Investment Banking Internship Guide

Many investment banks offer investment banking internships, and the duration is between 3 months to 2 years as it completely depends on the profile you choose as an intern. And if you complete your internship, you will see yourself as an investment banker soon. On the other hand, if you outperform, you might be absorbed as a permanent employee of the investment bank you are pursuing your internship with… you never know.

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Why Investment Bank Offer Internships?

The companies or the investment banksInvestment BanksInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more hold on to their vacancies, for they have to make arrangements to pay for new recruitment when the market does not favor their pockets. So there are layoffs of not performing employees to recruit fresh talent in such situations. However, this can be a win-win situation for you, my friend.

Key Takeaways

  • An internship in an investment bank is the perfect opportunity to kickstart a potential career in investment banking. A good performance in such an internship can provide people with substantial employment opportunities in the field.Internships in the field of investment banking help individuals build a CV that is suitable and appreciated by employers in investment banks.Internships in investment banks can be found and procured through offline applications, employment and internship exchanges, company hunting, and social media.The basic responsibilities of an intern in an investment bank include corporate banking, mergers and acquisitions, trading and investment, and capital markets.

In a situation where investment banks are looking to offer investment banking interns to acquire future investment bankers, you must grab it, and of course, you will. However, will this situation be beneficial for investment banks?

Two major benefits for the banks here are

  • Internships are much cheaper and more economical for the company than full-time employees or permanent employees.And the second benefit is if you are an outstanding performer they will make sure they might offer you a permanent job. It would be best to cash on their benefits to striking through this industry at the right time.

Know and understand the Investment Banking Industry

Before you get into any course or job, you might want to know about it. The world today works with the help of the internet and its search engines. Use the internet to research the industry you want to enter as an investment banking intern.

You should make sure you know the different fields of investment banking; you might want to choose what field you want to enter as an investment banker from one of the following.

  • Corporate financingAcquisitions and mergersAcquisitions And MergersMergers and acquisitions (M&A) are collaborations between two or more firms. In a merger, two or more companies functioning at the same level combine to create a new business entity. In an acquisition, a larger organization buys a smaller business entity for expansion.read moreCapital marketsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read moreTrading and salesTrading And SalesOne of the main functions of an investment bank in the country is sales and trading, in which the investment banking sales team pitches clients for trading ideas and the traders team executes activities related to the purchase and sale of securities and other financial instruments in the market for itself or on behalf of its clients.read more

You should make sure you know the topmost investment banks across the globe and the best performers around your locality. The career path of an investment banker, last but not least, the different profiles offered to an investment banker.

Along with knowing about the journey of an investment banker, you must know the work schedule and the risk involved in the job. The main job of an investment banker is handling the money from his investors, mainly high-profile investors. He has to manage a tough job, and hence he works for approximately 60 to 90 hours weekly. Undoubtedly is paid a handsome salary, including incentives.

Develop your Investment Banking skills

You want to apply for an investment banking internship; you sure would be judged on your financial skills. If you are a finance graduate, you should make sure you read through the college course once to be prepared before you apply for this designation. On the other hand, if you are not a finance graduate and would still like to apply for this designation, you must make sure you get the fundamentals of finance correct before applying for the internship.

Start with knowing the basics of finance, for example, understand the trends of market and investments, macroeconomics and microeconomics and their environments, financial deals and the mechanics involved behind these deals, etc. do not forget expertise in any field only comes with practicing them in person.

Besides your finance skills, you must make sure you have certain corporate skills that will help you deal with your co-workers, your seniors, your clients, and the organization’s management. Developing these skills takes a lot of time and practice; however, you have a strong professional attitude to work as an investment banker. Basic skills of dealing with people or maybe different types of people, communication skills, interpersonal skills, and analytical skills. You must also possess creative skills and the ability to display your creativity in finance and interest in taking initiatives as an employee, as a co-worker, and as a team member.

Bottomline – Your Investment Banking resume should have hard skills like Excel, Accounting, Valuations, DCF, Relative Valuations, Comparable CompsComparable CompsComparable comps are nothing but identifying relative valuations like an expert to find the firm’s fair value. The comparable comp process starts with identifying the comparable companies, then selecting the right valuation tools, and finally preparing a table that can provide easy inferences about the fair valuation of the industry and the company.read more, Financial Modeling, Mergers & Acquisitions.

CFA LevelCFA LevelThe CFA exam is regarded as one of the most difficult to crack. Your preparation, time management, and sequence plays will all play an important role in your journey.read more 1 will be an icing on the cake for an investment banking internship.

Develop an Investment Bankers resume

Your resume needs to be honest and as precise as possible. A professional summary of what you are, your set of skills, your capabilities, strengths, and suitability as an investment banker needs to be highlighted in your resume.

Communicate and display your resume in simple language with short and simple sentences. The interviewer will not be impressed by your language but by your skills. Along with the responsibilities you are ready to take up as an intern.

To match up to the standards of an investment banker, you can add a cover letter to your internship application. However, your cover letter needs to be very long, for the interviewer will only glance through it and not read it in detail.

These two documents work as your 1st impression in front of the management or the HR of the company. So it would be best if you made it right. Silly mistakes, spelling mistakes, and incorrect information is a simple NO.

Your first document is the most important one to correct before applying for an internship.

Apply both online and offline

Circulating your resume will be your next job after your resume is ready. These days circulating your resume has become very easy since the internet is available. You can read further to check on how you can circulate your resume and make yourself recognizable.

Online resume circulation

Since the availability of the internet has come into being, contacting the organization to make sure you send your resume has become very simple. The internet has the following ways of helping you to find an investment banking internship.

Several job portals can help you look for internship options online by your favorite recruiter. First, create an account in these portals and post your resumes. Then, look for internship opportunities and apply for the same online.

Companies have openings posted on their company website under the careers option. Please make a list of 10 or more top investment banks and post your resume on their website. Then, if there is a relevant opening, apply for the same.

Here is the list of Top Investment Banking Firms that will help you jumpstart – 

  • Boutique Investment BankBoutique Investment BankThe top boutique investment banks are - Perella Weinberg Partners (Global M&A Advisory – Boutique), Lazard (Global M&A Advisory), Rothschild (Global M&A Advisory – Boutique), Evercore Partners (Global M&A Advisory – Boutique), Greenhill & Co. (Global M&A Advisory – Boutique, Blackstone (Global M&A Advisory).read moreBulge Bracket Investment BanksBulge Bracket Investment BanksTop 10 bulge bracket investment banks are - Blackstone, Goldman Sach & co, Morgan Stanley, J.P Morgan Chase & co, Bank of America Merrill Lynch, Credit Suisse, Citi, Deutsche Bank, HSBC, UBS.read moreMiddle Market Investment BanksMiddle Market Investment BanksThe deals of a mid-tier investment bank range from USD 50 million to USD 500 million. They offer the same services as the bigwigs, i.e. bulge bracket banks, but are not as geographically present internationally as they are.read more

One of the most famous modes of passing on your resume is social media. So join these professional social media sites such as LinkedIn, Twitter, etc. you also should be active on other sites such as Facebook Google Plus to make sure that you do not miss out on a group that has an opening relevant for you.

Offline resume circulation

When people did not have the internet, they still had jobs. Yes, of course, jobs were not accessible and available so easily. However, there were a few ways to get through a company for a relevant job.

Companies coming into your college to offer you an internship is an amazing and ultimate opportunity to break through as an intern with an investment bank as an investment banker. First, however, you need to make sure you crack their interview. Be prepared with the company details, the background of the industry, and your profile to make sure you do not lose the opportunity.

You will save on the other hassles of transporting your resume to the banks through various sources if you crack through now.

One of the 90s ways of getting a job is meeting up with consultants. Keeping yourself in focus was a way of getting a job just before the internet was introduced. However, this way of getting in touch with recruiters is famous today. The best way of showing your presence is to meet up with the consultancy firms once a week as they know the investment banking internship opportunities in the market.

There might be charges involved when it is about consultancy firms or hr firms. Some firms might charge you a joining fee; some might charge you a fee after you place, whereas some firms might not charge you at all. They will take placement charges from the investment bank you will be placed in.

The chances here are high because the consultant will keep sending you for interviews. Appearing for interviews and taking your chance will lead you to success.

To enter into any business, you have to have a strong network. The internet these days has made networking simple. However, besides the internet, you must create a network for yourself. When it is about networking, you must not rely only on the internet or social networking sites. Take the extra effort and meet with people in the investment banking sector. This effort will also be of great help in the future for you and your career. Continue to keep in touch with your contacts as this industry provides opportunities.

As you create a network, you must confirm if you would like to live in this industry and grow. If yes, make sure you do not lose on these contacts as these contacts will help you not just sustain and grow but also get jobs at every level of your career in this industry.

Prepare for your Investment Banking Internship Interview

Do you never know which company might like to hire you as an intern? Do you never know what they offer to make? Hence it is very important to always be ready. If you outperform, you might get an opportunity to become one of their permanent employees. If you are prepared for your interview, you might be able to face an interview with the best investment banks without any hesitation. You never know if you have an interview coming up urgently. If you are prepared, you will not need to prepare at the last minute.

Prepare for the finance industry and investment banking careerInvestment Banking CareerAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. read more, and study the best investment banks globally and locally. Study about the investment bank you have to face the interview at. Keep your data and stats ready; list them down in your head to fire them at the interviewer.

After your resume and cover letter meeting you in person for the 1st time has to be remarkable for the interviewer. Create an impression to kill and sustain in the market. Being prepared for your interview will give you the advantage of being prepared before you walk in for an investment banking internship interview.

Besides your interview preparation, make sure you are presentable enough to attend an internship interview. As a management or a finance student, you must be aware of the presentation of an investment banker. A banker is always very professionally dressed, which is mostly formal. Without an option of casual dressing, investment bankers dress formally to be professionally dressed as this makes them presentable and

So your interview not just includes your preparation on finance, the investment banking industry, the investment bank you have your interview with. It also includes your preparation for looking and carrying yourself as an investment banker that is your professional side. No more looking and behaving like a student.

Sometimes Investment Banking Interviews are case-based, do have a look at these Investment Banking Case StudiesInvestment Banking Case StudiesInvestment Banking (IB) Case Studies are an assessment criterion type for all the IB aspirants used to evaluate their performance in a theoretically demonstrated real-life scenario. read more for further details.

Conclusion

Getting an investment banking internship might not seem easy for candidates to have a huge competition awaiting them. The unstable global economy has made working in this industry even though.

Getting through involves several calculations such as the right timing, the right type of skills, correct understanding of the industry, creating a professional resume, and spreading across the industry through various means. Online and offline methods should be used, for you never know what method might work wonders.

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An internship in an investment bank can offer substantial exposure to investment banking and create a pathway for an individual to enter the field completely by solidifying and supporting his/her CV and providing practical knowledge and experience to the interns.

People can find internships in investment banks through various sources such as job portals, website hunting, social media, campus interviews, and networking with consultants.

Internships in investment banks can create a two-fold benefit. First, they can open doors in investment banking for young professionals and create a pathway for them to enter this field. It can also provide investment banks with young and vibrant talent with innovative caliber and find future employees and bankers.

Internships in investment banks can create a two-fold benefit. They can open doors of the field of investment banking for young professionals, and can create a pathway for them to enter this field. It can also provide the investment banks with young and vibrant talent with innovative caliber, and find future employees and bankers.

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