Investment banking is an expansive and challenging field which several individuals can pursue. Here is everything you need to know to kickstart your career in investment banking.
Investment banking is a field that one can pursue with passion and determination. It is that division of a bank or a financial institution that helps companies secure, implement and manage their finances well in order to succeed and grow. It is a highly dynamic and volatile field which is looking for individuals who have not only completed an investment banking course but are also charismatic and driven.
There are various functions and areas that one gets to operate in, upon completing an investment banking training from evaluating assets to auditing to securing funds and client relationship management. Investment bankers are talented and do multi-functional roles in their companies. While specialization exists, At the heart of investment banking is the ability of the bank to raise funds for the clients and this is done predominantly by issuing debt or selling equity of a company. Investment bankers need a good quality radar in order to determine the best possible way to raise money quickly. These are crucial decisions which will determine the future of the company and hence investment bankers are highly paid. This also means the job entails long hours and strategic thinking at every step of the way.
Here are the top things that beginners get to do in the field of investment banking.
- Raising capital: One of the top job functions that every investment banker does is the ability to raise money for a business. Every company needs an understanding of how to raise finances to run the business and to take off. Raising capital will then create enough to buy equipment, employ people and create products and sell. Therefore, an important area of expertise for those pursuing a career in investment banking is knowing how to raise funds for a company.
- Assisting in Mergers & Acquisitions: Another important aspect of an investment banker’s role in banking is to help clients evaluate other companies before acquiring them. This means taking stock of the assets and liabilities of the other company, auditing and evaluating and creating a forecast which can benefit the client.
- Issuing Debt: A primary function of an investment banker is to issue bonds to the right investors. This will help raise the required capital for their clients. Companies also hire investment bankers when they must go public i.e. issue an Initial Public Offering (IPO) to raise funds. The success of this plays a crucial role in how the company flourishes in the future. Since aggressive sales skills are required for this, it is a highly competitive field which is rich in rewards.
Investment banking begins to be lucrative and continues to climb the growth trajectory provided one is hardworking, dedicated and sharp. It is a great career for those interested in finance.