Investment Bankers are finance gurus who help clients increase their capital. They can do this in several different ways. They may raise capital by underwriting or by distributing stocks and bonds. They may also maintain markets in securities, and advise clients on issuing, buying, and selling securities.
Investment Banker Requirements
Obviously, if you’re thinking about an Investment Banker career, you will need to have sharp math skills. You will also need to be skilled at creating spreadsheets and presentations. You will also need to have good communication and people skills.
You will also need to be able to thrive in a breakneck-paced and fiercely competitive environment. (Think constant adrenaline rush.) Investment Bankers work long hours under big stress.
Education and Training — How to Become an Investment Banker?
Most Investment Bankers hold at least a four-year degree. They usually start out with two to three years at a large global bank, often working as Financial Analysts, learning the ropes, and working their way up the ladder.
At this point, many potential Investment Bankers return to graduate school to earn their MBA. They may then seek employment at a higher level.
Note that this is a fiercely competitive job market. Those who did the best at the best schools will have significant advantage over those who did not.
Investment Banker Salary — How Much Do Investment Bankers Make?
According to an article in Forbes, the average annual income (including bonuses) for a First Year Associate Investment Banker was $159,900. A Third Year Associate averaged $209,700, while Managing Directors averaged $409K. Remember that this is an average. On a good year, a Senior-level Investment Banker can earn a million dollars.
Investment Bankers make lots of money, but they earn it. Many work 100 hours per week under high stress.
Of course, many Investment Bankers work for the big banks like Goldman Sachs and Morgan Stanley. Some Investment Bankers work within the investment departments of commercial banks. And still others find work at small, chic “boutique” investment banks. Large companies (e.g., GE) sometimes employ their own Investment Bankers.
Investment Bankers may find work in mergers and acquisitions (M&A). Some find careers in underwriting departments. Some Investment Bankers build careers in private equity, often at specialist firms (e.g., Blackstone, TPG).
If you’re looking for an Investment Banking career, get a quality education, work tirelessly, and network like crazy.