career is one of the highest-paid jobs in the financial services industry in terms of bonuses and perks.

Let us discuss the Investment Banking Career Path in Detail –

Career #1 – Analyst

Who is an Analyst?

Investment Banking Analyst prepares pitch book presentations on the companies for the senior team members required for the discussion. He is the one who has just completed his degree from college and is looking out for a Job in the IB Industry to make a career.

Analyst – Job Description
ResponsibilitiesResponsible for updating the deal books on a periodic basis and perform industry analysis as well to complement the decision-making process.
DesignationInvestment Banking Analyst
Actual RoleIs to work on large databases and presentations, prepare IM, due diligence report, etc.
Top CompaniesJp Morgan, Morgan Stanley, Goldman Sachs, Bank of America, and E&Y are one of the top 5 Investment Banks in the world.
SalaryThe median annual salary for an analyst will be between $80,000 to $1,00,000. This is a very broad number and can vary from bank to bank.
Demand & SupplyHighly demanded profile since it requires extensive presentation skills to prepare different types of pitches to the clients with limited data available.
Education RequirementCFA/CPA / MBA from Tier -1 Universities with at least 2-5 Yrs of Exp.
Recommended CoursesCPA/ MBA / CFP/ CFA
PositivesBe a part of the entire deal cycle and chances to earn huge bonuses at the end of the year.
NegativesLong working hours on building presentations and storing client data.

Career #2 – Associate

Who is the Associate?

Investment Banking Associate oversees the work done by the junior analyst and guiding him properly in the deal process. He leads the execution of the deal and is the single point of contact between the client and the investor.

Associate – Job Description
ResponsibilitiesResponsible for checking the work done by the analyst and mentoring him with the required knowledge and expertise required for the job.
DesignationInvestment Banking Associate
Actual RoleSupport the vice president in the entire deal cycle and play an important role in the execution as well as he is supposed to handle a team of analyst under him.
Top CompaniesJp Morgan, Morgan Stanley, Goldman Sachs, Bank of America and E&Y are one of the top 5 Investment Banks in the world.
SalaryThe median annual salary for an investment banking associate can be anywhere between $2,00,000 to $3,50,000 since it is a professional role. This is a vast number and can vary from bank to bank.
Demand & SupplyHighly knowledgeable and skilled role since it requires practical experience to execute a transaction in the firm effectively.
Education RequirementCFA/CPA / MBA from Tier -1 Universities with at least 7-10 yrs of exp.
Recommended CoursesCFA/CPA/ MBA
PositivesLead a team of analysts and report to the vice president.
NegativesLong working hours and is responsible for all the work done by the junior analyst.

Career #3 – Vice President

Who is Vice President?

The Vice President leads the investment banking divisionInvestment Banking DivisionInvestment Banking Division is a segment of the investment bank offering advisory & corporate finance services. It executes mergers & acquisitions, deals with capital raising, & handles several kinds of advisory mandates. read more in the company with a team of analysts and associates and reports to the managing director about the profit & loss account. He is the person responsible for sourcing deals from the market both in the equity and debt space and generates a good amount of revenue for the company on a periodic basis.

Vice President – Job Description
ResponsibilitiesResponsible for business development and execution of deals.
DesignationVice President – Investment Banking
Actual RoleTo build relationships with corporates and ensure that the company gets good business from them regularly.
Top CompaniesJp Morgan, Morgan Stanley, Goldman Sachs, Bank of America and E&Y are one of the top 5 Investment Banks in the world.
SalaryThe median annual salary for a general manager can be anywhere between $ 3,00,000 – $5,00,000. This is a very broad number and can vary from bank to bank.
Demand & SupplyHighly Demanded Profile in IB because the IB Division P&L is dependent upon the VP who is supposed to bring business to the company.
Education RequirementCFA/CPA/MBA/Valuation Expert with 10-15 yrs of exp.
Recommended CoursesCFA/CPA/MBA
PositivesLeads the department and allocates work to the team members.
NegativesThe salary component is less fixed and more variable or performance pay.

Career #4 – Managing Director

Who is the Managing Director?

The managing Director spearheads the investment banking business of the company and reports to the board of directors about the financial liquidity and whether it is a concern in operation.

Managing Director – Job Description
ResponsibilitiesResponsible for generating IB deals from the market both in the equity and debt space.
DesignationMD
Actual RoleBusiness development as ll the team members depend upon the MD.
Top CompaniesJp Morgan, Morgan Stanley, Goldman Sachs, Bank of America and E&Y are one of the top 5 Investment Banks in the world.
SalaryThe median annual salary for the same can be anywhere between $ 5,00,000 to $ 10,00,000. However, they are more in favor of the commissions out of the deals that get executed.
Demand & SupplyIt is a specialized professional role whose highest degree of networking skills and contacts to get the work done.
Education RequirementCCFP/CPA / MBA from Tier -1 Universities with at least 15-20 yrs of exp.
Recommended CoursesCPA/MBA/CFA
PositivesSpearhead the most highly paid department of any organization. Opportunity to visit large corporate and develop a relationship that may have synergies in the long term.
NegativesRisk of losing the job if the MD is not able to bring business to the company.

Conclusion

Investment Banking is one of the most favored roles in the industry since it comes with very high compensation and knowledge. With the kind of technological advancement in the world, the IB industry is going to get doubled from where it is now. Going forward, there will be a lot of scope in the IB profile since not may candidates with that caliber are available in the market to perform this role since it requires senior-level expertise. The entry in the Investment banking industry is a bit difficult at the early stages of the career but gradually becomes easy ahead.

Recommended Articles

This has been a guide to careers in investment banking. Here we provide the list of top 4 careers in investment banking, which include Analyst, Associate, Vice President, and Managing Director. You may also have a look at these finance articles below –

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *