Life of An Investment Banking Intern
Written by an unemployed student for unemployed students
Investment banking analyst was the career that ranked as the second-most desired for college graduates (behind software engineers) by Inc. in 2018. As someone with almost no knowledge of the industry, save for watching The Big Short twice, I’ve spoken to two students from Ivy League Universities that have worked at different bulge bracket banks (J.P Morgan, Goldman Sachs, Morgan Stanley, Bank of America, Barclays, Citigroup) to demystify what this career is about, the recruiting process and what the work entails.
Choosing the Career
Why did you choose investment banking?
A: It’s a good job to have out of school if you’re indecisive. It opens doors for exit ops, has a certain level of prestige, pays well and lets you push back the decision of what to do.
B: Obviously money. But really, for me, I still don’t know what I want to do. This puts a name on my resume that says I work hard and have tangible skills.
Confirmed: Gen Z will work hard for money and exit ops.
What type of person and skills are right for a career in IB?
A: It’s good for positive people that can work hard with a smile on your face. You have to make peace with the situation, realize you’re in a good spot and be okay not knowing how long you’ll be working from Sunday to Friday.
B: In terms of skills, working with minimal guidance and being diligent are key. Our work isn’t that difficult and if you’re not paying attention to the details, it’s going to take time away from other more senior people that have better things to do.
A: Another skill to have is being able to take a break and talk. Everyone is sort of social and when you’re working till 1:30 in the morning, taking a second to hang out and get to know people is important. That’s when I felt like I started to fit in.
Getting the Job
Does your major matter?
B: No, that’s a huge misconception. They appreciate different majors like arts or engineering. You can do literally anything as long as you’re passionate about it.
What is the GPA cut off? Does it matter if you have a 4.0 or a 3.7?
A: A high GPA is better in anything. The cut-off is demographic based — generally it’s a 3.5 but if you’re an Asian male it’s more like a 3.7.
What is the interview process?
B: Two phone interviews, and a Superday with one-on-one technical and behavioral interviews. I think people over prep technicals and miss behaviorals. It’s really hard to distinguish yourself by walking someone through a DCF. But honestly, networking is like 70% of this process. I think I spent 4 months networking and then two weeks prepping technicals.
How should you network?
B: Go to LinkedIn, find people that went to your school, figure out that bank’s email convention, and then reach out for a conversation. Talk about their experiences on their phone and ask them about their bank and what they like about working there. The best thing to do for a behavioral question about why you to want to work at a specific bank is to say that you spoke to someone there and talk about how their reasons impacted you. To end the call, ask if they can put you in touch with someone else. All of this helps you get an interview and makes it clear you made an effort.
Talking with current employees to answer interview questions is an advanced strategy.
What should you read to prepare?
A: Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Rosenbaum and Pearl will make your Superday easier and explain why things work. If you’re interviewing for boutiques you need to know it. Otherwise, if you network well at a Bulge Bracket, you can get by with the Easy-Medium questions from the 400 Question & Answers Guide by Mergers & Inquisitions.
What’s the salary range for full-time analysts?
A: At a bulge bracket, the base is $85k with a $10k signing bonus. At a Boutique, the base is $95k with a $10k-$15k signing bonus. The top bucket analysts get an end of the year bonus of 80% -100% of your base salary.
At the Job
What do IB analysts broadly do?
B: At the beginning, not much. I had training first and slowly picked up Excel. Halfway through, I was comfortable making financial models. Aside from that, it’s research, slide building and synthesizing reports.
A: You build lots of different financial models. It’s actually a surprising amount of responsibility because even as an intern you’re part of the discussion in whatever you’re doing. But what you produce is Excel sheets, PowerPoint slides, notes on calls and you print books when you present to clients. Always be nice to the print people…
What time would you get into work and leave?
B: Get in at 8:30–9:00 AM. The earliest I left was around 8:30 PM mostly because there was free dinner if you stayed. On average, I left around midnight and the latest was 4 AM. There’s less work during the day but by 4 PM, the senior people are thinking about leaving and that’s when you get more to do. But you can go to the gym if you have nothing to do which is culturally acceptable.
Gen Z will also work hard for free dinner.
What can help you succeed on the job?
A: Being quantitative. You’re dealing with numbers all day and it helps to be comfortable when reading through reports and synthesizing recommendations. Also just being able to get along with the people you’re working with and making sure the people above you have good things to say.
B: Being able to grind and hustle. Talking to associates, it’s about being able to work hard and deal with everything positively.
What are the positives?
A: Good city, good money and since you’re at work for so long, you have no time to spend your money, so your bank account keeps growing.
Wow, sounds like a time.
What are the negatives?
A: Unpredictability. It’s not the hours that bother me but it’s about whether you can make plans. You have to be comfortable canceling whenever something comes up.
Do you work on weekends?
A: It was light but as an intern its good practice to show up on Sundays.
What skillset do you build that’s so highly valued and what are the exit ops?
A: Just like going to college and getting a certain degree is a signal that you value education, its similar in banking. Doing this shows you’re a hard-working person that understands corporate finance, knows excel, PowerPoint, various tax schemes and presents themselves well. After 2 years, 60–70% of people go to PE, then hedge funds and start-ups.
What is the stress level?
B: Less than I thought. Job just ebbs and flows.
A: Like the old saying goes: “99% pure boredom, 1% pure terror.”
After your Summer
What’s full time conversion process?
A: It’s an exit interview with just good news or bad news. But, the banks want you to come back because the prospect of them getting a better candidate with more experience is low.
What didn’t you like about the industry?
A: The thing about banking is that there’s always a carrot in front of you. During your internship it’s about getting a return offer. Once you join, they hold your bonus over you.
What did you wish you knew on your first day?
B: Kill whatever comes at you first to build trust. Also it’s not like movies in terms of personalities — I thought it would be more vulgar and intense but people are generally respectful and open-minded.
A: You’ll learn shortcuts and everything else in time. Just be glad you’re not going to have that much work on your first day. Find a good place to get coffee outside of work.
It would be great if you could hit the clap button as my self-confidence continues to be directly linked to that value.
