Investment Banker

Overview

Who is Investment Banker?

Investment banking is a subset of financial services provided by financial institutions and banks that assist state and federal governments, companies, and commercial and non-commercial banks with various transactions. It is primarily a financial advising sector that advises clients on different investments. Additionally, it focuses on managing and growing customers' financial assets. Investment bankers advise their customers on investment strategies and assist in executing such strategies.

This implies that investment bankers effectively operate as counsellors and brokers, analysing their customers' requirements and then recommending the appropriate solutions. Once the customer has chosen a course of action, it is up to the bankers to negotiate acquisitions and mergers, always keeping the client's best interests in mind.

Typical day at work

What does Investment Banker do?

Investment bankers assist their customers in raising funds in the capital markets via the issuance of debt or the sale of stock in their businesses. This position involves supporting clients with mergers and acquisitions (M & M&As) and advising them on novel investment options such as derivatives. Investment bankers may take on two roles: portfolio managers and fund managers.

While these professionals often work in offices, they may go to clients' locations to conduct meetings and presentations. Investment fund managers help their customers in identifying the most advantageous investment plan. Their objective is to assist their customers in making the most profit possible from their assets. Clients will meet with them to discuss their investment aims and needs.

Additionally, they may be responsible for analysing businesses and investment options to identify which ones are the most likely to be safe investments. As part of their tasks, they may be responsible for supervising investment purchases or transactions. Additionally, they monitor their customers' investments closely to ensure they operate as intended.

Investment bankers essentially serve as counsellors and brokers, assessing their customers' requirements and then assisting them in identifying and capitalising on excellent possibilities to satisfy those needs. Once the customer has determined their preferred course of action, it is up to the bankers to negotiate acquisitions and mergers while keeping the client's best interests in mind. In addition, investment bankers assist businesses in investing their assets to raise the portfolio value of their holdings.

• Collaborate and communicate with client firms, product groupings, and industry associations.
• Assist clients in managing their transactions and assist with capital structure, valuation, and risk management.
• Construct transactions and negotiate favourable conditions
• Assemble loans
• Interaction with corporate finance departments and capital markets specialists, among others.
• Maintain an eye on market circumstances (debt or equity capital markets)
• Connect with other financial strategy, derivatives, currency trading, convertibles, and equity derivatives experts.
• Work in mergers, acquisitions to set up deals, equity and fixed income research
• Take on equities, bonds, currencies, options or futures transactions for large institutional investors
• Facilitating the development of vehicle financing to channel cash flows to investors
• Deliver information about particular securities to institutional investors
• Maintain interface with portfolio managers, firm’s analysts, and traders
• Develop financial models to value debt and equity for mergers, acquisitions, and capital raising transactions
• Conduct various valuation methods: comparable companies, precedents, and DCF
• Provide recommendations for product offerings, private equity transactions, mergers and acquisitions, and valuations.
• Prepare and review financing materials such as investment memoranda, management presentations and pitchbooks, for clients
• Grow relationships with new and existing clients
• Execute due diligence, research, analysis, and documentation of live transactions
• Create presentations for client portfolios
• Raise capital through issuing debt or equity securities
• Valuation of transactions and financial activities, such as the performance of bonds and stocks
• Guide organizations in raising public or private funds over equity or debt offerings
• Perform business valuation analyses by using transaction comps, discounted cash flow, and leveraged buyout methods
• Research on company and industry for prospective clients and new business
• Participate in and manage all stages of a transaction, from the opening pitch to the closing investment contract.

Abilities & aptitude needed

What are the skills, abilities & aptitude needed to become Investment Banker?

• Financial literacy, comfort with numbers, immaculate research, mathematical and analytical abilities are necessary for success in this job. Additionally, one should be proficient in Microsoft Office, particularly Microsoft Excel and VBA. As a result, those with excellent professional communication and presentation abilities will also profit.
• A person considering a career in this profession must possess a high level of resilience and the capacity to deal with the repercussions when times get tough. The job is ideal for self-assured people with boundless passion, high achievers who are ambitious and competitive, with an exceptional work ethic and the capacity to operate under extreme pressure. Investment bankers must manage their time and tasks well, which involves focus, commitment, and a high level of energy.
• Along with strong leadership and teamwork abilities, one must be able to operate in a fast-paced setting with long work hours and little supervision. In addition, individuals must have an eye for detail and the ability to plan and monitor overlapping work to excel in this field.
• The excellent interpersonal, negotiating, and persuading abilities will benefit the investment banker's career. In addition, knowledge of transaction structure and closing principles will be advantageous. Investment bankers will also need sound judgement and decision-making abilities to make sound judgments.

Courses

Which course I can pursue?