Investment banks can be categorised into four types that include regional boutique banks, elite boutique banks, middle market and bulge bracket banks.
Let’s delve deeper into each category.
- Regional Boutique Banks: The regional boutique is considered as the smallest category of investment banking based on the typical deal size and firms operation scale. These investment banks specialise in a particular niche, for example, a Merger and Acquisitions investment bank. The employee count is also very small as compared to other investment banks.
- Bulge Bracket Banks: The bulge bracket category includes high-profile investment banks in the industry who have an international presence. The clientele ranges from high net-worth individual to large corporations. They have multiple offices in different locations and have employee count in thousands. For example Morgan Stanley, Deutsche Bank, etc.
- Elite Boutique Banks: The elite boutique category includes those investment banks who are almost at par with bulge bracket investment banks in terms of deals managed by them. The monetary value of these deals is often higher than $1Billion. These banks also have an international presence but the scale of operations is somewhat limited when compared with bulge bracket category. For example JP Morgan Chase & Co.
- Middle-Market Banks: Middle-market banks fall somewhere between the regional and bulge bracket category. The average deal range for banks in this category is between $50 million to $500 million. They majorly operate domestically but some can have a limited international presence as well. For example Cowen Group.
Is Investment Banking a Good Career?
Many fresh college graduates aspire to make a career in the investment banking industry. Most of them are thrilled by the lucrative remuneration and perks attached to the title of an investment banker. However, not everyone turns out to be a successful investment banker. Is the investment banking career a good one for you? Well, the answer to this question depends on how committed are you to your career.
The investment banking career is a demanding one, the role of an investment banker is multidimensional. It requires honing a range of skills including both soft skills and technical skills to achieve success. The day-to-day of an investment banker includes doing research for your clients, staying updated on the financial news, conducting complex financial analysis, projecting prospects, meeting with various stakeholders and building relationships on behalf of the investment banks, etc.
The rewarding remuneration is justified by the workload it entails. The job of an investment banker is a high-pressure one, demanding most of your time. On average, the investment bankers work for 12-16 hours a day, it is far from 40 hours’ work-week that a normal job has. The pay scale is also very high, compensating you for every bit of your time and effort. If you are willing to invest your time and effort that is required to be successful as an investment banker then it is surely a good career option.
How Do You Become an Investment Banker?
Investment banking has been one of the most sought after and lucrative career prospects. Most people aspiring for a career in the field of finance have their eyes set on the title of an investment banker. The primary reason why most people consider investment banking as their ultimate career goals is the type of remuneration this job role has to offer. The pay scale is unmatched by any other industry, even an entry-level position has very rewarding perks.
How can you become a successful investment banker? The answer to this question depends on what stage of your career you are presently at. If you are yet to graduate you have the utmost flexibility to choose your path. The best way to start is by pursuing your bachelor’s degree in a relevant field like economics, commerce, finance, accounting, statistics, etc. This degree alone can help you get into the investment banking industry at an entry-level position.
The best way to kick-start your career in this field is by pursuing an MBA degree with a specialisation in Finance. Another equally rewarding way is to enrol for an investment baking related course which will provide you with hands-on knowledge and skills relevant to the job that you will be doing as an investment banker. Being a successful investment banker takes time, determination and commitment to your job.
What Is An Investment Banking Course?
Investment banking is a specialised division in the banking and finance industry that primarily focuses on helping individual and corporate clients to raise capital from the market. Investment banks act as mediators between the party seeking funds and the investors who are looking to gain a profitable sum on their investment. It also provides financial consultancy on an array of financial instruments for investment purpose by assessing the risk and return profile of the individual.
Investment banking courses are programs specifically created to provide comprehensive knowledge of the capital markets and the investment banking division. The curriculum of these programs is designed to provide both theoretical knowledge and practical understanding of the investment banking landscape. The main objective of the investment banking courses is to impart hands-on knowledge and skills required to become a successful investment banker.
The investment banking course takes a holistic learning approach and focuses on core subject matters including strategic planning, financial management, financial analysis, corporate finance, valuation, alternative investments, equity, portfolio management, quantitative analysis, ethics, etc. The course also provides contextual insights into the primary functions of investment banking that includes Mergers & Acquisitions, corporate restructuring, leveraged buyouts, Initial Public Offering launches, etc.
Which Course Is Best for Investment Banking?
Investment banking is one of the most promising industries to build a rewarding career. The lucrative job prospects attract a lot of young aspirants who want to build a successful career, this leads to high competition in the investment banking industry. Investment banking courses are designed to provide a comprehensive understanding of the core financial subjects. It aims to build your practical understanding of the industry and impart you with relevant technical skills to beat the competition.
Staying ahead in the game requires a lot of hard work and determination. You have to stand out from the crowd; this can be achieved by having an in-depth understanding of the financial industry. Choosing the best investment banking course is subjective and can get tricky at times.
Some important factors to consider before choosing an investment banking course are the technical skills to be gained, the price of the course and the institution’s experience and reputation. The level of specialisation that you require also determines which course would be the best fit for you.
If you are looking for the best investment banking course then join Imarticus Learning's Certified Investment Banking Operational Program. This placement assured investment banking course can help you to build a successful career in an investment banking industry.
Also Read: Investment Banking Overview