Investment banking positions, although hard, are among the most lucrative financial careers available. For one, you have a hand in real-time financial markets and can also assist enterprises, government organizations, and other clients in achieving financial success. You also have excellent prospects for future professional advancement and fulfillment; investment banking is an excellent stepping stone to more renowned positions in finance. Continue reading for more information on investment banking analyst professions, their job description, as well as their salary in the US. You’ll also learn how to build a good resume for an investment banking analyst from the samples in this article.
What Is Investment Banking?
Investment banks act as go-betweens for businesses and the financial markets. They assist their clients in becoming publicly listed, facilitating mergers and acquisitions, providing financial advice, trading stocks, and researching market trends to assist clients in making profitable financial decisions.
Investment Banking Analyst
Investment banking analysts are the workhorses of an investment banking team; they often come directly out of top undergraduate programs and join the bank for a two-year analyst program beginning in the late summer after graduation, with the option of a third year in some cases.
Job Description for Investment Banking Analyst
This investment banking analyst job description was inspired by the tasks specified by Goldman Sachs, Morgan Stanley, Credit Suisse, UBS, and also Barclays.
Key Responsibilities
- Creating numerous types of financial models to value debt and equity in mergers, acquisitions, and also capital raising transactions.
- Use a variety of valuation approaches, including comparable companies, precedents, and also DCF.
- Create product suggestions, private equity transactions, mergers and acquisitions, and valuations.
- Prepare and review materials used in client financing, such as investment memoranda, management presentations, and pitchbooks.
- Develop new and existing client relationships in order to grow the business.
- Due diligence, research, analysis, and documentation of active transactions are required.
- Create client portfolio presentations.
- A strong interest in current events, essential concerns, and pertinent news.
Relevant Knowledge, Skills, and Experience of an Investment Banking Analyst
- MBA (Associate job) or similar education, training, and work-related experience is required.
- Bachelor’s degree (Analyst job) or equivalent from a target institution
- Three years or more of experience (Associate position) in finance or business, preferably on the quantitative side
- Ability to operate with little supervision in a fast-paced, team-based setting.
- You’ll need a working understanding of transaction structuring and also needs closing principles.
- Excellent communication and networking abilities.
- Excellent research, quantitative, and analytical abilities, particularly in explaining market occurrences.
- Proven expertise with Microsoft Office programs, particularly Microsoft Excel and VBA.
- With frequent priority changes, you have the ability to organize and also track overlapping tasks and assignments.
- Excellent financial modeling abilities.
An Investment Banking Analyst Typical Credentials
An investment banker will be able to execute complex financial modeling and also have excellent quantitative skills. Because the job is at a fast pace, an investment banker’s ability to make a valuation on the spot while working on other issues will allow them to succeed.
i-Bankers frequently have a degree in finance or, in some cases, accountancy. A degree, on the other hand, does not guarantee a career in investment banking. The position requires tenacity, persuasion, networking, and communication abilities. Furthermore, graduates from top-tier colleges such as Harvard or Dartmouth, where liberal arts degrees are significantly more common, investment banks often go after them.
This investment banking analyst job description is based on the duties described by organizations such as Goldman Sachs, Morgan Stanley, Credit Suisse, UBS, and Barclays.
Career Opportunities for Investment Banking Analyst
Investment banking pays more for entry-level positions than most other degree programs. This, however, comes at the expense of long hours and a stressful working atmosphere. It is incredibly tough to enter into, and exceptional academics are normally necessary, but the prospects to advance a career are good. Basically, investment banking analysts stay in their positions for three years; after that, a plethora of career alternatives, including more senior posts in investment banking, private equity, venture capital, and hedge funds, become available.
Salary of an Investment Banking Analyst
What would be your salary as an investment banking analyst? The salary of an investment banking analyst is determined by where you live, how long you’ve been working, and also the organization you work for. The average investment banking analyst salary in the United States in 2020 is $86,643, however, this can vary greatly.
Investment banking analysts earn an annual bonus in addition to payment based on their own performance and the performance of their firm. This bonus is likely to exceed $50,000, and in some situations, it may even exceed your annual pay. Keep in mind, however, that while investment banking analysts might earn a lot of money right out of college, they also work extremely long hours. They work for about 90–100 hour weeks is not uncommon.
The Bureau of Labor Statistics (BLS) in the United States provides occupational data for financial analysts, which includes investment banking analysts. The BLS anticipates a 5% increase in job opportunities for financial analysts between 2019 and also 2029. This is roughly the same as the average job growth predicted by the BLS for all occupations from 2019 to 2029.
Resume for an Investment Banking Analyst
An Investment Banking Analyst sample resume will include job tasks such as offering financial research to senior bankers based on market trends and company-related drivers, as well as developing vetting documents to discuss transactions with product group partners. Resumes that include a degree in finance, accounting, statistics, economics, or business administration are preferable for positions as an Investment Banking Analyst. Here are some instances of investment banking analyst resume.
Example #1.
INFORMATION ABOUT THE CANDIDATE
4 years in the workforce
1 year working at this job
Mechanical Engineering, Finance, and Accounting, as well as BS Finance and International Business
Healthcare Investment Banking Analyst
Financial models were developed, including 3-statement merger, accretion/dilution, LBO, IPO, and also DCF models.
- Developed more than 50 presentations and pitch booklets for client executives and boards, giving financial and strategic guidance.
- Databases of antecedent transactions and trade comparables were kept up to date.
- Due diligence was performed, including industry and product research, and memos were written for internal committees.
- Analyzed the LipoScience (Nasdaq: LPDX) IPO and participated in bookrunner and management meetings.
- Created and distributed the Confidential Information Memorandum to investors for a major US healthcare services company’s LBO.
- MannKind Corporation’s $86 million equity raising and InSite Vision’s $22.2 million private placement were both supported.
Example #2.
INFORMATION ABOUT THE CANDIDATE
4 years of work experience
2 years on the job
MA (Master of Arts) English, BA (Bachelor of Arts) English
Gaming and Lodging Group Investment Banking Analyst
Over $2.5 billion in completed transactions, including buy/sell-side counseling and debt issuance, have been led by an analyst.
- Created leveraged buyout, M&A, and operating models, as well as in-depth market research that clients utilized to analyze potential acquisitions and debt and equity offers.
- In a class of 150 analysts, I was ranked in the top 15% and was offered a third-year job.
- Sell-side consultant on the $1.5 billion sale of Innkeepers USA, a 75-hotel network, to Apollo Investment Corporation.
- Coordinated the sell-side auction process with the Innkeepers’ leadership team.
- Innkeepers’ Board of Directors and public shareholders were given a draft fairness opinion.
- Herbst Gaming’s $400 million acquisition of MGM Mirage casinos was aided by a buy-side advisor.
- In collaboration with Herbst’s CFO, I created an operating model, conducted extensive due diligence on the target, and also drafted investment committee member
Why Investment Banking?
People frequently enter investment banking for incorrect reasons. If you are lured to a job only for the status and income possibilities, you will not be satisfied and may even burn out rapidly. The following are some of the reasons why investment banking might be a good fit for you:
- You’re curious in the abilities you’ll acquire as an investment banking analyst, such as Excel and financial modeling.
- You’d like to understand more about high-profile transactions, financial markets, and how businesses make financial decisions.
- You thrive in a fast-paced, long-hours work environment.
What is the typical experience required for an investment banking analyst position?
Experience in finance, economics, or a closely related field is preferred for an analyst position in investment banking. There is a possibility that a master’s degree in finance or business administration is required by some investment banks.
What is the difference between an investment banking analyst and an investment banking associate?
The analyst position in investment banking is the entry level position, while the associate position is the next step up in the career ladder. Associates in investment banking have more discretion and responsibility than analysts do.
What is the typical work/life balance for an investment banking analyst?
Analysts in investment banks often work long hours in a high-pressure environment, which can put a strain on their work-life balance. It’s true that it can be difficult to juggle work and personal responsibilities, but many companies now provide a range of options for flexible scheduling and other benefits to help their employees do just that.
How can an investment banking analyst advance in their career?
As an investment banking analyst gains experience, they are given more responsibility and may even take the helm of deals or projects. Gaining specialized knowledge of the industry through CPE or a master’s degree in business administration is also beneficial for rising to the ranks of investment banking analysts.
What are the benefits of being an investment banking analyst?
Gaining experience in high-profile deals and projects, working in a dynamic and fast-paced environment, and learning the ins and outs of the industry and the financial markets are just a few of the perks of a career as an investment banking analyst. Career opportunities for investment banking analysts may include promotion and the assumption of additional responsibilities.
Investment Banking Analyst FAQs
Is investment banking hard?
Investment bankers can work up to 100 hours per week on research, financial modeling, and presentation development. While offering some of the most coveted and financially rewarding roles in the banking business, it is also one of the hardest career choices.
Can you put personal investing on resume?
If you manage a substantial sum of money or routinely exceed the markets with your own personal portfolio, you should absolutely put this on your resume as it can reflect both your serious interest in the markets as well as your investment prowess (if you are outperforming the market.)
What does an investment banking analyst do?
An investment banking analyst assesses and researches investment alternatives in order to locate the one that best matches the needs of their business clients. Analysts in investment banking evaluate prospects and provide investment recommendations based on the needs and goals of their clients.
