Investment Banking Careers

Many investment banks favor internships as a recruiting technique because it is like an extended job interview. 

And aspiring investment bankers can use internships to accomplish three main things:

1. Win a full-time offer.
2. Decide whether or not investment banking is for you.
3. (For early-stage internships) Start to build a sequence of work experience you can use to answer the “walk me through your resume” question you’re likely to get in investment banking interviews. 

For more information on internships, check out our full Investment Banking Internship Guide.

So you make it through an internship and you’re now an investment banker.  What comes next? The Investment Banking Career Path is somewhat defined across the industry.  Here’s the typical career progression:

• Intern or Summer Intern – Assistant to the Monkeys
• Investment Banking Analyst – Monkey
• Investment Banking Associate – Better-Trained Monkey
• Vice President (VP) – Manager of the Monkeys
• Director or Senior VP (SVP) – Manager and Rainmaker-in-Training
• Managing Director (MD) – Rainmaker

Investment bankers earn well – especially at the upper echelons.  If you love detail and league tables, see our full article on Investment Banking Salaries.

For now, here’s a summary of what to expect at each level in a front-office role at a big firm in New York (pay will be lower in other regions):

As all entry-level investment bankers will start as an analyst, it’s worth looking at what you’ll actually do on the job when you start. 

As an Analyst, your job is to do whatever it takes to support senior bankers in winning and closing deals, even if that means doing ridiculous tasks that have nothing to do with accounting or finance.

The “average case” for your time on the job might look like this:

• PowerPoint for Pitch Books and Other Presentations: 50%
• Random and Administrative Tasks: 30%
• Excel-Based Financial Modeling and Valuation: 20%

If this looks mundane, that’s because it is.  Also, the work hours are long, typically 70-85 hours per week.  

If all this doesn’t sound very attractive, rest assured that the Analyst role has at least 3 upsides:

1. It’s not a long-term position.  This is a stepping stone to more senior roles in investment banking, private equity or hedge funds, where the work is more stimulating. 
2. You earn a lot – more than just about any other job out of university.
3. You gain access to great Exit Opportunities in a wide variety of sought-after fields.

There are 4 main pathways to getting a job in investment banking:

1. As an undergraduate, ideally at a top university.
2. As a recent graduate.
3. At the MBA level.
4. Beyond the MBA level.

The most viable pathways are the first 3 listed here: at the undergraduate level, within 1-2 years of university graduation, or at the MBA level.  

Regardless of your pathway, you will need a sequence of academic, work, and leadership experience that demonstrates your interest and commitment in order to break in.

We cover this process in-depth in our article on How To Get Into Investment Banking.

A few other topics you may be interested in:

• If you have a feeling that you may be ‘too old’, read about Age and Investment Banking here.
• See the differences between investment banking in New York vs. Chicago vs. San Francisco vs. Los Angeles vs. Houston here.
• Or study up on Investment Banking Fitness.

Investment banking is a highly competitive and sought-after field.

Banks have shifted from “hiring raw graduates and training them on the job” to expecting new hires to be able to hit the ground running and add value from day one.

So, you have to prepare for a career in investment banking well before you even set foot in the interview room.

Some of the courses offered by Mergers & Inquisitions and our sister site Breaking Into Wall Street include:

• Core Financial Modeling – Learn accounting, 3-statement modeling, valuation, and M&A and LBO modeling from the ground up with 10+ global case studies
• BIWS Premium – Learn Excel & VBA, financial modeling, and PowerPoint to accelerate your on-the-job performance
• BIWS Platinum – Our entire collection of courses, all for a deep discount off the regular price

Completing these courses will help you win interviews and job offers for roles that pay $150K+, and position you for top-tier exit opportunities such as private equity. Learn more about Breaking Into Wall Street here.