Investment Banking

WHAT IS INVESTMENT BANKING?

If we first look at the functions that an investment bank performs.

  • Raising Capital and Security Underwriting – the bank is the middleman between the company issuing securites and the buying public.
  • Mergers and Acquisitions – banks advise buyers and sellers on the whole process of buying or merging companies – from business valuations, pricing etc
  • Sales & Trading and Equity Research – banks match up buyers and sellers as well as buy and sell securities out of their own account to facilitate the trading of securities
  • Back office functions – less glamorous perhaps but absolutely essential to the running of the bank especially in a highly regulated environment. Includes risk management, financial control, corporate treasury, corporate strategy, compliance, operations and technology.

What you will be doing within the bank depends on which team you are placed in. There are more “healthcare focussed” parts as most banks have dedicated healthcare equity research teams.

HOURS AND PAY

Salaries start at around £40k per annum plus benefits as an Analyst.

In the beginning especially, expect your hours to be long. Working 100 hours per week would not be unusual.

For those that make it through the early years, it is undoubtedly a high reward culture.

HOW TO APPLY

Before doing anything, think about whether you have contacts already that you can use to “get a foot in the door” at the bank.

You also can apply directly or through a recruiter.

Before applying, know exactly why you want to go into investment banking, what department you want to work in, and immerse yourself completely in the world of finance through reading high quality financial papers and magazines.

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