Finance Career Options in Investment Banking

Investment banking involves working with individuals, institutions and corporations to find the best investment opportunities to make money. Investment banking also helps these entities to raise capital or find financing in order to make these investments. Most investment bankers begin their careers as generalists and further specialize to specific areas with more experience.

The most common career path for investment bankers is graduating with a bachelors degree, working in a global bank and returning to graduate school for an MBA before joining a firm at a higher level. Professional certifications such as CPA are not common investments as they are in other fields of the finance industry. Some of the investment banking careers includes:

Mergers and Acquisitions Bankers

These are the professionals that bring together two or more corporations of business. They give strategic advice to companies to merge with their competitors or buy smaller companies. Good financial modeling skills are necessary to make sure these deals are successful and profitable. Good communication skills are also important because M&A bankers interact a great deal with clients. You can expect to interact with high-ranking executives and it is crucial to have great client facing skills. Working as an M&A banker can earn you up to seven-figure compensation in a good year.

Underwriting

One of the focus areas of investment banks is helping corporations and institutions to raise capital and this falls in the underwriting department. Working in underwriting, you can specialize by industry, most common areas being debt and equity. Underwriting bakers have to determine the kind of demand there is in the marketplace and work with clients to determine their capital needs. As with many investment banking careers, underwriting can lead to working long hours but the remuneration is good.

Private equity jobs

Working in private equity is one of the most lucrative jobs in the finance industry today. Private equity jobs can be found in investment banks or specialist firms. Private equity firms keep a portion of the profits generated from deals, therefore you can match the long working hours and work load with massive compensation. Superior academic credentials and previous experience with investment banks is necessary to get a job in private equity because the field is very competitive.

Venture capital

Venture capital firms focus on raising capital to start up companies. Venture capital firms focus on fast changing industries such as technology because there are new innovations every day. As a venture capitalist, you need to find these new technologies and innovations to develop a company and make profits. Having the ability to discern which companies have a shot at success in the industry is necessary in choosing the right companies to work with.

Trading in Cars

Trading vehicles is a popular practice today. People buy and sell cars all the time. Finance professionals help individuals with vehicle leasing and financing. Vehicle dealerships also hire finance professionals such as accountants and financial managers to help keep the business finances in check.

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