INVESTMENT BANKING
WHAT IS INVESTMENT BANKING?
Investment Banking is the most versatile and prestigious finance career one can pursue, and is the foundation for any high-paying position in the financial sector. There is no better way to become an astute investor than working as an investment banker. An investment bank can be a publicly or privately held firm that advises (mergers, acquisitions, divestitures, restructuring) and raises money for companies, governments and wealthy individuals.
WHAT ARE THE ROLES WITHIN AN INVESTMENT BANK?
An entry level investment banker works as a financial analyst, building financial models for company valuation while learning how to complete transactions. This involves meeting with companies to gather information, and working with the senior members of the firm. Investment banking Associates supervise and help Analysts and are responsible for their work. Vice Presidents collaborate with the Managing Directors, Analysts, Associates, and occasionally lead deals. Managing Directors are senior level investment bankers who source deals and allocate bonuses to the VPs, Analysts, and Associates in their group. A Senior Managing Director can run an entire division within an investment bank, and command over $20 million per year salary (including bonus).
WHAT IS MOST IMPORTANT FOR BEING HIRED AS AN INVESTMENT BANKER?
Financial modeling is the most important aspect of an investment banking analyst's job; a skill that is readily transferable to any other area of finance. All investment banks, hedge funds, and private equity funds are seeking financial modeling skills when hiring employees.
WHAT ARE BOUTIQUE INVESTMENT BANKS?
Boutique investment banks are smaller (ranging from a few professionals to hundreds or even thousands of investment bankers), more prestigious firms that specialize in any number of the products or services that bulge bracket banks offer.
WHAT DOES A BOUTIQUE INVESTMENT BANK SPECIALIZE IN?
Boutiques can be known for M&A (Evercore, Gleacher, Greenhill, and Lazard), restructuring (Houlihan Lokey Howard and Zukin), different stages of investment, different size investments (CIBC, Jefferies & Co.), and industry or geographical specialization (Allen & Co. for media, Cowen & Co. for healthcare, and Thomas Weisel Partners for technology). Working for a boutique investment bank can provide opportunities to take on more responsibility earlier in one’s career as boutique investment banks generally have a less regulated hierarchy and promotion guidelines than bulge bracket investment banks.
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