Investment banking is highly competitive, and internships are necessary for students to enter the industry. Major financial institutions offer a range of internships, including mergers and acquisitions, equity markets, and debt markets. Boutique firms offer a more intimate environment, and asset management internships are also available.
The field of investment banking is among the most competitive places to find employment. Bankers represent some of the most highly educated professionals who conduct some of the biggest business that takes place in the debt and equity markets. Students looking to enter the banking industry will likely need to undertake an internship program before attempting to start a career. Investment banking internships exist at some of the larger companies, known as brackets, and also at some smaller, independent financial institutions. The skills needed for investment banking are also present in some forms of money management, and subsequently appropriate internships can also take place in asset management.
Investment banking internships at major financial institutions present a huge number of possibilities. Big banks have the strength of a solid balance sheet to fund deals, even though the sector has seen ups and downs. These companies are like well-oiled machines with internship programs because management teams realize they are training the next generation of banking talent. During investment banking internships at volume support companies, students can be part of large teams of industry professionals from whom they can learn the ropes of capital market banking.
Banks tend to create divisions and groups to organize the range of businesses that generate business within a company. An intern could theoretically be part of one of these teams. Investment banking internships can focus on mergers and acquisitions (M&A), and this can be drilled in depth by industry, such as technology or retail M&A. An intern may be assigned to deals that take place in equity markets, such as initial public offerings (IPOs) or in the debt markets where government and corporate bonds are issued.
Certain investment banking internships specialize in specific areas, such as advisory work through merger and acquisition agreements. Boutique investment banks are often smaller than the brackets and tend to focus on fewer services. A student who is interested in working in a more intimate environment, where it may be possible to participate more in business, might consider a position with a boutique consulting firm.
Most investment banks and some boutique firms have asset management divisions. Students interested in managing mutual funds or hedge funds on behalf of clients may consider internships in this financial services segment. It is not uncommon for a finance professional to transition between money management and traditional investment banking services.
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