As an attractive industry for overseas returnees, investment banks have always been the dream workplaces for many international students. Internship or working experience in the top investment banks such as Goldman Sachs, JP Morgan, Morgan Stanley, etc. will provide students with exposure to top deals and operations in the industry. There are mainly four major stages in the typical career path of an investment banker, including analyst, associate, vice president and managing director. Each stage has different focuses, responsibilities as well as duration. Understanding the four stages will help students better plan their career path in investment banking.
Stage 1: Investment banking analyst
The analyst stage usually recruits undergraduates for a 2-3 years program. Investment banking analysts are responsible for conducting research, financial modeling, preparing pitchbooks and presentations, etc. The main role of analysts is to support the senior bankers in various deals and tasks. Many analysts choose to leave after 2 years to pursue MBAs.
Stage 2: Investment banking associate
Associates are usually promoted from analyst after 2-3 years or directly hired as MBAs. Associates take on more responsibilities in coordinating projects, client communications, financial modeling and leading analysts. The associate stage also lasts for 2-3 years before promotion to VP.
Stage 3: Investment banking vice president
After 3 years as an associate, bankers can be promoted to vice president. VPs serve as project managers, oversee execution of deals, coordinate with clients and support functions. VPs start to participate in more business development activities as well.
Stage 4: Investment banking managing director
After 3 years as a VP, bankers can be further promoted to managing director/director level. MDs focus on the most important clients and transactions, deal with high-level negotiations and drive business development. Managing director is the highest level in most investment banks.
The typical career path of an investment banker consists of four major stages, including analyst, associate, VP and MD. Each stage lasts 2-3 years and has increased responsibilities and business focus. Understanding the stages helps students plan their career development in investment banking.