I put together the list of typical questions that I get asked about my prior investment banking careers. I was a senior associate at a large European bank, covering commodities corporations and agriculture. Prior to that, I spend time working in diversified industrials coverage.
Do people like their investment banking careers?
Yes, banking and high finance are incredibly rewarding careers but they are not suitable for lazy or intellectually apathetic people. Imagine getting paid to learn about how the plastics, whey protein, lithium, and movie theatre business works, in a single year?
You literally are given a SHIT TON of money to help sell businesses (in M&A) or big chunks of money (corporate lending/leveraged finance) to other businesses and corporations. It’s like getting paid to go to Uni.
If you don’t like money, and you don’t like learning, then do not go into banking.
How many hours do investment bankers work per week?
There’s a party line answer here and a real answer here.
The party line is “yes, we work 100 hour weeks!”
The reality is that a good investment banker will not really “work” more than 40 hours per week. There is a difference between being at your desk and working.
Usually, unless you works at a real sweatshop and grindhouse (and I’ve worked at one before) you should be quick to finish assignments, review them, correct mistakes and return to your bosses, quickly. Let them take it from there; always make sure to ask them if they have comments.
If you don’t do this, and procrastinate, or overanalyze your work, you will work late hours and get penalized.
Waiting for comments or feedback from your MD/VP is not working. It’s waiting.
What are the drawbacks Investment Banking Careers?
There are many megalomaniacs in finance. But there are assholes every where.
There are no general drawbacks different from any other jobs unless you value sitting on a couch for 15 hours a week.
Finance can be an exhilarating but demanding career that forces you to use your quantitative and qualitative skill set.
What do you do on a day-to-day basis?
A lot of the jo is research, understanding the financial performance of a company, it’s competitors, underlying markets and demand drivers, industry considerations and politics.
You will be doing financial models and presenting analyses in PowerPoints and deliverables.. I can help here, feel free to DM.
Do you get compensated well for how much work you do?
Well is relative, but chances are that if you land a top 30 global banking in investment banking or leveraged finance you will make up to $150-$170K in your first year. From there, the sky is the limit and depends what you do with your career.
Best Financial Modeling Courses
- IB Interview Course
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- WSO Elite Modeling Package
- Venture Capital Master Program
- Real Estate Master Program
- Private Equity Master Program
I’m a Consultant and want to move to private equity, how to I do it?
This is a bit off the main topic, but lots of consultants, like investment bankers care about exit opportunities. and Private I had a user ask me how difficult it would be to transition from a cost-cutting role (what I would call ops) to Private Equity. Its a great question. I address it in detail here:
https://geolbo.com/from-ops-to-pe/
What is a leveraged buy out?
You can read all about leveraged buy outs at my post here
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Yes
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