Investment Banker Career
Considering a career as an Investment Banker? Find out all you need to know to decide whether this career is right for you.
- What does an Investment Banker do?
- How to become an Investment Banker?
- What is an Investment Banker's Salary?
- How does the future look for an Investment Banker?
What does an Investment Banker do?
The role of an Investment Banker in the corporate world is to help corporations make successful decisions with regard to large financial deals.
Investment Bankers are typically in charge of orginating the plans for financial activity such as mergers, acquisitions, money raising, etc. Investment Bankers are often the ones who are proposing deals in the first place due to their expertise in the field.
There are three main areas Investment Bankers will work in: 1.) Mergers and Acquisitions, 2.) Debt Capital Markets and 3.) Equity Capital Markets.
As an Investment Banker, rising to the autonomous position of creating and suggesting financial deals to clients will take some time. Many Investment Bankers begin as analysts and after a few years will move to the associate level. After a few years at the associate level, an Investment Banker will then take the role of a VP. At this point, the Investment Banker will begin having more contact with clients as well as propose more of their own ideas.
Investment Bankers who enter the field with MBA degrees in Finance or a related field often bypass the analyst stage and quickly rise through the associate level. Since much of the Investment Banker's reputation (as well as salary) is based on performance, those with a strong knowledge of the business and who are motivated to succeed can quickly rise through the ranks.
As an Investment Banker candidate, you will need to have many attributes to succeed. You will need strong mathematical and analytical skills for working with financial models and addressing all financial aspects of a corporate deal. You will need very good interpersonal and communication skills for presenting ideas for financial actions. You will need to be highly motivated and have confidence in your abilities to perform.
The career of an Investment Banker is very demanding yet highly rewarding personally as well as financially. Success in this industry is usually a function of highly refined personal skills, an advanced level of education and motivation.
How to Become an Investment Banker?
Educational requirements may vary slightly depending on the company, the area you wish to work and your previous work experience.
For most Investment Banking careers, the minimum educational requirement is the completion of a Bachelor's degree. However, many organizations demand their Investment Bankers begin with a Master's degree or MBA in Accounting or MBA in Finance.
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Beyond a quality education and the development of skills necessary to succeed as an Investment Banker, you will need to learn where to gain experience by finding career opportunities.
You will find many career opportunities on individual company websites. The following portal hosts a comprehensive list of Investment Banking advisory firms in every state, AdvisoryFirms.com. However, you may have faster results if you contact a local recruiter. You may also find Investment Banking openings under newspaper or online classifieds (Craigslist or Monster.com).
What is an Investment Banker's Salary?
As an Investment Banker, your salary can vary significantly depending on your level of experience, your level of acquired education and size of the company you work for.
The average starting salary* for Investment Bankers is around $134,000.
For Investment Bankers with 5 years of experience, the average salary is around $300,000.
Average salaries can reach over $1,000,000 for Investment Bankers who have successfully performed in the industry for over 10 years.
In order to boost yourself to this level of success, you will need to perform highly, develop years of experience at a respectable company and lastly, earn yourself an advanced degree.
Request information from some of the top online schools in the United States. Online schools are becoming more popular for the working professional and are already highly respected in the business arena.
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* Source: Princeton Review Salary Survey www.princetonreview.com
How does the future look for an Investment Banker?
With higher levels of competition in all industries, volatility in the marketplace is the norm. Demand for experts in fields dealing with debt and equity markets as well as with Mergers and Aquisitions (M&A) is constantly on the rise.
This trend is expected to continue into the future. Those with the highest levels of education and who have the best performance track records will have the most options when looking for employment. They will also enjoy the rewards of tremendously large salaries.
The future looks bright for the Investment Banking profession, so go ahead and get started!
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