Investment banking is one of the most attractive industry to work in. not only for people with formal education in finance, people with diverse backgrounds are looking to join this industry not just for the money but for the glamour that this industry offers to individuals.
There are different types of jobs within an investment banking firm. While most of the jobs are with large investment banking firms, like Goldman Sachs, Morgan Stanley etc., the investment banking wings of large commercial banks such as Citigroup, Deutsche bank etc. besides these, there are many boutique investment banks that offer lucrative careers.
Types of Investment Banking Jobs:
1. Mergers and Acquisitions (M&A):
M&A bankers specialize in providing companies with strategic advice when they plan to either merge with a competitor or acquire a smaller firm. The most fundamental and sound skill that these bankers require is Financial Modeling, which is what they base their suggestions or advices on. Highly ambitious individuals who are capable of working extremely long hours with great people skills, tend to pull out a 7 figure for salary as they progress their careers. Got the right skills? You might even become a legend executing some of the largest deals.
A more traditional role for Investment Bankers has been to assist corporations and governments raising capital, which falls in the purview of the underwriting department. Bankers in this department specialize either in debt or equity and might also specialize by industry. These bankers need to be able to liaison with their clients in order to determine their capital needs while also working closely with traders and security sales personnel inorder to determine the market situation and the price that any security may command in the market. As with most other investment bank jobs, underwriters might end up spending extra hours, when working on a deal.
3. Private Equity:
private equity jobs are currently the hottest and most prestigious positions in all of finance. The massive compensation and the bonuses on the senior members of the firm contribute to this craze. While these jobs can be found within an investment bank, there are many prestigious venture capital firms such as Black-stone, KKR and TPG, to get into which one would need to have excellent track record in investment banking or if you’re a fresher you need to have more than excellent academic record and it helps if you’re from a top tier university.
4. Venture Capital:
While Private Equity firms invest in established companies, Venture Capital firms specialize in investments in New or Startup companies in various industries that are particularly fast moving and growing (eg: Bio-technology, green technology, ecommerce etc.,). While many of these companies fail, the payoffs from few winners outweighs the losses from many failures. The single most skill that people working in Venture Capital must possess is the ability to identify the right opportunities at the right time. Many wish to get into venture capital for this thrill that the jobs have to offer. The compensation as with other investment banking jobs is handsome and the work hours are just as long.
Almost all of these jobs demand strenuous working hours but the compensation more than makes up for it. because of the potentially large pay-offs, competition for these jobs is very fierce. Even though many investment bankers come to their career from prestigious universities and with an MBA. If you develop the right skills like financial modelling, you should explore these enriching careers.
If you’re looking for investment banking jobs, you should specifically look for any of these different types of investment banking jobs