The field of investment banking is one of the most difficult to break into. Bankers are some of the most highly educated professionals in the debt and equity capital markets, and they are responsible for some of the most significant transactions. Before attempting to launch a career in banking, a student will almost certainly need to complete an internship program. Internships in investment banking are available at some of the largest firms, referred to as bulge brackets, as well as some smaller, independent financial institutions. Some forms of money management require the same skills as investment banking, so appropriate internships can be found in asset management as well.
Internships in investment banking at large financial institutions offer a wide range of opportunities. Despite the industry’s ups and downs, large banks have the strength of a strong balance sheet from which to finance deals. Because the management teams recognize that they are training the next generation of banking talent, these companies operate like well-oiled machines with internship programs. Students may be part of large teams of industry professionals during investment banking internships at bulge bracket firms, where they can learn the ropes of banking in the capital markets.
To organize the variety of deals that generate business at a firm, banks often create divisions and groups. In theory, an intern could be a member of any of these teams. Internships in investment banking can focus on mergers and acquisitions (M&A), which can be further subdivided by industry, such as technology or retail M&A. Deals in the equity markets, such as initial public offerings (IPOs), or the debt markets, where government and corporate bonds are issued, could be assigned to an intern.
Certain investment banking internships specialize in specific areas, such as mergers and acquisitions (M&A) advisory work. Boutique investment banks are typically smaller than bulge bracket firms and focus on a smaller number of services. A student who wants to work in a more intimate setting where he or she will have more opportunities to participate in deals should consider a position with a boutique advisory firm.
Asset management divisions are found in most investment banks and boutique firms. Internships in financial services for students interested in managing mutual funds or hedge funds on behalf of clients are available. It is common for a financial professional’s career to include both money management and traditional investment banking services.