Investment Banking Internship

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

Investment Banking Internship Guide

Many investment banks offer internships, the duration of which is between 3 months and 2 years, depending on the profile an individual aspires to work in. As soon as the aspirant completes the internship, the journey as an investment banker begins.

Investment Banking Internship

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One might choose any profile based on the skills and aptitude they possess. However, if the intern outperforms, the internship provider is likely to absorb the person as a permanent employee of the investment firm.

Key Takeaways

  • An internship in an investment bank is the perfect opportunity to kickstart a potential career in investment banking. A good performance in such an internship can provide people with substantial employment opportunities in the field.
  • Internships in the field of investment banking help individuals build a CV that is suitable and appreciated by employers in investment banks.
  • Internships in investment banks can be found and procured through offline applications, employment and internship exchanges, company hunting, and social media.
  • The basic responsibilities of an intern in an investment bank include corporate banking, mergers and acquisitions, trading and investment, and capital markets.

Why Investment Bank Offer Internships?

The companies or the investment banksInvestment BanksInvestment 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 hold on to their vacancies, for they have to make arrangements to pay for new recruitment when the market does not favor their pockets.

So, there are layoffs of non-performing employees who are replaced with fresh talent in such situations. These firms, therefore, come up with summer or off-cycle investment banking internship opportunities to have a temporary backup and absorb the candidate if found suitable for the permanent job profile.

Two major benefits for the banks here are

  1. Internships are much cheaper and more economical for the company than full-time employees or permanent employees.
  2. And the second benefit is if the interns are outstanding performers they will make sure to offer them a permanent job. It would be best to cash on their benefits to strike through this industry at the right time.

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How To Get An Investment Banking Internship?

Getting an investment banking internship might not seem easy for candidates to have huge competition awaiting them. The unstable global economy has made working in this industry even though.

Getting through involves several calculations such as the right timing, the right type of skills, the correct understanding of the industry, creating a professional resume, and spreading across the industry through various means. Online and offline methods should be used, for you never know what method might work wonders. From drafting an investment banking internship cover letter to becoming part of the internship opportunities offered by the most reputed investment banks, aspiring candidates have to ensure a lot of things. However, the most important aspects to look at include:

Understanding the industry

Before one enrolls in any course or joins the concerned job, one must explore the field. The world today works with the help of the internet and its search engines. Using the internet to research the industry is the best step towards entering the field as an intern.

One must make sure to explore and know the different fields of investment banking and accordingly choose the profile they are most interested in. Some of the divisions found in the industry are listed below:

  1. Corporate financing
  2. Acquisitions and mergersAcquisitions And MergersMergers and acquisitions (M&A) are collaborations between two or more firms. In a merger, two or more companies functioning at the same level combine to create a new business entity. In an acquisition, a larger organization buys a smaller business entity for expansion.read more
  3. Capital marketsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more
  4. Trading and salesTrading And SalesOne of the main functions of an investment bank in the country is sales and trading, in which the investment banking sales team pitches clients for trading ideas and the traders team executes activities related to the purchase and sale of securities and other financial instruments in the market for itself or on behalf of its clients.read more

The aspiring interns must make sure they know the topmost investment banks across the globe and the best performers around their locality. The career path of an investment banker, last but not least, the different profiles offered to an investment banker.

Along with knowing about the journey of an investment banker, the work schedule and the risk involved in the job must also be known of. The main job of an investment banker is handling the money from investors, mainly high-profile investors. They have to manage a tough job, and hence they work for approximately 60 to 90 hours a week. Undoubtedly, they receive a handsome salary, including incentives, in return.

Developing skills

Applying for an off-cycle or summer investment banking internship requires excellent financial skills. Finance graduate must read through the college course once to be prepared to apply for this designation. On the other hand, a non-finance graduate must get the fundamentals of finance correct before applying for the internship.

Start with knowing the basics of finance, for example, understanding the trends of market and investments, macroeconomics and microeconomics and their environments, financial deals and the mechanics involved behind these deals, etc. do not forget expertise in any field only comes with practicing them in person.

Besides finance skills, one must make sure to have certain corporate skills that will help deal with co-workers, seniors, clients, and the organization’s management. Developing these skills takes a lot of time and practice; however, having a strong professional attitude to work as an investment banker is a must. Basic skills of dealing with people or maybe different types of people, communication skills, interpersonal skills, and analytical skills. Having creative skills and the ability to display your creativity in finance and interest in taking initiative as an employee, as a co-worker, and as a team member is preferred.

Creating a resume

The investment banking internship cover letter and resume are expected to mention hard skills like Excel, Accounting, Valuations, DCF, Relative Valuations, Comparable CompsComparable CompsComparable comps are nothing but identifying relative valuations like an expert to find the firm's fair value. The comparable comp process starts with identifying the comparable companies, then selecting the right valuation tools, and finally preparing a table that can provide easy inferences about the fair valuation of the industry and the company.read more, Financial Modeling, Mergers & Acquisitions.

CFA LevelCFA LevelThe CFA exam is regarded as one of the most difficult to crack. Your preparation, time management, and sequence plays will all play an important role in your journey.read more 1 will be an icing on the cake for an investment banking internship.

However, a resume needs to be honest and as precise as possible. A professional summary of what one is, their set of skills, capabilities, strengths, and suitability as an investment banker needs to be highlighted.

Communicate and display the resume in simple language with short and simple sentences. The interviewer will not be impressed by language but by skills.

To match up to the standards of an investment banker, the candidates can add a cover letter to the internship application. It needs not to be very long for the interviewer will only glance through it and not read it in detail.

These two documents work as the 1st impression in front of the management or the HR of the company. So, it would be best if that’s made right. Silly mistakes, spelling mistakes, and incorrect information is a simple NO.

The first document is the most important one to correct before applying for an internship.

Apply both online and offline

Circulating a resume is the next job after the resume is ready. These days circulating resumes has become very easy since the internet is available. One can read further to check on how they can circulate the resume and make themselves recognizable.

If one desires to apply online, one can apply using:

  • Job portals
  • Company websites
  • Social media

On the other hand, if one wishes to apply offline, one can apply via:

  • Job consultants
  • Campus interviews
  • Networking

How To Prepare for Interview?

Preparation is an integral part of the interview. If one is prepared for the interview, facing an interview with the best investment banks without any hesitation becomes easy. One must start preparing as soon as they start applying for internships. It’s never known when an interview comes up urgently. If they are prepared, they won’t require rushing at the last minute.

Read about the finance industry and investment banking careerInvestment Banking CareerAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. read more, and study the best investment banks globally and locally. Study about the investment bank you have to face the interview at. Keep your data and stats ready; list them down in your head to fire them at the interviewer.

After the resume and cover letter, meeting in person for the 1st time has to be a remarkable experience for both the interviewer and interviewee. Create an impression to kill and sustain in the market. Being prepared for your interview gives one the advantage of being prepared before you walk in for an investment banking internship interview.

Besides interview preparation, make sure to be presentable enough to attend the interview. As a management or finance student, one must be aware of the presentation of an investment banker. A banker is always very professionally dressed, which is mostly formal. There is no option for casual dressing, investment bankers dress formally to be professionally dressed as this makes them presentable.

So, remember the interview not just includes the preparation on finance, the investment banking industry, and the investment bank one has an interview with. Instead, it also includes making preparation for carrying oneself well as an investment banker to reflect their professional side.

Sometimes Investment Banking Interviews are case-based, do have a look at these Investment Banking Case StudiesInvestment Banking Case StudiesInvestment Banking (IB) Case Studies are an assessment criterion type for all the IB aspirants used to evaluate their performance in a theoretically demonstrated real-life scenario. read more for further details.

Frequently Asked Questions (FAQs)

What are the perks of an internship in an investment bank?

An internship in an investment bank can offer substantial exposure to investment banking and create a pathway for an individual to enter the field completely by solidifying and supporting his/her CV and providing practical knowledge and experience to the interns.

How can someone find an internship in an investment bank?

People can find internships in investment banks through various sources such as job portals, website hunting, social media, campus interviews, and networking with consultants.

How do internships in investment banks benefit individuals as well as the banks?

Internships in investment banks can create a two-fold benefit. First, they can open doors in investment banking for young professionals and create a pathway for them to enter this field. It can also provide investment banks with young and vibrant talent with innovative caliber and find future employees and bankers.

How do internships in investment banks benefit individuals as well as the banks?

Internships in investment banks can create a two-fold benefit. They can open doors of the field of investment banking for young professionals, and can create a pathway for them to enter this field. It can also provide the investment banks with young and vibrant talent with innovative caliber, and find future employees and bankers.

This has been a helpful Guide to Investment Banking Internship. Here we explain how to get an internship opportunity and how to prepare for it. You may also have a look at these articles to boost your skills in Investment Banking

Reader Interactions

Comments

  1. Miles Lekman says

    Wonderful blog. Well I also have a small question. I want to gain deep knowledge about investment banking, so should I take an investment banking course or a training program? Which is better?

    • Dheeraj Vaidya says

      Well if you want to excel and gain deep knowledge of investment banking then doing an investment banking course will be very helpful. If you are still confused whether to take it or not then first take a course, go through it and see whether you would like to do this kind of work in your career.

  2. Andre Frankson says

    Thanks for sharing such informative notes it was really very helpful for me. Can you please tell me how to get an Investment Banking job offer? Any steps to follow

    • Dheeraj Vaidya says

      thanks and I am glad this was helpful for you. I think there are top 4fundamentals to get an Investment banking job offer. They are as follows
      1. First try to understand their business very well.
      2. You need to brush up your interpersonal skills
      3. You need to develop your great resume – include keywords like Financial modeling, accounting, valuations etc. For this you need learn these core skills!
      4. You need to be prepared with your own story (why IB?)
      If you follow the above steps I am sure you will be able to find the best Investment banking job offer. All the Best