Investment Banking is the industry where large financial institutions deal with other large companies or corporations to help them achieve their business goals and meet their financial needs. It acts the middleman or Segway between companies and the public, or between companies and private institutional level investors.
Investment Banks have the ability to help raise money, both through debt and equity, along with the merging and acquiring of companies, and to help struggling companies restructure their business to become more efficient or profitable.
The Investment Banking industry has a hierarchy or ladder that people have to go upon in order to rise to the top and receive the large salaries that come with it. In order to move up that hierarchy requires certain amount of experience, skills, and relationships. There is no way around it, or way to fast track it, just through hard work. The hierarchy starts with the Investment Banking Analyst.
What is Investment Banking Analyst ?
One might wonder, what is an investment banking analyst? An investment banking analyst is the entry level position within investment banking who is tasked with doing all of the tedious, low level work that is essential to the business. A lot of this consists of inputting data, formatting documents, and helping the people above you with their assignments.
As an investment banking analyst, you’ll be working anywhere between 90-110 hours a week. Yes, we said the correctly, 90-110 hours per week. The time commitment is one of the toughest parts of being an investment banking analyst. Because there’s work that needs to be done, and no one wants to do it, paired with the fact that the people already in investment banking already had to do it, they make everyone do it. Most nights will be spent at the office, and we’ve heard of stories where the norm is to leave the office around midnight during the week.
The beginning of banking is structured this way to force analysts to learn, buy in, and see what they are made of. Banking is an industry that’s fast passed, high pressured, and brutal. It teaches you a lot of what is going on your team or in in your sub sector. By being throw into the mix, you’ll see and start to understand what’s going on behind these incredibly large and complex financial transactions.
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The investment banking analyst position prepares you for what’s to come. It is the lowest on the totem pole, and therefore the worst part of the industry, but it shows your commitment to the company, and whether you can handle the industry.
The Analyst position weeds out a lot of candidates and employees because it’s meant too. They make life miserable and difficult because they had it that way, and it’s the culture of banking. It’s going to challenge you and be a constant struggle. Odds are it’ll make you consider leaving, and asking why you’re doing something like this, but that’s when you have to truly believe in what you’re doing, and the future it will produce for you,
Sacrificing your social life, time with family, and free weekends is something to be expected as an investment banking analyst. The investment banking analyst position really requires a true and sincere level of commitment. You have to truly want what’s on the other side of the analyst life, if you’re going to make it through it. There is a reason why investment banking has the level of prestige and respect that it does, and it’s because of things like this. They require you to outwork all of your peers and invest most of the time you have to your position, company, and career. It’s tough for some people but comes down if you truly want the prestige and accolades that come with it. If the answer is yes, then you’ve got to fight through and persevere through the difficult times.
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Another question that one might ask is what does an investment banking analyst do?
Investment banking analysts are doing the work no one at the company wants to do. That means inputting information, formatting presentations, verifying documents, and anything that’s asked of you. A lot of it is tedious, and boring to say the least, but someone has to do it.
As the person on the bottom of the totem pole, you’ll be doing the things your superiors don’t want to do but have to get done. It’s important to the company that the numbers in models are correct, that the presentations are formatted professionally, and that all the little details are done correctly.
With that being said, the investment banking analyst position opens a ton of doors for you in your career, and down the line. The high paying jobs, which put you on great paths for your future have a lot of people who come out of investment banking. It breeds a certain type of person, and employee which companies love.
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Almost any company, especially the high profile, prestigious companies will be interested in you as a potential employee. Companies love banking because it teaches candidates how to work at a high level, how to sacrifice, and what type of work you have to produce. You’ll be able to get your foot in the door at any of the companies or positions you really want to work at. Investment Banking is a great route for people to open doors for themselves and give them options available on to the select few in investment banking.
If you’re looking to get into investment banking, you’ll be starting out as an investment banking analyst. It’s an industry and career that is going to test you, and push you to your limits, but if you’re able to make it through the tough times can be incredibly rewarding professionally and financially.
Keep in mind it won’t be easy and is something that a lot of people aren’t able to do, but has the potential to be something that puts you on a great path. If you see the value in it, and the light at the end of the tunnel, the one to two years you sacrifice could very well be worth the investment.