Career Options

Consumer Banking

Otherwise known as retail banking or personal banking, consumer banking entails executing transactions directly with individual and institutional customers, rather than from corporations or other banks. Consumer banks then use these funds to extend credit to other customers. Consumer banks make money by earning more in interest from borrowers than they pay in interest to those whose deposits they accept. Consumer banking does not necessarily mean finance. Roles in consumer banking cross several functional areas, such as FinTech, marketing, strategy, and operations.

Banks that focus on consumer banking include Bank of America, Capital One, Navy Federal Credit Union, JP Morgan Chase, and Citi.

Investment Banking

Investment banking is the business of raising capital for individuals, companies, and governments and advising them on financing and mergers. Investment banks raise capital by selling securities to investors on behalf of their clients. An investment bank may also provide ancillary services such as market making, trading of derivatives, fixed income instruments, foreign exchange, commodities, and equity securities.

Investment banks include Bank of America, Barclays, BMO, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Evercore, Morgan Stanley, and Wells Fargo.

Investment Research

An investment research analyst conducts quantitative analysis of investment opportunities, including, but not limited to, equities and credit. Buy-side analysts conduct research for portfolio managers and make recommendations for their own firm’s portfolios. Sell-side analysts publish research and make buy/sell recommendations for clients. Research analysis typically focus on a particular sector. Buy-side research analyst positions are extraordinarily competitive and generally require previous experience in Investment Banking and/or Investment Management. It is common to start on the sell side and later move to the buy side. Firms on the sell side are normally investment banks (e.g., Goldman Sachs). Buy-side firms normally involve mutual funds, hedge funds, etc. (e.g., T Rowe Price, Vanguard.)

Private Equity

Private Equity is a source of investment capital from high net worth individuals and institutions for the purpose of investing and acquiring equity ownership in companies. Private equity investments are primarily made by private equity firms, venture capital firms, or angel investors, which raise and manage funds to yield favorable returns for the their shareholder clients. Each type of firm has their own set of goals, preferences, and investment strategies for providing working capital to a target company to nurture expansion, new product development, or restructuring. Note: Most PE firms do not have a formalized recruiting process so the positions tend to be just in time rather than posted in the typical investment banking recruiting cycle.

Private equity firms include Apollo Global Management, Bain Capital, Blackstone Group, Carlyle Group, CVC Capital Partners, Kohlberg Kravis Roberts, and TPG.

Private Wealth Management

Also known as private banking, private wealth professionals manage and grow the wealth of high net worth ($10m +) individuals by attending to the protection of assets, taxes, estate preservation, and income needs. Private wealth incorporates financial planning, investment portfolio management and other financial advisory services. Private Wealth Management is generally a division of an investment bank that focuses on individuals and families instead of institutions. Previous sales/relationship management experience is desirable and stellar communication skills are critical.

Private wealth firms include Bank of America, Goldman Sachs, JP Morgan, Morgan Stanley, and UBS.

Project Finance

Project Finance involves a loan structure that relies chiefly on the project’s cash flow for repayment. This entails the financing of long-term infrastructure, industrial projects, and public services, where project debt and equity used to finance the project are paid back from the cash flow generated by the project.

Firms that focus on project finance include BNP Paribas, Citibank, Deutsche Bank, HSBC, the Macquarie Group, and Union Bank.

Public Finance

Public Finance can refer to several different careers including underwriting for the public sector and economic research regarding governmental activities. Most students that pursue public finance do so through investment banking. Most investment banking divisions have a public finance group that provides underwriting for public sector activities, for example, municipal bond offerings. Experience in government and/or non-profit is valued and can help justify your interest in public finance.

Sales and Trading

Salespeople sell their firm’s research and debt & equity offerings to institutional research analysts and portfolio managers. Traders use their firm’s capital to make markets in various securities, including debt, equity, commodities, currencies, etc., for institutional clients. In the last decade, institutional sales & trading desks have decelerated their hiring practices, particularly for MBAs. An MBA does not carry a tremendous amount of value in these positions. A strong passion for the markets, a thick skin, strong communication skills, and a natural ability to network are critical.

Firms that focus on sales and trading include Bank of America, Credit Suisse, Goldman Sachs, J.P. Morgan, and Morgan Stanley.

Venture Capital

Venture capital (VC) is money provided by investors to startup firms and small businesses with perceived long-term growth potential. The venture capital fund makes money from owning equity in the businesses it invests in. For startups without access to capital markets, venture capital funds are an important source of funding. There is typically high risk involved for the investor, but there is significant potential for above-average returns. Most VC firms are small, comprised of former investment bankers, strategy consultants, and senior managers from the technology or biotech industries. Commonly, they have needs for analysts or associates with modeling skills, but generally do not have the infrastructure to support training or recruiting programs.

Venture capital firms include Bain Capital, Intel Capital, JP Morgan Partners, and Mayfield.