The compelling field of investment banking just a cannot help itself from enticing a large stratum of dexterous white-collars in becoming a part of it. Not only being an investment banker is about managing the most intriguing work in the finance business but, it is also an inexplicably lucrative position in terms of the money they earn and lifestyle they get to maintain.
This article will provide you relevant information on investment banking, how it works and the interesting roles and career paths that one can take in this very sought-after domain.
Investment Banking Roles
An investment banker’s career advances along a standard path. Here are the positions in Investment Banking listed in ascending order:
- Managing Director
However, there are a number of banks that call these positions by a plethora of different names and have a few extra levels in the hierarchy. For instances, there are times when investment banks separate Vice President from Senior Vice President. Also, in some cases, the Director position is divided into Executive Director and Director. But, irrespective of the names that are given to disparate roles, the job functions are generally the same.
In case, you have just completed your graduation and you plan to apply to banks keeping an aim in your mind of landing the position of an investment banking analyst. Presuming you perform well, show an interest in sticking with the firm, there are chances that you get promoted to the associate role, regardless of the fact that whether you have a master’s degree or not.
However, there are not many banks who hire non-MBAs for the designation of an associate. If you own an MBA, then you can start your career as an associate and work hard in order to move up to the level of the Managing Director when the time comes.
The Investment Banking Analyst
Students belonging to undergraduate institutions are usually the ones to join investment banks for a certain two-year program. Out of them, the best performers are typically promoted in a three years’ time frame to the post of an investment banking associate.
The Investment Banking Associate
In most instances, Investment banking associates get recruited out of business management programs (MBA) or in-house analysts are promoted. Customarily, bankers stay at the level of associate for almost three to four years before being promoted to the role of Vice President.
Associates and analysts are close-knit and work together. The associates keep a check over the performance of analysts along with assigning them with tasks.
The Senior Bankers
Senior bankers mainly source deals along with maintaining relationships. The Senior bankers own a broad range of work backgrounds spanning from corporate executive management to investment. Besides developing relationships, the senior bankers have a profound understanding of the industry scenery at an extremely comprehensive level and they have the ability to anticipate deals within the sector. So basically, with changing paradigms in the sector, they predict when a company would be in need of raising capital.