Investment banking is a highly competitive and extremely challenging industry. The hours are long and critical thinking and attention to detail is mandatory, but the pay is amazing. Individuals in investment banking find themselves working upward of 100 hours per week, with the occasional mandatory all-nighter to meet tight client deadlines. The process of becoming an investment banker is hyper-competitive as investment banks receive hundreds, if not thousands, of qualified applications for a limited number of summer associate positions and distinguishing oneself is of the utmost importance.
So how does one go about earning an interview and landing the coveted investment banking position? What should an individual do to make the cut?
The first question that students should ask themselves is why do they want to do it? Investment banks generally ask this question of prospective candidates and everyone seeking to pursue a career in investment banking should know the answer and be ready to provide a response that is both logical and honest. As I go through the recruiting process, this is a question I have received on numerous informal interviews. One should take the time to think the question through before starting an MBA program. Half-thought answers are highly discouraged as they will torpedo any chances of breaking into the industry; investment bankers have an uncanny ability to distinguish weak from good responses. There are a lot of good, reasonable answers, but above all, the answer should never be “for the money.”
During the summer, candidates should also consider what makes them different than any of the other hundreds of candidates looking to pursue investment banking. What in their background sets them apart from other candidates applying for the same position and what in their background indicates a successful career in investment banking? An accounting or finance background is not mandatory, as the learning curve during the first few weeks on the job is steep and everyone will tell you that business school provides the basics. Explaining how past non-finance/accounting skills cross over into investment banking is a must.
So how does one seek out a firm after figuring out that one wants to be in the field and can explain what sets them apart? As investment banks receive far more applications from qualified individuals than the number of positions they have available, a candidate has to go out of their way to make contact and stay on their radar. What does this mean? It means flying to where they go recruit, attending information sessions, and calling any contact whom you can imagine works at a bank. Once you have established a contact, invite the individual for coffee and stay in touch with each person going forward. Keep in mind that investment bankers have limited time availability, so you’ll have only a short window of time to make a lasting impression.
From my experience, as I go through the recruiting process, I started by attending the Reaching Out MBA conference in order to make that initial contact with directors, VPs, associates, and recruiters. Using this initial list of contacts, I began scheduling flights to New York for coffee meetings with the individuals I had met at the conference. One key aspect of scheduling these meetings was keeping in mind how little free time investment bankers have. I highly recommend asking for a 20-minute coffee meeting, as anything longer could be a burden and the acceptance rate may be less. If the banker wants to discuss for longer, they would schedule longer meetings or stay in the coffee shop past the time. I have yet to run into someone who has turned down a cup of coffee when I asked for 20 minutes and most have turned into a 30-minute to an hour-long discussion.
Another source of contacts is close to campus: Corporate Finance and Investment Banking (CFIB) program directors, CFIB advisory board members, Wisconsin’s Alumni Relations Office, and Wisconsin’s corporate relations director. These individuals have a treasure trove of contacts at various institutions. From my experience, these contacts are more than willing to help students out as much as possible. I have asked and met with various individuals listed above, and the contacts have proven useful in generating interest from the banks. I even had the opportunity to attend a Wisconsin School of Business alumni function in New York, meet other non-CFIB MBAs in the city, listen to the dean present his vision for the school, and meet a number of alumni in private equity and investment banking. As a general rule, any contact is a good contact.
How far in advance should one schedule coffee or office meetings? As investment bankers’ schedules are highly subjective to deal commitments, it is generally a good practice to reach out at least two weeks in advance to schedule a time. I highly encourage confirming the meeting on Friday or Monday before arrival. Before a meeting, spend time researching what industry or product group the individual is assigned to; it also helps to find out which deals the bank has recently executed as it provides a good source of questions about the individual’s efforts. If the meeting is going well, I generally ask if they could help me meet other individuals in the group or bank, but I usually leave this for second or third coffee meeting.
In between trips, work on your industry research and technical interview questions responses. Keep in mind you don’t want to be great at coffee meetings and flunk the formal interview. All the coffee meetings are designed to generate name recognition when the application is under review by the recruiting committee. The more people at a bank that can vouch for you, the greater chance you have at landing the first-round interview or even skipping ahead to round two. In order to practice technical question responses, I set up practice times with my classmates and held mock interviews with alumni in the field. Too much practice is not something you should be worried about.
Final piece of advice during the process: keep a list of application deadlines. Not all banks have a published drop-dead date, and this requires careful coordination with each investment bank recruiter or contact. The advice I’ve received: the earlier the application is worked on, the more time one has to get feedback on cover letters, résumés, and other relevant questions in the application. Missing a deadline is one sure way not to get a chance, but submitting early will not hurt you.
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