Investment Banking Career Path: Analysts

-

What Do Investment Banking Analysts Do?






Once a full-time analyst joins an investment bank, they're quickly assigned one or more tasks, which generally fall into two categories:

1. Pitches:

Analysts create a 'Pitch Book,' a detailed slide deck with a deal recommendation presented to clients.

2. Live Deals:

When a client agrees to work with the bank, the deal goes 'Live.' Analysts play a crucial role in this stage.

Analyst Day-To-Day Tasks:

Analysts are the backbone of the team, working under the guidance of senior and mid-level bankers. They handle:

  • Creating Presentations: Crafting detailed and persuasive presentations.
  • Financial Analyses: Developing and maintaining complex financial models like DCF and LBO analyses.
  • Deal Logistics: Coordinating the logistics to execute live deals.
  • This role is demanding, with analysts often working 80-100+ hour weeks. The high stakes and intense competition on Wall Street require quick and efficient work to win over clients, typically CEOs making critical decisions about mergers or capital raises.

Why Take on Such a Demanding Role?

It’s a fair question, considering the workload. The main reasons are:

1. Pay:

First-year analysts at top-tier banks earn between $120,000 – $170,000 annually, with recent increases of $10,000-$15,000.

2. Exit Opportunities:

After two years, analysts often move to higher-paying roles in Private Equity or Hedge Funds, doubling their investment banking salary.

3. Network:

Analysts build a network of 50-150+ high-achieving peers in their analyst class, invaluable for future career moves.

Investment Banking Analyst: Exit Opportunities

The biggest motivator for many analysts is the opportunity for lucrative and diverse career paths after their stint in investment banking.

Typical Analyst Exit Options:

  • Private Equity
  • Hedge Funds
  • Corporate Finance
  • Consulting
  • Entrepreneurship
In short, an analyst role in investment banking keeps nearly all career doors wide open.

Disclaimer: This guide provides a snapshot of the investment banking analyst role. While these roles offer significant rewards, the journey is challenging and highly competitive. Preparation, dedication, and resilience are key to succeeding in this demanding field.

  • An engaging animation can illustrate an analyst’s journey:
  • Start with a stick figure diving into stacks of paperwork (representing pitches and live deals).
  • Show the figure working long hours, with a clock spinning rapidly.
  • Transition to the figure receiving a high salary and shaking hands with various professionals (building a network).
  • End with the figure walking through multiple doors labeled with different career opportunities (Private Equity, Hedge Funds, etc.).
By following this path, you can set yourself up for a rewarding career in investment banking and beyond. Good luck!








Comments

Post a Comment

Best Blogs

IB Interview Questions: M&A : Level 1 M&A Questions

-
Image
1. Why do companies merge? While are many reasons that companies merge the underlying driver of most M&A deals to expedite growth and/or generate cost savings to create value for the owners of the business. When people say that M&A is an ‘art’ and a ‘science’, what does that mean? The science refers to the mechanical valuation methods (Comps, DCF, etc.), but the art is in making a judgment call on valuation based on the outputs of the various valuation methodologies. 2. Who can pay more when buying a company: a Financial buyer or Strategic buyer? Why? Strategic (i.e. corporate) buyers can typically pay more than Financial (i.e. Private Equity) buyers because strategic buyers typically have overlapping operations that can be removed post-merger to generate cost savings (i.e. Synergies). 3. When are sponsors and corporate buyers on equal footing? When a Financial buyer already owns a competing asset, they can generate synergies (which justifies a higher price) and thus are on mor...
Read more

Getting into Investment Banking: A Comprehensive Guide

-
Image
Introduction Breaking into investment banking (IB) is no small feat, whether you're pre-MBA or post-MBA, from a target or non-target school. While high GPAs and test scores are standard, they are often not enough to stand out. Here’s a strategic approach to help you embark on a successful investment banking career. 1. Network Extensively When your application lands at an investment bank, it’s usually reviewed by a small team of bankers responsible for recruiting from specific schools. Given the competitive nature of this field, networking is crucial. Why Networking Matters: Decision-making bankers are more likely to advocate for you if they know you. Especially vital for non-target school students. Engage with alumni and other connections at your target firms. How to Network: Start reaching out to analysts and associates a few months before core recruiting starts. Look for non-target alumni if you're from a non-target school; they often help each other out. Demonstrate Interest...
Read more