+91 9580 740 740 WhatsApp

All You Need to Know About Investment Banking Associate Job Profile

An Investment Banking Associate plays an essential role in the field of Investment Banking, contributing to different aspects of financial transactions and advisory services. They are the first point of contact for a client and work as a customer representative. An Investment Banking Associate role is a support role. They provide analysis and research to investment bankers who are cracking new deals and executing transactions and also play an important role in client management. They are MBA graduate promoted to VP level after 3 years of experience.

Investment Banking Associate

The role involves working with senior bankers, and clients to execute deals, financial analysis and strategic advice. Associates generally play the role of “Middleman”. Following is the overview of the Investment Banking Associate job role:

Financial Analysis: In-depth financial analysis and risk management, including financial modelling valuation. Industry trends, company financial statements and economic indicators for assessing clients’ financial health and potential investment opportunities.

Deal Execution: The role of an Investment Banking Associate involves executing Mergers and acquisitions transactions (M&A), Initial public offerings (IPO), and many other financial transactions.

Client Interaction: To understand clients’ financial goals, their business strategies, and objectives. Investment Banking Associate help clients clear their queries regarding transactions.

Due Diligence: Identifying risk and collaborating with the legal accounting and other teams.

Market Research: Industry developments, regulatory changes, and staying informed about the market trends are some of the roles of Investment Banking Associates and preparing market research for decision-making support.

Relationships Building: Identifying new business and potential clients under the guidance of senior bankers. Maintaining relationship with clients, investors and stakeholders help in the growth of a business for Investment Banks

Team Collaboration: Working closely with senior bankers, and analysts, for the seamless execution of transactions

Providing guidance to juniors or colleagues and delegating tasks to them is a part of the Investment Banking Associate role.

Financial Modeling: To maintain complex financial models to support valuation, pricing, and other financial analyses

Negotiation Support: To help senior bankers in negotiating deals and they also help investors, clients, and other parties in the context of the transaction or final deal.

Documentation: Compliance with regulatory requirements and internal policies before deal finalization proper documents are required along with preparing legal and transactional documents.

Skills and Qualifications of An Investment Banking Associate:

Financial Decision Maker: Strong understanding of accounting, principles, valuation and financial concepts.

Analytical Skills: Having a detailed and accurate knowledge of financial analysis is one of the required skills of an Investment Banking associate.

Client Focus: A strong client relationship can successfully be maintained by delivering value add-ons by understanding their needs.

Industry Knowledge: Stay up to date about industry trends and rules and regulations including market conditions helps any investment bank to grow successfully.

Time Management: Managing multiple tasks and meeting deadlines is an important role of an Investment Banking Associate and Time Management is a way for any successful business

Communication Skills: Preparing reports, and presentations and interacting with clients are important roles and only possible when the Investment Banking Associates have good written and verbal communication skills.

Teamwork: Working in a team with a positive environment in a fast-paced is extremely important for any Investment Bank to grow successfully.

Education and Experience of An Investment Banking Associate:

A bachelor’s degree in finance, accounts and business is typically required. Investment Banking Associates also hold a Master’s in Business Administration (MBA) and Chartered Financial Analyst (CFA) degrees.

Prior relevant experience working in previous roles in Investment Banking.

Also Read,

Duties of an Investment Banking Associate:

Investment Banking Associates work in the investment banking industry and are responsible for generating investment leads and new business, analyzing potential customers and working with clients. Managing client investments daily is one of the vital duties of an associate.

Difference Between Associates and Analysts:

Investment Banking Associate and Investment Banking Analyst roles, both are entry-level jobs, but the position of an associate is considered to be one position higher than the analyst. An associate is a higher-level position in any organization and most associate role requires highly trained skills before entering for this job role. These designations are majorly used in large banks like J.P Morgan, Citi Bank, HSBS, Credit Suisse and KPO which helps these banks follow a similar designation hierarchy. Let us see some of the differences between Associates and Analyst in terms of hierarchy, qualification, promotion, day-to-day work, hectic schedule and client-facing:

  • Associates are Senior Designations to Analyst. The analyst is a junior position in Investment Banking but after certain years of experience, an analyst is promoted to associate.  The role of an Analyst is to assist Associates in the work allotted to them.
  • MBA’s are directly hired as Associates or with an experience of 2-3 years whereas Analyst are graduates or undergraduates hired for this role.
  • Generally, An Associate is promoted to VP in 2-3 years whereas an Analyst takes almost 2-3 years to be promoted to an Associate.
  • The analyst role is less hectic and more monotonous than the associate’s job.
  • Interaction with clients along with their senior bankers is a vital role of an associate, whereas an analyst has nil interaction with clients.

Hierarchy of An Investment Bank:

To have a better understanding of different roles and hierarchy let me take you to the list:

  • Investment Banking- Analyst
  • Investment Banking- Associates
  • Investment Banking- Vice President (VP)
  • Investment Banking- Senior Vice President (SVP)
  • Investment Banking- Managing Director

Below Are the List of the Institutes Known for Providing Investment Banking Course:

1. IIM SKILLS-

IIM Skills is one of the leading online education institutes which is headquartered in New Delhi, providing a high-grade Investment Banking Course, Marketing, Data & multiple educational domains. It originated after a successful educational blog as an online career guidance for millions of people and that is how decided to start a full-fledged training program. They provide world-class education at affordable prices and work hard continuously for various skill development to help students upskill their profession in a few months.

Highlights Of The Course:

  • Online Investment Banking Course that is led by an expert for 3 months
  • 70+ Hours of lecture ( 50+ Hours of training and a few hours of doubt-solving)
  • Pay in 7 Interest-Free EMI
  • 100+ Hours of Practical Assignments
  • 1 Month guaranteed internship | 100% job support
  • LinkedIn profile building
  • Mock Interview Preparation
  • Lifetime Support | Capstone Projects | Resume & Interview Preparation
  • IIM Investment Banking master Certificate recognized by MSME Government of India
  • Lifetime free access to courses and material via LMS. Students get an opportunity to learn anytime from anywhere!

Benefits of Doing the Course from IIM Skills:

  • Anytime, Anywhere Access
  • Super Interactive Session
  • Flexible scheduling
  • Expert Faculty
  • Learning Resources
  • Master certification
  • Comprehensive Courseware
  • Internship and Placement Support
  • Complimentary Services
Module 1MS PowerPointModule 5Technicals of Investment Banking
Module 2MS ExcelModule 6Different Marketing Collaterals
Module 3Financial System and MarketModule 7Technicals of Financial Modeling
Module 4Derivatives MarketModule 8Business Valuation

Modules of the Investment Banking Course explained in Detail:  

Module 1- PowerPoint (4-6 Hours)

  • Introduction to MS PowerPoint
  • Keyboard shortcuts and their importance
  • Creating, Managing and designing slides
  • Adding transitions and animations
  • Formatting by using themes and different colour
  • Creating the slide master
  • Inserting pictures, and links and editing them
  • Working on illustrations and shapes

 Module 2- MS EXCEL (8 Hours)

  • Introduction to MS Excel
  • Keyboard shortcuts and their importance
  • Uses of functions like Vlook, Hlookup, Index, Match, Offset, Paste Special, Concentrate, and Indirect among others and their combination
  • Rules of conditional formatting
  • Font and Number Formatting
  • Concept of freezing of cells, rows and columns
  • Excel is used for validating data functions as well as formulas
  • Table functions and dynamic arrays
  • Introduction to Micros
  • No limit to bar graphs, line charts, combo charts, football fields, scatter plots, histograms, Pie charts, waterfalls, stacked chart
  • Sparklines
  • Sensitivity analysis using Data tables
  • Dynamic dashboards
  • Columns functions like delimit, Flash fill, return functions like IRR, XIRR, NPV, XNPV to text
  • Iterative calculations and circular referencing
  • Goal seek, Scenario manager and Data Table analysis to be used

Module 3- Financial System and Market

  • Basics of Financial System
  • Primary Market, Secondary Market, Capital Market and Money Market are different kinds of financial system
  • Market participants and regulators
  • Stock exchange and Financial centres
  • Equity and preference shares
  • Understanding of long and short positions
  • Meaning of depository receipts
  • Characteristics and types of bonds
  • What is bond price, interest and yield- its meaning and concept in brief
  • Yield to maturity
  • Forex and its features
  • Quotes and Trades

Module 4- Derivatives Market

  • Introduction to derivatives
  • Forward, future and options
  • Long and short-term positions and to understand their concept
  • Discussion of call and options
  • What are swaps and their different types including equity, interest, forex,
  • Meaning of Speculation and Hedging
  • Overview of credit default swaps

Module 5- Investment Banking and its Technicity

  • Overview of Investment Banking
  • Investment Bankers and How His Role Is Vital for Investment Banking
  • Types of Three Important Investment Banks
  • Vertical and Horizontal Mergers
  • A sell-side life cycle
  • Concept of due diligence
  • Different funding stages
  • Concept of underwriting and building approach
  • Overview of Greenshoe option
  • Understanding of corporate restructuring and turnaround
  • Discussion on tender offer and Leveraged buyout

Module 6- Different Marketing Collaterals (6-8 Hours)

  • Buyers list or Investors list
  • Non-disclosure agreement (NDA)
  • Pitchbook/ Pitch deck
  • Teaser
  • Confidential Information Memorandum
  • Financial Models

Module 7- Technical of Financial Modelling

  • Introduction to financial modelling
  • Creating scenarios using index, choose, and scenario managers
  • Forecasting the three financial statements
  • Preparation of different schedules including equity, working capital, fixed assets
  • Financial modelling practices and error tracking
  • Tips for formatting key including print set-up

 Module 8- Business Valuation (4 Hours)

  • Difference between GPC and GTM
  • Difference between deal and transaction value
  • Criteria to screen peers
  • Valuation multiples to be used
  • Calculation of enterprise value and other components
  • The ideal period to focus on last twelve months, Next twelve months, historical years and projected years
  • Concepts of controlling premium
  • NAV approach for valuation
  • Relevance of the approach
  • Concepts of pre-money and post-money valuation
  • Presentation of valuation output
  • Blended valuation presented through the football field
  • Concepts of leveraged and unleveraged Beta

Other Professional Courses from IIM SKILLS

Course Fee: INR 39,900 + 18% GST

Contact details: +91 9580 740 740

Email: [email protected]

 2. Corporate Finance Education (CFI)-

Corporate Finance Education is an online institute providing various courses on the combination of financial study, self-study and practical experience. BA’s basic understanding of finance for any successful business growth is included in this course at Corporate Finance Education (CFI). AWell-designed courses with proper training in investment banking are given to the learners who opt for this course. This training program is for a month, starting in summer The CFI training programs are designed in such a way that will also help you in preparing for the interviews.

Financial Modelling Using MS Excel:

  • Financial Modelling and Valuation Analysis Program
  • Classroom/ Live Online Class/ Self-paced
  • CV Preparation and Mock Interviews
  • 100% placement assistance
  • Weekend and Weekday batches

Financial Modelling Using MS Excel Curriculum Highlights:

  • MS Excel Training- Basic to Advance
  • MS PowerPoint Skills
  • Financial Statement Analysis
  • Business and Financial modelling
  • DCV Valuation
  • Comparable Company Analysis
  • Comparable Transaction Analysis
  • Introduction to Project Finance
  • Company Profile and Pitchbook
  • Capstone Project
  • Soft skills Training and RResume-building certificate in Investment Banking:
  • Financial Modelling And Valuation
  • Merger & Acquisition, Pitchbook, Fund Raising
  • Company Profiles and Industry Analysis
  • Equity Research Report Writing
  • Interview Soft Skills and CV Building
  • Weekend and Weekday Batches

Certificate in Investment Banking Curriculum Highlights:

  • MS Excel Training- Basic to Advance
  • MS PowerPoint Skills
  • Financial Statement Analysis
  • Business and Financial Modelling
  • DCV Valuation
  • Comparable Company Analysis
  • Comparable Transaction Analysis
  • Introduction to Project Finance
  • Company Profile and Pitchbook
  • Industry Analysis, Benchmarking and Charts
  • M&A Merger Modelling
  • Introduction to Credit Analysis
  • Introduction to Stock Market Investments
  • LBO Modelling (Optional)
  • Soft Skills and CV building

The course will help you in the following domains

  • Investment Banking Research
  • Equity Analysis Research
  • Financial Advisory
  • Credit Analysis
  • Project Finance Modelling
  • Financial Analysis

2. Indian Institute of Management Indore-

IIM Indore is an autonomous business school that ranks 8th in the country for its successful training courses designed as per industry standards giving benefits and wonderful placement opportunities by enhancing the skills of its learners.

A certified course with a certificate as “Post Graduate Certificate Programme In Investment Banking”.

Highlights Of The Course:

  • IIM Indore offers Investment Banking for participants from any stream
  • RReal-life understanding of Investment Banking and Commerce.
  • Alumni executive education
  • Campus immersion module

Content Of the Course:

  • Financial Reporting, Analysis and Valuation
  • Financial Management
  • Investment and Portfolio Management
  • Investment Banking- 1 and 2
  • Mergers & Acquisitions
  • Options, Futures and Derivatives
  • Economic Environment
  • Spreadsheet Modelling for Finance
  • Industry lecture

Courses and Training Offered at Indian Institute of Management (IIM) Indore Are:

  • Accounting Fundamentals
  • Financial Statement Analysis
  • Financial Modelling
  • Corporate Valuation
  • Excel skills
  • Corporate finance
  • Mergers & Acquisition

Eligibility For The Course Completion:

Diploma or Bachelor’s degree or equivalent or 2 years Master’s degree or equivalent from a recognized university with minimum 50% marks of all the years.

Minimum 2 years of work experience is required on post-completion of qualifying education

Course Duration: 12 Months

Course Fees: INR 4,00,000

3. Symbiosis School of Banking and Finance (SSBF) –

Symbiosis School of Banking and Finance (SSBF) is a Deemed University and is recognised by UGC and AICTE. It is a well-known institute with global recognition and is recommended as one of the best institutes for Investment Banking courses. The course name is MBA and Banking and Finance Management.

The Course is Divided Into Semesters That Include:

  • Perspective of Business Finance
  • Business Statistics
  • Banking Operations Management
  • Insurance Management
  • Derivative Markets
  • Microfinance and Developmental Banking
  • Credit Management
  • International Finance
  • Forex and Treasury Management
  • Fixed Income Markets
  • Consumer Behaviour
  • Taxation
  • Corporate Governance and Ethics

Contact Details: [email protected]

Must Check,

4. BSE Institute-

BSE Institute offers multiple world-class courses related to financial markets to guide their students who are interested in upgrading their skills and are up to the market standards. BSE offers an online Investment Banking course for seven months and offers Ma aster’s program from Mumbai University and PG Certification Programs from many International Universities.

Some Of The Preferred Career Domains are:

Investment Banking can be a rewarding career if you like figures, have a nag of dealing with a client on a day-to-day basis and help them reach their financial goals. It is a high-demand job with multiple possibilities for advancement.

Private Equity Associate: They are professionals working in the field of Private Equity with a strong background in finance and is responsible for Mergers & Acquisition. Raising capital and using it to acquire or invest in companies to generate higher return values.

Mergers & Acquisition: Merger and Acquisition is a process of combining two companies in a single entity. In this process, one company with high turnover buys another company and becomes one company.

Risk Management: It is a process of identifying and evaluating risk. The goal of risk management is to understand and eliminate all the risks. This tool helps organizations to recognise problems and reduce the risk by making informed decisions.

IPO: Initial Public offering is a process in which a Private company is acquired by a Public company by sharing its shares with the public for the first time. In this process, the existing shareholders sell their shares to the public.

Highlights Of The Program:

World-class practitioners are appointed as the faculty who have intensive knowledge of successful teaching methods

Each course is designed as per industry standards and by industry experts

Learning as per the requirements that benefits the students

Globally recognized certificates

This program will help you get through some of the International Universities

A large campus with many facilities to help you grow your network by meeting market merchants

It is a live virtual class and can be conducted from anywhere.

Academic Partners At BSE Institute:

  • Western Sydney University
  • University of Otago
  • HBSU
  • GLA University, Mathura
  • Techno India Group
  • UPES School Of Business
  • Rennes School Of Business
  • Indian Institute Of Technology, Madras
  • Lucens ET Ardens
  • Simon Fraser University
  • University of Canterbury
  • Gannon University
  • Ohio University
  • Techno India Group
  • Chitkara university, Punjab

Eligibility Criteria:

  • Graduate from any stream is eligible for the course
  • Education from any recognized university is applicable
  • Keeping working professionals in mind this program is designed to help them
  • Students in their final year can also pursue this course

Syllabus included in this Course are:

Financial Market includes:

  • Financial System
  • Investment Banking
  • Equity
  • Debt
  • Securitisation
  • Money Market
  • Foreign Exchange
  • Commodity Markets
  • Derivatives

Investment Banking includes:

  • Investment Banking
  • Trade Lifecycle
  • Reference Data Management
  • Global Security Operations and Settlements
  • Corporate Actions
  • Collateral Management
  • Reconciliation
  • Assets management

Risk Management:

  • Risk Management
  • DFAST
  • CAR
  • Recovery and Resolution Plan
  • Introduction to Regulators

FAQs About Investment Banking Associate:

Q. How do Investment banks make money?

Investment banks make money through selling and buying Asset Management, Underwriting, Mergers and Acquisition, Sales and Trading. These Investment Banks work on a commission basis, mostly depending on the size of their business and also based on their Brand name and reputation in the market.

Q. How do Investment Banks compete with others?

There is a cut-throat competition among the all the Investment Banks.

To compete with their competitions, most investment Banks follow below mentioned tricks:

  • Hire Industry’s Best Talent
  • Through acquiring new and retaining new and old clients
  • Providing Pricing and Commission to their clients that is better than their
  • Competition
  • Past deals

Q. What are the job roles in An Investment Bank and different departments?

The most recognized job role in an investment bank is the role of:

  • Analyst
  • Associate
  • Vice President
  • Senior Vice President
  • Managing director

The few departments in any investment bank are:

  • Private Equity
  • Mergers and Acquisition
  • Underwriting
  • Venture Capital

Conclusion About Investment Banking Associate role:

The Investment Banking role comes with its pros and cons. An Investment Banking Associate role has a great demand in the industry whereas the cons of this role are long and hectic working hours, especially during closings or tight deadlines. They should also be used to working under pressure. The role of Investment Banking Associate is in demand and has a lot of exposure and valuable experience in the financial market.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

*