Career opportunities in Investment Banking after CFA® - Aspire Now Global

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 CFA®   designation is considered to be the gold standard in the Investment Management industry opens up a lot of career avenues for candidates. In this article, we will talk about investment banking as a career option for CFA® candidates. 

#1 What is Investment Banking?

Investment banks act as an intermediary in the financial transaction for corporates.

#2 Following services are provided by investment banks

# Fund raising (debt & equity)

# Valuation services

# Pitch deck creation

# Mergers and Acquisition advisory

# Corporate restructuring

# Capital market services

#3 There are two types of Investment Banks

Criteria	Bulge bracket investment banks	Boutique investment banks
Number of areas served	They serve various areas simultaneously such as valuation fundraising M&A	They are usually focused on one or two areas of the investment banking sphere
Organizational Size	They are much bigger in their market cap and employee size	They are comparatively much smaller in their market cap and employee size
Deal size	The deals facilitated by these banks are comparatively much bigger in size	The deals facilitated by these banks are comparatively much smaller in size
Hierarchy	The hierarchy at bulge bracket investment bank is more stringent	The hierarchy at a boutique investment bank is more flexible
Learning curve	At bulge bracket investment banks training is provided to the employees in a classroom environment	Here training is provided at the job across various levels. Here employees get exposure to the deal at the face level at a very early stage as compared to bulge bracket investment banks

#3 Hierarchy System at Investment Banks

1. Investment Banking Analyst:

Responsibilities:

# Researching companies

#Building financial models

#Preapring PowerPoint presentation to communicate ideas to potential clients

# Preparation of pitch deck and teaser

2. Investment Banking Associate

Responsibilities:

#Talking to clients and seeing what they need

#Work with the analyst in preparing pitch deck and financial model

3. Vice President

Responsibilities:

# Speak to clients and update on how deals or transactions are progressing

4. Director/Senior Vice President

Responsibilities:

# Acts as a bridge between clients and team in lower ranks

5. Managing Director

Responsibilities:

#To keep a track of how deals are progressing

#Soliciting new clients

#Meeting potential investors

#Building relationship

#4 Key skills required for Investment Banking Job

# Strong communication skills

# Analytical thinking

# Sound understanding of business model and industry.

# Sound understanding   of financial statements

# Strong interpersonal skills

# Sound knowledge of financial modeling 

# Strong writing skills

#5 Qualifications preferred in the industry 

Following degrees are helpful for candidates to get an entry-level position in investment banking:

# Chartered Financial Analyst (CFA®)

# MBA (Finance)

# BBA (Finance)

# BA (Economics)

# B. Com

# MS Finance

Hope this article will help candidates in making their choice about a career in investment banking.