Investment Banking Internship Guide
Investment banking internship is offered by many investment banks and the duration is between 3 months to 2 years as it completely depends on the profile you choose as an intern. And if you successfully complete your internship you will definitely see yourself as an investment banker soon. If your outperform you might be absorbed as a permanent employee of the investment bank you are pursuing your internship with… you never know.
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. hold on to their vacancies for they have to make arrangements to pay for new recruitment when the market does not favor their pockets. In such situations, there are layoffs of not performing employees in order to recruit fresh talent. However, this can be a win-win situation for you, my friend.
In a situation where investment banks are looking to offer investment banking interns to acquire future investment bankers, you must grab it and of course, you will. However, will this situation be beneficial for investment banks?
Two major benefits for the banks here are
- Internships are much cheaper and economical for the company in comparison with full-time employees or permanent employees.
- And the second benefit is if you are an outstanding performer they will make sure they might offer you a permanent job. You need to cash on their benefits to strike through this industry at the right time.
Know and understand the Investment Banking Industry
Before you get into any course or any job you might want to know about it. The world today works with the help of the internet and its search engines. Use the internet to research the industry you would want to enter as an investment banking intern.
You should make sure you know the different fields of investment banking; you might want to choose what field you want to enter as an investment banker from one of the following
- Corporate financing
- Acquisitions and mergers
- 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.
- 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.
You should make sure you know the topmost investment banks across the globe and the best performers around your locality. The career path of an investment banker last but not the least the different profiles offered to an investment banker.
Along with knowing about the journey of an investment banker you must know the work schedule and the risk involved in the job. The main job of an investment banker is handling the money from his investors mainly high profile investors. He has to manage a tough job and hence he works for approximately 60 to 90 hours weekly. Undoubtedly is paid a handsome salary including incentives.
Develop your Investment Banking skills
You want to apply for an investment banking internship, you sure would be judged on your financial skills. If you are a finance graduate you should make sure you read through college course once to be prepared before you apply for this designation. If at all you are not a finance graduate and you would still like to apply for this designation you must make sure you get the fundamentals of finance correct before you apply for the internship.
Start with knowing the basics of finance, for example, understand 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 come with practicing them in person.
Besides your finance skills, you must make sure you have certain corporate skills that will help you deal with your co-workers, your seniors, your clients and the management of the organization. Developing these skills takes a lot of time and practice; however, it makes sure you have a strong professional attitude to work as an investment banker. Basic skills of dealing with people or maybe different types of people, communication skills, interpersonal skills and of course analytical skills. You must also possess creative skills along with the ability to display your creativity in finance along with an interest in taking initiatives as an employee, as a co-worker, and as a team member.
Bottomline – Your Investment Banking resume should have hard skills like Excel, Accounting, Valuations, DCF, Relative Valuations, Comparable Comps, 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. 1 will be an icing on the cake for an investment banking internship.
For developing above investment banking skills, you may also consider this Investment Banking Course
Develop an Investment Bankers resume
Your resume needs to be honest and as precise as possible. A professional summary of what you are your set of skills your capabilities, strengths, and suitability as an investment banker needs to be highlighted in your resume.
Communicate and display your resume in simple language with short and simple sentences. The interviewer will not be impressed by your language but by your skills. Along with the responsibilities you are ready to take up as an intern.
To match up to the standards of an investment banker you can add a cover letter to your internship application. However, your cover letter needs to be very long for the interviewer is only going to glance through it and not read it in detail.
These two documents work as your 1st impression in front of the management or the HR of the company. So you need to make it right, silly mistakes, spelling mistakes, and incorrect information is a simple NO…
Your 1st document is the most important one to get the same correct before you apply for an internship.
Apply both online and offline
Circulating your resume is going to be your next job after your resume is ready. These days circulating your resume has become very easy since the internet is available. You can read further to check on some ways you can circulate your resume and make yourself recognizable.
Online resume circulation
Since the availability of the internet has come into being contacting the organization to make sure you send then your resume has become very simple. The internet has the following ways of helping you to find an investment banking internship.
There are a number of job portals available that can help you look for internship options online by your favorite recruiter. Create an account in these portals and post your resumes. Look for internship opportunities and apply for the same online.
Post on company websites
Companies have the types of openings posted on their company website under the careers option. Make a list of 10 or more top investment banks and post your resume on their website. If there is a relevant opening apply for the same.
Here is the list of Top Investment Banking Firms that will help you jumpstart –
- Boutique Investment Bank
- 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.
- Middle Market Investment BanksMiddle Market Investment BanksThe deals of a mid-tier investment bank range from USD 50 million to USD 500 million. They offer the same services as the bigwigs, i.e. bulge bracket banks, but are not as geographically present internationally as they are.
One of the most famous modes of passing on your resume is social media. Join these professional social media sites such as LinkedIn, Twitter, etc. you also should be active on other sites such as Facebook, Google Plus to make sure that you do not miss out on a group that has an opening relevant for you.
Offline resume circulation
When people did not have the internet they still had jobs. Yes of course jobs were not accessible and available so easily. However, they were a few ways to get through a company for a relevant job.
Companies coming into your college, to offer you an internship is an amazing and an ultimate opportunity to break through as an intern with an investment bank as an investment banker. However, you need to make sure you crack their interview. Be prepared with the company details, the background of the industry and your profile to make sure you do not lose the opportunity.
If you crack through now you will save on the other hassles of transporting your resume to the banks through various sources.
Catch up with job consultants
One of the 90s ways of getting a job is meeting up with consultants. This way of keeping yourself in focus was a way of getting a job just before the internet was introduced. However, this way of getting in touch with recruiters is really famous even today. The best way of showing your presence is to meet up with the consultancy firms once a week as they are aware of the investment banking internship opportunities in the market.
When it is about consultancy firms or hr firms there might be charges involved. Some firms might charge you a joining fee, some might charge you a fee after you place and whereas some firms might not charge you at all they will take placement charges from the investment bank you will be placed in.
The chances here are high of getting placed because the consultant will keep sending you for interviews. Appearing for interviews and taking your chance will definitely lead you to success.
To enter into any business you have to have a strong network. The internet these days has made networking simple. However, besides the internet, you must create a network for yourself. When it is about networking you must not rely only on the internet or social networking sites. Take the extra effort and meet up with people in the investment banking sectors. This effort will also be of great help in the future for you and your career. Continue to keep in touch with your contacts as this industry keeps providing opportunities.
As you create a network you must confirm if you would like to live in this industry and grow. If yes make sure you do not lose on these contact as these contact will help you not just sustain and grow but also get jobs at every level of your career in this industry.
Prepare for your Investment Banking Internship Interview
Do you never know which company might like to hire you as an intern? Do you never know what offer they make? Hence it is very important to always be ready. If you outperform you might get an opportunity to become one of their permanent employees. If you are prepared for your interview you might be able to face an interview of the best investment banks without any hesitation. You never know if you have an interview coming up urgently. If you are prepared you will not need to do the last minute preparation.
Prepare for not just 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. , but also 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 in down in your head to fire it at the interviewer.
After your resume and your cover letter meeting you in person for the 1st time has to be really remarkable for the interviewer. Create an impression to kill and sustain in the market. Being prepared in for your interview is definitely going to give you the advantage of being prepared before you walk in for an investment banking internship interview.
Besides your interview preparation make sure you are presentable enough to attend an internship interview. We presume as a management or a finance student you must have the awareness of the presentation of an investment banker. A banker is always very professionally dressed which is mostly formally. Without an option of casual dressing investment bankers dress formally to be professionally dressed as this makes them presentable and
So your interview not just includes your preparation on finance, the investment banking industry, the investment bank you have your interview with it also includes your preparation on how you look and carry yourself as an investment banker that is your professional side. No more looking and behaving like a student.
Sometimes Investment Banking Interviews are case-based, do have a look at this 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. for further details.
Getting an investment banking internship might seem not as easy as it looks for the candidates to have a huge competition awaiting them. The unstable global economy has made working in this industry even though.
Getting through involves a number of calculations such as the right timing, the right type of skills, correct understanding of the industry, creating a professional resume and spreading in across the industry through various means. Both online and offline methods should be used for you never know what method might work wonders.
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