Just about every other profession one needs to have the same passion and vigor to be an investment banker.
And to be a successful one involves being well-equipped with all the happenings in and around the field. So, what does an investment banker do? An investment banker is the one who helps clients( such as, corporations or government) with three things mainly: Mergers and acquisitions which involves buying and selling of companies or assets, Equity Capital Markets in order to raise the capital of the organisation and undertake the underwriting deals and lastly Debt Capital Markets which includes raising capital through debt by issuing bonds and other forms of debt financing.
Pursuing the right education:
It all begins here. To become an investment banker one needs to preferably have greater knowledge and understanding in the field of banking. To attain this a Bachelor’s degree in finance, economics, business or mathematics is quintessential. These days as it is witnessed almost everywhere that people from different backgrounds also get into investment banking, but only those with a good understanding of the subject stand a chance.
Many investment banks often take in students who are pursuing a degree as interns and this involves doing the same work as that of an analyst but under the guidance of a mentor. An internship at this period of college also means to help one in building the networks as well as gain experience in the field for future references. Internship is a serious deal because it serves as the pathway for getting a full-time employment opportunity. Hence it’s important to have the right attitude throughout the internship period remains intact to gain the exposure and experience.
Starting as an investment banker:
Once done with the degree it is often recommended to have one or two years of experience in an entry-level job position and enrich the professional experience in the field and build a professional network. Most of them start as investment banking analysts wherein they are given training and are thus introduced to financial modeling, accounting and analysing the market and give a report of the same which is used for making financial decisions.
A higher degree such as a masters MBA( Master of Business Administration) degree is a common trait that is seen among many investment bankers after laying their stepping stone in the field. But it doesn’t just end there because it is equally important to get a degree from a top-tiered business school. To name a few, in UK, London Business School, London School of Economics, MIT Sloan School of Management in the US and Edhec Business School and ESCP Business School in France.
The focus should be on the best schools as they attract recruitments from large investment banks and so will your chance of getting noticed increase. Thus, with the additional education and job experiences in the field, one can land themselves a job for an associate’s position.
How much does an Investment Banker’s earn?
Investment Banker’s job is a boom and so expecting a six digit salary at the entry-level is no harm. The median salary of an investment banker is about $90k per year. This might increase depending upon the work experience and the post one gets promoted to from being an analyst to associate, associate to Vice president and as one moves higher up the ladder.