Investment Banking
What is Investment Banking?
Investment banking is a field within finance that focuses on optimizing company's and government’s capital and making large financial transactions. Specifically, they advise their clients on deals such as Mergers and Acquisition, which is when a company either merges with another or a company buys another, and IPO’s which helps with calculating how much to sell a stock for when first going to the stock market. All in all, their goal is to help organizations grow or help them manage financial challenges.
Popular Investment Bankers
Jamie Dimon: CEO of JPMorgan Chase, one of the most influential leaders in global finance.
Lloyd Blankfein: Former CEO of Goldman Sachs, known for shaping modern investment banking culture.
Raymond McGuire: Former vice chairman of Citigroup, major figure in corporate finance and mergers.
Ken Moelis: Founder of Moelis & Company, respected in the world of strategic advisory and dealmaking.
Barbara Byrne: One of the most prominent women in investment banking, former vice chairman at Barclays.
History: How It Started and Where It Is Now
Investment banking began in the 1800s, during the industrial revolution, with banks like J.P. Morgan helping railroad companies and other large industrial companies raise money. Over time, the industry grew into a large variety of firms across the globe advising organizations on public offerings for IPO’s, mergers and acquisition options, and large transactions. Today, investment banking sits at the center of global finance and is one of the most competitive fields in finance. As they help these organizations grow and expand, they also bring in large amounts of potential employees which makes Investment Banking so competitive yet so rewarding.
Impacts of Investment Banking
Investment banking plays a major role in shaping the global economy. It helps companies raise money, drives innovation by funding new industries, and helps companies with mergers and acquisitions that transform companies entirely. Investment banks also assist governments with financing and economic planning. By taking part in the growth of businesses and advising on major financial decisions, investment banking influences markets, job opportunities, and economic development. Investment bankers have a huge role on the growing scale of the economy over time by assisting companies in profiting as much as possible.
Worklife as an Investment Banker / Pay / Expectations
Investment banking is known for long hours and its fast-paced environment, with employees commonly working 70–100 hours per week. A day in the life of an investment banker consists of creating pitches for companies, analyzing companies, researching and calculating financial models as well as taking part in mergers and aquisitions. Pay is high, with starting investment bankers typically making $120k to $170k, but the job requires great discipline, being compliant with tasks put on the worker, and the ability to handle pressure and tight deadlines.
Top Firms for Investment Banking
J.P. Morgan: Ithe largest U.S. bank by assets and a consistent leader in global investment banking. It dominates market share in M&A, Equity Capital Markets (ECM), and Debt Capital Markets (DCM).
Goldman Sachs: Known for its prestige and involvement in high-net worth organizations and their complex transactions. Goldman is widely considered one of the most influential investment banks in the world.
Morgan Stanley: A major global firm with strong securities and wealth management divisions, frequently advising on major M&A deals and high-value IPOs across industries.
Bank of America Securities: A top investment bank with a large global presence, strengthened by its purchase of Merrill Lynch. It offers a broad range of financial and advisory services useful for many.
Citigroup: A global bank with a strong international presence, especially known for its focus in emerging markets and cross-border financial transactions.
Barclays: A leading British multinational bank with a solid presence in both Europe and the U.S., known for its integrated banking model and strong M&A advisory field.
UBS: A major Swiss investment bank recognized for its significant global network and influence in wealth management and advisory services.
What They Expect When Hiring / How to Prepare / Recommended Schools
Investment banks look for candidates who are strong in math, have excellent communication skills, and are able to work in a team. They want people who can handle pressure, learn quickly, and expand or learn from it. They also are in search of employees that can get work done by a deadline as it's such a competitive field and employees are easily replaceable. To prepare, students often join finance clubs, take internships, build skills in financial modeling and valuation, and practice their interview skills. Networking is also a key part of the process. While top recruiting schools include places like Wharton, Harvard, NYU Stern, Michigan Ross, and Berkeley Haas, strong performance, preparation, and networking matter more than attending a specific college.
Final Comments
Investment banking is definitely not an easy job, but it can open a lot of doors if you’re willing to put in the work. The hours are long and the pressure is real, but you learn a ton and get exposed to big business decisions really fast. For people who are competitive, good with numbers, and don’t mind staying up late to finish a deal, it can be a great path and a rewarding one. Even if you don’t stay in it forever, the experience can lead to other big opportunities in finance like private equity, hedge funds, or corporate jobs.
