Investment Banker Job Description: Top Duties and Qualifications

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An investment Banker, or Investment Banker Analyst, helps clients raise their capital by selling equity or issuing debt. Their main duties include preparing financial and legal documents, overseeing and managing financial mergers and reviewing market trends and other financial information.

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Investment Banker Duties and Responsibilities

Investment Bankers have the responsibility to assist clients in their financial operations. They buy and sell securities to raise capital. They must research, analyze and recommend investments. They also build relationships with clients to expand the investment banks’ business. Here are the most common duties of an Investment Banker:

  • Conduct due diligence investigations.
  • Manage IPO.
  • Assess risk and provide financial advice on mergers and acquisitions, valuations or private equity transactions.
  • Complete reporting, create models and forecasts.
  • Underwrite, analyze and close finance deals.
  • Negotiate and structure financial details.

What Does an Investment Banker Do?

Investment Bankers collaborate with business professionals or individuals in building their capital. They conduct research on common financial and market trends to build and implement detailed financial models. These models will help businesses accurately determine their profitability and review certain financial deals. 

Many of them supervise and oversee IPOs and any private equity settlements. They also manage and support clients during corporate expansions and any personal enterprises they pursue. Investment Bankers are also responsible for examining all risks that come with certain investments and advise their clients accordingly.

Investment Banker Skills and Qualifications

Investment Banker candidates should have specific skills to accomplish their duties efficiently. A solid understanding of the financial market and its current development is a crucial asset to excel in this position. The ability to communicate in a professional manner, even when under pressure is also valuable. Finally, they should demonstrate determination and adaptability. Other useful skills to excel in the position of Investment Banker include:

  • Excellent verbal and written communication skills
  • Valuation, forecasting, and modeling experience
  • Knowledge of securities and M&As regulations 
  • Outstanding analytical and mathematic skills 
  • Strong work ethic and professionalism
  • Detail-oriented
  • Decision making skills

Investment Banker Salary Expectations

The average salary for an Investment Banker is $60,334 per year. Investment Bankers usually earn a base salary and have the opportunity to earn a significant bonus. They can sometimes gain commissions on securities they sell or bonuses when they close deals like mergers and acquisitions.

Investment Banker Education and Training Requirements

The Investment Banker position requires a degree in business administration, finance or a similar field with courses in economics and accounting. A Master of Business Administration degree is the most common among investment professionals. Candidates can start at entry-level positions with a bachelor’s degree, but high-level positions require an MBA. Law degrees can also be useful. Investment Bankers must be registered as a representative of their bank with the FINRA (Financial Industry Regulatory Authority). To do so, they need to pass an examination and attend continuing education. The Chartered Financial Analyst certification is an asset as it demonstrates the candidate’s knowledge in financial markets.

Investment Banker Experience Requirements

Although internships in a finance work environment are an asset for first-year hires, employers don’t typically require experience from Investment Banker candidates holding a master’s degree. A candidate who didn’t complete a master’s degree should have at least three years of experience in a finance or business position. Previous contact with securities, stocks and bonds is valuable. They should also demonstrate computer proficiency with the Microsoft Office suite.

 

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Frequently asked questions about Investment Bankers

 

What settings do Investment Bankers work in?

Most Investment Bankers work directly for banking entities, meeting with clients in their work areas to establish their needs and banking preferences as a business. Some of them work independently and find their own clients to advise and appear at their offices on an as-needed basis to set up investment plans and connect them with the necessary Bankers and organizations. 

There are also Investment Bankers who work within a business and are regularly in the office collaborating with the senior and leadership teams to establish and build financial plans and reports for the company’s financial success. 

 

What's the difference between an Investment Banker and a Stockbroker?

Though they both work closely with clients advising them on financial advice and connecting them with potential investment opportunities, there are some key differences between the two when it comes to their work duties and responsibilities. Stockbrokers work with company executives to advise them on which financial securities to purchase. They usually teach smaller, short-term investors about the basics of investing and financial markets to help them earn short-term gains. 

Investment Bankers typically handle bigger-picture investment opportunities by helping larger companies and some smaller startups raise capital either from private companies or from the general public. They work solely to provide investment capital to businesses that need it. 

 

Who do Investment Bankers report to?

Investment Bankers typically report to the senior members of a business. They’ll build financial reports and create financial models and plans for leadership and management teams to closely follow. If they’re independently owned, these are the primary clients they’ll often report to. 

For those who work in investment or banking firms, they’ll usually report to the Senior Investment Manager or the head of their financial teams. They’re often in charge of assigning certain clients to each Investment Banker, then overseeing their progress on certain tasks and responsibilities. 

 

What makes a good Investment Banker?

An Investment Banker must have strong customer service and interpersonal skills to help them successfully evaluate the needs of certain business professionals and convince them to purchase an investment plan that meets these needs. They should also have strong analytical and quantitative abilities to help them regularly review a company’s analytics and statistics to help build financial and investment plans that improve the company’s financial status and performance.

Investment Bankers must also have effective research skills and be passionate about regularly keeping up on current market trends. This allows them to more accurately advise and guide their client on the best investment opportunities for them to pursue.

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