List of Top 4 Careers 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.

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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 underwriting and other financial advisory services.

  • Investment banks can be further classified as below : Bulge Bracket: Bulge BracketBulge BracketTop 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 refers to the large banks that serve the large corporate and government. They also provide a bouquet of services, including banking, market-making, underwriting, and other financial products.Mid-Market: Mid-Market refers to the banks which focus on mid-level companies.Boutique Banks: Boutique investment banksBoutique Investment BanksThe top boutique investment banks are - Perella Weinberg Partners (Global M&A Advisory – Boutique), Lazard (Global M&A Advisory), Rothschild (Global M&A Advisory – Boutique), Evercore Partners (Global M&A Advisory – Boutique), Greenhill & Co. (Global M&A Advisory – Boutique, Blackstone (Global M&A Advisory).read more are small banks specializing in one aspect of IB Services. They generally work on smaller deals.They are further classified into buy-side and sell-side. Buy-SideBuy-SideThe term “buy-side” refers to entities that advise their clients like individual investors and institutional buyers on investments and securities purchases. Private equity firms, mutual fund companies, life insurance companies, unit trusts, hedge fund companies, and pension fund entities are examples of buy-side firms.read more refers to mutual fundsMutual FundsA mutual fund is a professionally managed investment product in which a pool of money from a group of investors is invested across assets such as equities, bonds, etcread more, pension funds, hedge fundsHedge FundsA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.read more, and other large investment companies. Sell-side refers to the trading of securities for cash or underwriting of services.The primary purpose of an investment bank is to assist the company in its Initial Public OfferingInitial Public OfferingAn initial public offering (IPO) occurs when a private company makes its shares available to the general public for the first time. IPO is a means of raising capital for companies by allowing them to trade their shares on the stock exchange.read more, acting as a book-running lead manager to the issue and helping the company to go public by listing its equity on the stock exchanges.However, there are other ancillary services like M&A, Sales and TradingSales And TradingOne 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, and Asset Management, which plays a crucial role in an investment bank.

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 regarding bonuses and perks.

  • Bulge Bracket: Bulge BracketBulge BracketTop 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 refers to the large banks that serve the large corporate and government. They also provide a bouquet of services, including banking, market-making, underwriting, and other financial products.Mid-Market: Mid-Market refers to the banks which focus on mid-level companies.Boutique Banks: Boutique investment banksBoutique Investment BanksThe top boutique investment banks are - Perella Weinberg Partners (Global M&A Advisory – Boutique), Lazard (Global M&A Advisory), Rothschild (Global M&A Advisory – Boutique), Evercore Partners (Global M&A Advisory – Boutique), Greenhill & Co. (Global M&A Advisory – Boutique, Blackstone (Global M&A Advisory).read more are small banks specializing in one aspect of IB Services. They generally work on smaller deals.

Let us discuss the Investment Banking Career Path in detail –

Career #1 – Analyst

Career #2 – Associate

Career #3 – Vice President

Career #4 – Managing Director

Conclusion

Entry into the Investment banking industry is a bit difficult at the early stages of the career but gradually becomes easy. 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 will double from where it is now. From now on, there will be a lot of scope in the IB profile since not many candidates with that caliber are available in the market to perform this role since it requires senior-level expertise.

Investment Banking AnalystInvestment Banking AnalystInvestment Banking Analyst works with investment banking team and expertise in the area of Accounting, Financial Modeling, Project financing, Project Valuation, and Financial statement Analysis. These analyst has deep knowledge in Excel and they are good at VBA to analyze the market data and financial modeling. The analytic work consists of building a financial model for different projects like Infrastructure projects (i.e. Power projects, real estate, etc.).read more prepares pitch book presentationsPitch Book PresentationsPitch Book is an information layout or presentation used by investment banks, business brokers, corporate firms, and others to provide potential investors with the firm’s main attributes and valuation analysis, which helps them decide whether or not to invest in the client’s business. A pitch book is also known as Confidential Information Memorandum, which is used by the firm’s sales department to help them sell products and services to a client.read more on the companies for the senior team members required for the discussion. He has just completed his degree from college and is looking out for a Job in the IB Industry to make a career.

The Investment Banking Associate oversees the work done by the junior analyst and guides 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.

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 responsible for sourcing dealsSourcing DealsDeal Origination is a strategy used by firms to find investment prospects, either by gaining industry knowledge or by forming a deal for themselves using their connections with the involved parties.read more from the market both in the equity and debt space and periodically generates a good amount of revenue for the company.

The managing Director spearheads the company’s investment banking business and reports to the board of directorsBoard Of DirectorsBoard of Directors (BOD) refers to a corporate body comprising a group of elected people who represent the interest of a company’s stockholders. The board forms the top layer of the hierarchy and focuses on ensuring that the company efficiently achieves its goals. read more about the financial liquidity and whether it is a concern in operation.

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

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