A student interested in a career in financial services should think about getting a master’s degree in business administration (MBA). When compared to someone with only a bachelor’s degree, the job market for someone with this type of formal education opens up a whole new world of possibilities. Because of the MBA career opportunities available, someone with this degree could be catapulted from a position as an administrative assistant to a position as a top financial officer in a corporation. Some investment firms in the financial services industry consider not only whether an MBA degree has been earned, but also the reputation of the school where the education was completed.
Hedge funds are among the most advanced investment firms available. These professionals deal in complex financial derivatives and take huge risks with the firm’s own money as well as client assets. For a recent graduate or a seasoned industry veteran looking for a change, MBA career opportunities could lead directly to a hedge fund firm. Although someone who chooses to start a hedge fund from the start of their career may be exempt from the MBA requirement, most career opportunities in financial services are competitive. Hedge funds often come with a lucrative compensation package that includes a 2% management fee and a 20% performance fee charged to clients.
Investment banking is another field where an MBA can pursue a career. Some of the largest financial transactions in the capital markets are handled by bankers. These experts are tasked with coming up with innovative solutions to a company’s financial problems and are well-versed in both equity and debt financing options. Investment banking is a highly competitive field, and candidates who have completed business school programs may be able to advance further. An investment banker with an MBA in finance or accounting may be able to negotiate a better starting salary and bonus structure than someone without this degree.
Private equity is a type of alternative investment management and a segment of the financial services industry where MBAs are frequently sought after. Private equity transactions can be extremely complicated. Leveraged buyout deals may involve taking publicly traded companies and turning them private with the help of debt. Young graduates or those looking for a career change in finance may be interested in pursuing a private equity MBA.