How do I get started in investment banking? (2024)

How do I get started in investment banking?

Start with an undergraduate degree with a major in finance, economics, or business. Pursue an advanced degree, preferably an MBA. Get an internship, volunteer opportunity, or first-entry job in investment banks and firms. Network like crazy to find a job in top investment banks.

Start with an undergraduate degree with a major in finance, economics, or business. Pursue an advanced degree, preferably an MBA. Get an internship, volunteer opportunity, or first-entry job in investment banks and firms. Network like crazy to find a job in top investment banks.

The top banks and firms really value hard work, so they're likely to hire candidates who earn high GPAs because it's a good corrollary. Therefore, your minimum GPA should be 3.50 to even be considered for a position; though, I'd recommend 3.70+.

Becoming an investment banker requires several years of higher education in addition to licensure. It also requires strong mathematical and analytical capabilities, which may be challenging for some people. In addition to a bachelor's degree, investment bankers may need a master's in finance or an M.B.A.

Investment bankers are notorious for working long and demanding hours, with work weeks well exceeding 40 hours being the norm for entry-level investment banking analysts. In a competitive culture where putting in extra-long hours is regarded as a badge of honor, a 9-to-5 routine is pretty much unheard of.

Most investment banks prefer degrees in finance, accounting, business administration, and other business disciplines. Undergraduate degree subjects are less influential in the hiring process if a candidate has a master's degree in business administration, finance, or another highly relevant subject.

The demand for coveted positions in investment banks consistently exceeds the available supply, making it a highly selective field. Statistics indicate that acceptance rates for top investment banks, such as JP Morgan and Goldman Sachs, typically range between a mere 3% to 5%.

But if you're 30, graduated from university at 22, and have 8 years of full-time experience, along with a mid-level position at a large company, it will be more difficult. It's still possible, but the success probability is much lower.

The field of investment banking has many people who want to be highly successful, and your peers are likely to work just as hard as you. The job requires intelligence and analytical capabilities, and colleagues and clients may need to perform at a high level to maintain their competitiveness.

Goldman Sachs does not give a specific minimum GPA requirement, though some sources suggest a GPA of at least 3.6 is preferred. Additionally, you may need to show relevant coursework and hard skills for certain programs.

What is the lowest position in investment banking?

Candidates must demonstrate academic strength – a minimum 3.2 GPA for juniors and a minimum 3.5 GPA for freshmen and sophom*ores, strong teamwork, communication skills and a high energy level.

It is possible to become a millionaire as an investment banker, but it is not easy. Investment bankers typically earn salaries in the $200,000 to $700,000 range, with bonuses that can bring their total income up to several million dollars per year.

Of the two careers, investment banking requires greater quantitative acumen and skills in math. The educational requirements for becoming a lawyer are much more rigid than those for becoming an investment banker.

Investment Banker Salary and Bonus Levels: Analysts

Based on payouts in mid-2023, Analyst pay has held up fairly well. I listed $190K as the top of the range above, but plenty of Analysts earned above that, especially Year 2 Analysts at places like Guggenheim, Moelis, Perella Weinberg, and Evercore.

Have you ever heard of Goldman Sachs' 15-minute rule at Goldman Sachs? It means you have to respond to an email in 15 minutes or less no matter what. It doesn't matter if you: - showering - hiking in the mountains - attending your son's wedding - saving someone from a drowning vehicle Unreasonable?

The hours tend to be longest for more hires (e.g. analysts and associates), but even at senior levels, one must be ready to log long hours if the situation calls for it. As a former investment banker, I've often said the hardest part of the hours was the unpredictability.

Average Hours Worked per Week: 98 Hours. Average Analyst Bed Time: 3 AM. Average Hours Slept per Night: 5 Hours.

University of Pennsylvania is no surprise and they are very clearly the overall best school for finance placement. UPenn dominates investment banking recruiting and even sends dozens of people directly into great private equity firms and hedge funds every year.

Master's in Finance: MIT, Princeton (more of a quant program), UT Austin, UVA, Vanderbilt, WashU, Notre Dame, USC, Claremont-McKenna, and maybe a few others (best to look at employment reports here). MBA: The M7 schools, Yale, Stern, Haas, Ross, Tuck, Fuqua, Cornell (Johnson), and possibly a few others in the top ~20.

How many hours a week do investment bankers work?

An average investment banker works for around 80 hours a week, but some weeks this may increase to around 100 hours a week depending upon certain situations. The working hours differ based on the position of the investment banker. An investment banker analyst works the longest, around 80 hours a week.

Investment bankers make money through the fees charged to their clients. As discussed above, this includes underwriting fees for arranging the sale of securities and advisory fees for providing strategic guidance.

Age Range: It's nearly impossible to reach this level before your early 30's, so we'll say 35-50 for the range. Few MDs continue working until the official retirement age (65-70); it's a stressful, high-pressure job, and past a certain net worth, it's just not worth it.