Getting entry level investment jobs is a goal for many college students and recent graduates interested in finance. However, these coveted jobs can be very competitive. By understanding key facts like required skills, typical backgrounds, and application strategies, you can optimize your profile and land interviews. This article will provide an overview of 4 key facts about entry level investment roles, including investment banking, asset management, private equity, and hedge funds. With the right preparation, an entry level investment job can serve as the first step in a rewarding finance career.
Investment banks favor quantitative skills, leadership, and finance knowledge for entry level roles
Major investment banks like Goldman Sachs and JP Morgan heavily recruit from top universities for their analyst programs. They look for candidates with a strong academic record in quantitative fields like economics, math, engineering or finance. Programming skills in Python or VBA are also valued. In addition to raw intellect, they want incoming analysts to demonstrate leadership, teamwork and communication skills from extracurricular activities. Prior finance internships are valued but not required. The application process often includes numerical tests, group case interviews and fit interviews.
Asset management firms hire more liberal arts majors for entry level investment roles
Unlike banking, many asset management firms are open to liberal arts and humanities majors for their associate programs. Firms like Fidelity, Vanguard and BlackRock still want to see strong academics, initiative and work ethic. However, they focus less on technical finance skills which can be learned on the job. Associates rotate through different groups to learn the business before specializing further. Asset management interviews test general critical thinking skills through case questions based on real business problems.
Private equity associates need modeling experience from banking or consulting
Private equity firms almost exclusively recruit associates from investment banks and management consulting firms. This is because modeling experience is critical for evaluating potential portfolio company investments. Associates will build LBO models to assess acquisition opportunities. Other key skills include financial statement analysis, Excel, Powerpoint and interpersonal skills to work with portfolio company executives. Recruiting occurs 1-3 years into banking or consulting roles when associates have built foundational skills.
Entry level hedge fund roles require programming and data analysis skills
Hedge funds tend to hire more portfolio management and trading analysts compared to investment research analysts. Portfolio analysts work closely with traders and use programming languages like Python and R to analyze data and automate trading models. Programming, data analytics and statistics expertise is highly desired. Other common entry level hedge fund roles include operations, investor relations and business development.
In summary, entry level investment positions have varied requirements based on the specific role and asset class. Banking and private equity roles demand strong financial modeling and analysis skills. Asset management values well-rounded critical thinkers who can learn on the job. Hedge funds want quants with programming abilities. By preparing early with the right mix of academics, internships and leadership experiences, you can successfully break into the competitive investment management industry.