An investment banker is a professional engaged in the financial industry. He or she raises capital for various entities via investments from external sources and also provides additional services, from acquisition advice to reorganizational assistance.
Investment Banker Job Description
Aside from servicing companies that offer stocks and bonds, an investment banker acts as a liaison for the investors. He or she facilitates the transaction between these two parties. He or she is the professional who prices financial instruments in order to generate the maximum revenues for the company without violating any regulatory requirements.
Education, Qualifications, and Certifications
An investment banker can come from different educational backgrounds, but must be adept in mathematics. Everyone starts out as an analyst and receives ample training from their employer or external sources.
Training programs usually consist of hands-on practice and focus on the principles of markets, risk, accounting, financial modeling, and of course, the analysis of financial statements. Over time, the professional also learns skills in line with presentation, communication, and training.
In some cases, an investment banker may opt to take an MBA or equivalent financial graduate program. Certification programs including the CFA charter can be a big help when it comes to this line of work.
The Investment Banking Hierarchy
- Investment Banking Analyst
This is an entry-level position. This individual basically has to follow orders from anyone of a higher professional level. This means working as an administrator, secretary, computer tech, and other supporting roles while undergoing training.
- Investment Banking Associate
The associate is the number cruncher. He is also responsible for processing communication between senior bankers and other analysts.
- Vice President
The VP is responsible for pitching books as well as managing client relationships.
- Senior Vice President
This is the person who is responsible for driving new business and maintaining current clientele.
- Managing Director
This professional holds the highest authority and is primarily responsible for driving profits into the company. He needs to know every internal transaction and external economic event. When necessary, he also takes an active role in ensuring that deals come into fruition.