Is Investment Banking a Good Option as a Career?

Is Investment Banking a Good Option as a Career?

Is Investment Banking a Good Option as a Career?

Career planning is something an increasing number of people are doing and at different stages of their life.  From teenagers approaching college to people in their fifties who want something different for their later working years, a career plan can work well.  When considering what kind of career you want, it always pays to know more about the job itself and what the expectations of it will be.  Here we look at an investment banking career.

Types of investment banking jobs

Is Investment Banking a Good Option as a Career?

One of the first things to consider when looking at becoming an investment banker is the kind of jobs that are within the career.  One of the main areas is called underwriting – this is where bankers specialise in areas such as debt or equity and may even specialise by industry.  These are the people that companies and businesses come to in order to raise money for their business for one reason or another.  The job involves liaising with clients to decide on capital needs while also working with traders and securities salespeople to look at marketplace demand and pricing issues.

Mergers and acquisitions is a specialist area of investment banking and works with companies who are seeking to merge or acquire other companies.  A good background in financial modelling skills is needed for this kind of job along with the ability to liaise with clients of all types to make those deals happen.

Venture capital is the money provided to new companies to start their business and bankers specialising in this will generally work with small companies.  Their job is to assess the company and while there will be failures, the banker looks at the bigger picture in terms of successes and failures as well as looking at different industries.

Finally, the most prestigious investment banking career path is the one to private equity jobs.  These are the ones found in banks and in specialist companies who are often the superstars of the banking world but also the ones that lose the big money.  Prior experience in investment banking and relevant top level academic qualifications are key for this kind of role.

Is investment banking right for you?

Is Investment Banking a Good Option as a Career?

With any job, there are pros and cons and with investment banking, perhaps the biggest issue many have is the hours.  Many work 80-100 weeks with less time for a social life than in other professions.  This is offset by a higher wage than in jobs that are less demanding of time and the opportunity to progress through the ranks to the higher positions that have a better work-life balance and even better financial compensation.

You also need a certain type of personality to work in banking.  Skills and traits such as being very detail orientated are crucial as well as dedication and the ability to work on your own as well as with a team.  Obviously, a head for numbers is a good thing but self-motivation and organisation are just as important.  Investment banking isn’t a light, casual job but for the right person, it can be a satisfying and enriching one.

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