Investment Banking

This article is all about investment banking associates. They are investment professionals who combine financial services industry expertise, analytical prowess, and practical, persuasive communication skills to support institutional clients in activities like capital raising, mergers, and acquisitions.

They are crucial participants in the financial growth and development of a business, organisation, or other corporate entity. An investment banker is a broad phrase that encompasses many positions, from entry-level investment banker analyst to executive vice president. 

All about Investment Banking Associates

Examples of investment banking associates are Goldman Sachs, Morgan Stanley, JP Morgan, and Accenture. Most of these investment banking associates have their headquarters in New York or London. They perform a wide range of work. For example, recently, you may have heard that Zomato launched its Initial Public Offering (IPO). From now on, Zomato will be a public company, and the process was carried out with the help of investment bankers. 

Investment bankers typically work on bringing something from the private to the public realm and getting it traded on the stock market. They assist with the company’s listing. Accenture, an IT giant, recently acquired Aveico, Alfa consulting, and Zest group. For example, an associate investment banking associate at Accenture helps in acquisitions and mergers of a company. The environment of an investment bank is such that there will be both buyer- and seller-side investment bankers/experts, and they do the valuations, profit calculations, selling points, etc.

Examples of Critical Skills required to work in an Investment Bank:

• Financial modelling
• Relationship management
• Negotiation skills
• Pitchbook preparation and presentation skills
• Business valuation
• Sales, marketing, and business development

To be considered for an investment banking associate position, candidates must have the necessary skills. Among the most crucial skills are:

• Impeccable finance knowledge
• Professional excel skills
• Exceptional communicative abilities
• Ability to use PowerPoint
• Understanding of microeconomics and macroeconomics and their implications

An Investment Banking Analyst’s average day consists of the following tasks: 

• Financials data entry
• Pitch presentation
• Preliminary analysis of sector and company
• Arranging for meetings, conference calls, etc.
• Correlating macro and microeconomic parameters

Investment banks’ three major business verticals are mergers and acquisitions, equity capital markets, and debt capital markets. Investment bankers are categorised into specialisations at the associate level. The focus of IBD associates will be on broadening their line of work.

The Investment Banking Analyst is usually promoted to Associate Investment Banker depending upon their skills and acquired skill sets. However, to be considered for lateral employment in investment banks, one must have sufficient experience working in another investment bank.

An IBD Associate’s day-to-day job is comparable to that of an Analyst but with additional sophistication, depth, and specialism. An investment banking associate’s work life is similarly intense yet significantly less monotonous. He is eligible for promotion to VP after spending 2-3 years as an Investment Banking Associate.

Position in the Hierarchy

An associate investment banker is senior to the analyst. After applying decades of work expertise, the analyst is promoted to an investment banking associate position.

The Role of an Associate Investment Banker:

The role of an associate investment banker is equivalent to that of an analyst but with additional responsibilities. Investment banking Associates supervise and guide analysts performing under them; they review analyst work, ensure adherence is met, ultimately handle exclusive deals independently etc.

Promotions

Promotions to the vice president level typically take three years for an associate investment banker. Nevertheless, it could take a while, depending on the company’s requirements for the vice president position. 

How hectic is the job? 

Whereas the job of an associate investment banker is as extremely stressful as that of an analyst, it is less redundant. 

Jobs – India vs Abroad

There’s a vast difference between the two. Even in the top firms, end work is often offered back in India, and the front-end office work is offered abroad, particularly in the US and Europe. 

Pay and Perks 

The average salary of an Associate investment banker in India ranges from 9 lakhs and upwards. The bonuses account separately, according to their performance. Top investment banking firms may offer 100% to 200% of their salary. 

In the US, the average salary of an associate investment banking (in Accenture) ranges from 175,000 US dollars to 225,000 US dollars, and the bonus separately accounts for about 125,000 US dollars to 325,000 US dollars. Overall, the total compensation is about 350,000 to 500,000 US dollars. 

Conclusion

Hope you have found this article all about investment banking associates useful and relevant to your goals. Although Associate Investment Banking appears to be an elegant and well-paying excellent option for new graduate jobseekers, it is also tricky. As a result, associate investment banking (especially in companies like Accenture) is an excellent career option for anybody serious about pursuing it and is aware of all the benefits and drawbacks. It may be a difficult journey, but completing it will be highly rewarding.