Responsibility Early : Analysts are provided with loads of worthwhile responsibilities early in their career.
Respectful Profiles : The eyebrows give a miss when the profiles are shared with the society as Investment Bankers are respected world over.
Pay Packages: Attractive salary packages comprising of heavy bonuses is commanded by the Investment Bankers.
Advanced Learning Opportunities: Such profiles help the Investment Bankers to learn far ahead and deep as compared to their counterparts in other profiles.
Steep Learning Curve : Learning is intense & analysts work with some of the brightest & most demanding people and profiles. The knowledge and the profile showcases the resume in a different manner.
Skill development : The skill sets which get developed in such career path is unique and unparalleled.
Career Foundation : The course provides a solid basis to develop & continue a career in finance – possibly moving into Private Equity or Venture Capital in the future. (Typically analysts are head hunted by PE or VC firms at the end of their 2 year stint). Exit opportunities are attractive. Some even move into the entrepreneurial arena where their financial knowledge is extremely valuable.
| Banks | Corporates/BPOs/KPOs | Consultancy Firms |
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The Major profiles for Investment Banking are as follows:
Mergers and Acquisitions (M&A)
Mergers and Acquisitions Bankers specialize in providing strategic advice to corporations seeking to merge with a competitor or buy a smaller company. Such Bankers need to have solid base of financial modelling skills in order to ensure that deals make strategic and financial sense. Bankers are also required to possess client facing skills, particularly at senior levels, where their nature of profiles and designations demands them to interact with many high-profile executives. Most M&A Bankers work for extreme long hours, and are very well compensated for the same. Some Mergers and Acquisitions Bankers eventually attain near legendary status, thanks to their ability to initiate and complete large deals.
Underwriting
One of the primary traditional functions of investment banks has been to assist corporations and governments in raising capital. This function falls upon the Underwriting Department. Bankers in the Underwriting Department usually specialize either in debt or equity and may also specialize by industry. These bankers need to effectively liaison with their clients in order to determine their capital needs while also work closely with traders and security salespeople in order to determine what sort of demand there might be in the marketplace and what kind of pricing the securities would command. While traditionally this field has been dominated by Investment Banks, over the past decade large universal banks have used their balance sheets to gain market share relative to their smaller rivals, particularly in debt underwriting. As with most Investment Bankers, Underwriters work for large working long hours, particularly when working on a deal.
Private Equity
Private Equity jobs are amongst the most prestigious positions in finance world today. Some of these positions can be found within an Investment Bank but most are found at specialist firms. Some of the largest and most well-known private equity firms include Blackstone, KKR and TPG. As with most Investment Banking jobs, the hours and work load at a private equity firm can be brutal, but the compensation can be massive. Because private equity firms traditionally keep a portion of any profits they generate on deals, successful firms can bestow great wealth upon senior employees. As such, competition for jobs at the premier private equity firms is intense, and most successful applicants either have prior experience at a large investment bank or possess superior academic credentials.
Venture Capital
While Private Equity firms invest in established companies, Venture Capital firms specialize in providing capital to new or startup companies. Generally these companies are still relatively small and have not yet accessed the stock market. Many of these companies will fail, but because venture capitalists get in at such an early stage of development, the ability to produce outsized gains on the few winners theoretically outweighs a large number of losers. Many Venture Capital firms focus upon rapidly changing industries such as technology, biotech, or green technology. For these reasons, individuals that not only enjoy crunching numbers and deal making but also have an aptitude for new technologies will generally do well in a Venture Capital firm. Venture Capital also has the ability to provide the thrill of seeking “the next new thing” which may appeal to some individuals. As with similar jobs, the workload can be heavy but successful venture capitalists can do extremely well for themselves, particularly during times when technology is thriving.
