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Between 2006 and 2009, 0.1% of working doctoral graduates or 15 employed doctoral graduates, are known to have been working as investment bankers six months after graduation. Employers in this industry are constantly looking for exceptional candidates and there is probably the capability for more doctoral graduates to enter this profession each year.

Job description

Investment bankers are classified in the ‘other common doctoral occupations' cluster of doctoral employment.

Investment bankers provide a range of financial services to companies, institutions and governments. They manage corporate, strategic and financial opportunities, including mergers, acquisitions, issuing bonds and shares, lending, privatisations, and overseeing initial public offerings (IPOs). Investment bankers advise and lead management buyouts, raise capital, provide strategic advice to clients, and identify and secure new deals.

Investment banking is frequently used as a catch-all term. In reality, banks are made up of many divisions and investment bankers perform a range of different functions within them. Traditionally, investment banking incorporates corporate finance and mergers and acquisitions (M&A). The definition has blurred in recent years and may also include trading bonds and shares

Typical work activities

The main role of an investment banker is to advise companies, institutions and governments on how to achieve their financial goals and implement long and short term financial plans. Investment bankers work in dedicated teams, focusing on specific transactions or market sectors. They also work alongside other related professionals such as lawyers and accountants. Many investment banks deal in three main areas:

  • Mergers and acquisitions:
    Assisting clients with expansion to increase profitability, safeguard market position, diversify, etc. Corporate investment bankers manage the transaction process, assessing the target organisation and the impact of the deal. This involves knowledge of legal and regulatory issues as well as sound financial knowledge and an in depth understanding of the client's industry
  • Debt capital markets:
    Working with lenders such as financial institutions, agencies and public and private companies to support client debt. This includes restructuring debt, refinancing debt and raising new debt
  • Equity capital markets: Advising clients on how much capital to raise, from where and when

Typical activities on a day-to-day basis include:

  • Thoroughly researching market conditions and developments;
  • Identifying new business opportunities
  • Carrying out financial modelling, then developing and presenting appropriate financial solutions to clients
  • Liaising with the chief executive and chief finance officers of large organisations
  • Coordinating teams of professionals, including accountants, lawyers and pr consultants and working closely with them.

Entry requirements

Investment banks are generally interested in graduates and doctoral graduates from all disciplines. Selection is competency-based. Candidates are assessed on their ability to demonstrate a range of the skills considered desirable by the sector. These include:

  • Proven strong numerical and analytical skills
  • Excellent teamworking and team leadership skills
  • Communication and interpersonal skills
  • Project and time management
  • Dedication, energy and commitment
  • Self-confidence and ability to make difficult decisions
  • The ability to work under pressure and to cope well with stressful situations

Employers also look for commercial awareness and knowledge of financial markets. The competition for a limited number of vacancies is extremely fierce.

 

Salary

  • The average starting salary is between £32,000 and £40,000, with some companies still offering a golden handshake of around £4,000 to the most desirable candidates (salary data collected May 2010)
  • After three or more years, salaries may range between £50,000 and £75,000 (salary data collected May 2010).
  • Those with significant experience may earn a base salary of around £150,000 although a decline in the economic climate makes these top level salaries harder to find.
  • Pay is often performance-related.

Sector and disciplinary information

Sector information

This role is not found in a wide range of sectors. It is usually only found within the financial services industry.

Disciplinary background

Doctoral graduates from the following disciplines between 2006 and 2009 were working in investment banking six months after graduation:

Career stories

Ray Bowden.  Once a physicist, a stockbroker and now chairman of The Wine Society

"The job was fascinating. It involved visiting a whole range of companies and having access to chairmen, chief executives and finance directors, seeing their factories and getting to understand their businesses."
"The more exposure I have had to the business world, the more I have appreciated the benefits of the analytical disciplines that physics instilled in me. A key skill of an analyst is to ask the right questions, and a key skill of a physicist is to expect the answers, the opinions, and statements of others to be consistent with the available data."

Other relevant career profiles:

Ali Parsa         

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