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Finance jobs in investment banking generally involve working with governments, corporations and other large financial institutions to either provide them with strategic advice or to help them raise capital. Although many investment bankers may start out as generalists, most go on to develop expertise in a specialized sector or industry. The most common way to attain a finance job in investment banking is to graduate from an accredited university and work for two to three years at a large global bank. After which, an individual will earn a Master’s in Business Administration degree and either return to their former employer or seek higher-level employment at a new firm. Competition for finance jobs in investment banking is fierce, so those who are interested in this career paths should take their education seriously in order to boost their chances of a job offer.
Types of Finance Jobs in Investment Banking
Private equity jobs are some of the most prestigious careers in the world of finance. Although an investment bank can be a source of private equity jobs, most are found within specialist firms. As is the case with most types of investment banking jobs, the workload and hours at a private firm can be stressful, but the compensation almost always makes up for it. Successful private equity firms often take care of their senior employees since these types of institutions normally keep any profits they generate on the deals they make. For this reason, competition for these positions is fierce, and the most qualified applicants have superior academic credentials and/or prior experience at a large investment bank.
Whereas private equity firms invest in established businesses, venture capital firms focus on providing capital to startup or new companies. In most cases, these smaller companies don’t yet have access to the stock market. Many venture capital firms focus on changing and growing industries such as green technology, biotech or technology. The types of people who will do best at a venture capital firm are those who have both an aptitude for new technologies and a love of crunching numbers. As with similar jobs, the workload can be strenuous, but venture capitalists typically do well for themselves, especially during times of thriving new technology.
Investment banks help governments and corporations to raise capital, a responsibility that falls on the underwriting department, according to Investopedia. Bankers in this department may specialize by industry and either equity or debt. They need to work closely with their clients and be able to successfully determine their capital needs while simultaneously working with security salespeople and traders to determine demand within the marketplace. Bankers working in the underwriting department can also expect long hours on the job, especially if they are working on a deal for their clients.
Related Resource: What is Venture Capital?
Many of these positions require bankers to put in long hours at work, yet they typically reap the benefits of attractive compensation. However, even though many investment bankers go to prestigious colleges and universities and eventually earn a master’s degree, that does not mean that is the only way to enter this field. If someone is committed and believes that he or she has the required skills in order to be successful, it is worth it to explore a career and the various types of finance jobs in investment banking, regardless of his or her background.
