Investment Banking in Houston

Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

Investment Banking In Houston

Investment Banking in Houston does not focus is not diverse fields; rather emphasizes oil, gas, energy, and natural resources segments. In addition, the only requirement to get into investment banking in Houston is to be ready to stay in Texas.

Investment Banking in Houston

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For one to become an investment banking analyst, it is important to belong to Texas where investment banking services are of different nature, yet useful. There are multiple functions of Investment BankingFunctions Of Investment BankingInvestment banks perform various functions for their clients, including initial public offerings (IPOs), mergers and acquisitions, risk management, equity research, structuring of derivatives, merchant banking, and investment management.read more that make them the most sought-after financial entities in Houston.

How Does Investment Banking In Houston Work?

Investment banking in Houston takes care of particular niches and ensures the economy gets the best services and flourishes every day. It is completely different from the investment banking services and opportunities offered in New York both in terms of approach and objectives.

In Houston, the actual focus of investment banking is on the energy industry. Here are the following services that the top investment banks in Houston provide –

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List of Top 5 Investment Banks in Houston

Some of the investment banks operating in Houston have been listed below:

  1. WoodRock & Co
  2. Pritchard Energy Advisors
  3. Integrity Advisors, Inc
  4. M&S Fairway Capital Partners
  5. GulfStar Group

Let’s discuss them in brief –

Other than these, the bulge-bracket investment banksBulge-bracket Investment BanksTop 10 bulge bracket investment banks are - Blackstone, Goldman Sach & co, Morgan Stanley, J.P Morgan Chase & co, Bank of America Merrill Lynch, Credit Suisse, Citi, Deutsche Bank, HSBC, UBS.read more such as Barclays, Citi, Lazard, Evercore, etc., can be mentioned.

Recruitment Process

The most important thing about the recruitment process in Houston is that you need to live in Texas for a long period. They even provide opportunities to students who don’t have an excellent track record or students who are from lesser-known schools.

One thing that will help you break into the energy finance industry of Houston is internships. If you have multiple internships, you will always be the most preferred candidate of all.

Plus, if you can network harder and get to know most of the people in the industry, job search in the investment banking industry would be easier.

It would help to prepare investment banking interviewInvestment Banking InterviewThe purpose of this Investment Banking Interview Questions and Answers is simply to help you learn about the investment banking interview topics.read more questions on valuations for upstream companies, various verticals like upstream, downstream, and midstream, updated on recent energy transactions, NAV model, MLP, etc.

Culture

If you want to benefit from working harder and partying harder, Houston is not that place. Yes, you would be working as hard as you would do in New York if you’re engaged in investment banking. But in Houston, most of the nightclubs and bars are closed quite early. So when you retire from work for the day, you won’t have a place to hang out.

If you have a family, Houston is a great place. But for single life, Houston wouldn’t be the right place.

Salary

In Houston, the compensation of an investment banking professional is quite high but not as high as their peers in New York or San Francisco. Here’s the average compensation of an investment banking in Houston per annum –

Investment banking in Houston Salary

source: Glassdoor

If you notice, you will see that the average salary of investment banking in Houston is 11% less than the national average of an investment banker in the US.

Investment Banking Exit Opportunities

In Houston, one of the most significant exit opportunities is private equityPrivate EquityPrivate equity (PE) refers to a financing approach where companies acquire funds from firms or accredited investors instead of stock marketsread more. Investment bankers that exit investment bankingExit Investment BankingAmong the several exit options available to investment bankers are: 1.Private Equity 2.Hedge Funds 3.Strategy Consulting 4.Fin-Tech 5.Advisory for large corporates.read more go for the private equity domain. Other exit opportunities are joining startups (especially tech startups) or working in the corporate finance industry.

Exit routes also depend very much on the market position. If the market isn’t doing well, the investment bankers don’t get to work on attractive deals. As a result, they don’t seem to get opportunities to grow and reach a higher rung. Due to this, they quit and join a different domain or industry.

Recommended Articles

This has been a guide to Investment Banking in Houston. Here, we mention a list of top banks and explain their recruitment process, culture, and salary. You may also have a look at the following article for learning more about Investment Banking –

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