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Qs about I-Banking

IBanking_hopefulIBanking_hopeful Registered User Posts: 6 New Member
edited June 2007 in Business Major
Hi, I've been getting into becoming an investment banker recently, and I have a questions about it:

I keep hearing about having to go to schools like HYPS in order to have a chance at investment banks, but aren't these mostly for the top of the line banks like Goldman? Couldn't someone get a job at a "lesser" bank and not have to go to those types of schools, because lets face it, not everyone, even people who seem overly qualified can get into those types of schools. I was wondering what happens to those that can do it, but have to go to a state school for whatever reason (excluding the super state schools like Berkeley, UCLA, Michigan, Texas, etc.)? Lets say I have to go to my state school because I don't want to pay for the tuition at more prestigious schools, can I still go to the second tier of bankings and eventually get into the specialities like hedge funds, S&T, VC, etc? Also, if you do get into VC, do the hours/stress improve from just doing investment banking? Although I love the job description of IB, I don't want to work that much for the rest of my life, so what are conditions like after specializing?
Post edited by IBanking_hopeful on
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Replies to: Qs about I-Banking

  • nodnardnodnard Registered User Posts: 467 Member
    "I keep hearing about having to go to schools like HYPS in order to have a chance at investment banks, but aren't these mostly for the top of the line banks like Goldman? Couldn't someone get a job at a "lesser" bank and not have to go to those types of schools, because lets face it, not everyone, even people who seem overly qualified can get into those types of schools."

    No. If every bank only takes about 20 full-timers a year (and this is a very generous estimate) and 10% of the student populations at top 25 schools want to break into i-banking, that's already way more than enough to fill every spot. If you don't go to: Ivies, Chicago, Duke, MIT, Stanford, Northwestern, Georgetown, Amherst, Williams, Caltech, NYU-Stern, Michigan (Ross), Berkeley (Haas), Texas (McCombs), UVa (McIntire), you don't stand much of a chance to get into i-banking.

    And try doing some reading before posting 8000 general questions that would take an hour to answer properly.
  • sophomore12sophomore12 Registered User Posts: 1,095 Senior Member
    nodnard... the bigger banks, like Bulge Bracket Banks probably do take more than 20 full-timers... keep in mind they have many departments and divisions, each probably taking at least 2... but I do agree about going to a top business program...
  • red sox 7327red sox 7327 Registered User Posts: 765 Member
    BB Banks take much more than 20 a year. Much, much, much, more. Nodnard, keep in mind that there are 100's of boutiques many of which recruit at nearby schools. That is not to say that many students will be hired from any particular non-target school but most schools will get at least 1 hire.
  • baloogafishbaloogafish Registered User Posts: 198 Junior Member
    I assume that you're a HS junior trying to get a head start on his career. I'll be the first of many to tell you, its a bit too early to be thinking about that kind of stuff. Go out and have fun and don't worry about investment banking or any career that you might be interested in, mainly because many, MANY people always change their minds.

    Regardless, I think that its good that you have an idea of where you want to go in life and what you want to do. I also find it very admirable for somebody of your age NOT to ask any questions about the compensation of investment banking. With that being said, you are just about in the same boat that I was in. In HS, I was leaning towards doing law/banking after graduating college. I was a decent enough student with decent EC's and I got into a couple of T20 UG schools. Unfortunately, I wasn't good enough to get money from scholarships, and too well off to get financial aid. Moreover, I didn't want to burden my parents by going to a school that was more than 30K per year, and that was out of state.

    Instead, I decided to head up to UTexas in Austin, which is only a mere 9K per year for tuition (I'm a Texas resident). While I know that I would've had much better connections at a top school, I'm really loving being a standout at UT. So, my advice to you, is that if you can't afford, or don't want to afford, the top schools, (IMO, only HYPS and Wharton are worth the money, if you're looking at IBanking), try and go to a big state school. You'll have a ton of fun, and if you were an Ivy candidate, you'll be a superstar in your state school, so long as you bust your butt.

    IMO, the smaller state schools (Think Texas A&M, UCSD, UIlliniois, etc), schools that play a smaller role in their state's education system, are going to be a lot harder to break into banking. They just aren't target schools for NYC. I've posted otherwise about working in areas other than NYC, and you should search around for that.

    Sorry to drag on for so long, but, all in all, my advice to you is go to a big state school that is a semi-target for banking, if you're really set on that path.

    EDIT: And the smaller banks in NYC that you're thinking of breaking into are just as difficult to enter into as the Bulge Bracket banks. Some people just don't want the huge atmosphere of a BB, so they stick with a MM bank. Definetly not an easier route to take, I'd have to say. Those MM's take much less than the BB's and are tough to break into unless you go to a target or have some major connections.

    PE, VC, and HF are three of the most prestigous exit opps for bankers. Middle market and BB analysts both leave their banks to go to these respected fields. Granted, the hours are better for those three than banking, w/ the exception of your analyst years at a top tier PE shop (I hear their hours are absolutely brutal, worse if not the same as IB), and the pay is also a lot higher. But, of course, these shops usually recruit from BB's and you've got to be a star at the MM banks to enter the conversation of PE/VC/HF. Right now, everybody is gunning for those fields b/c they're so hot, and likewise, the level of your peers rises exponentially. Of course, after you progress through the system, hours do get better (MD's at IB's work <60 Hr weeks, on avg.), but the traveling at PE shops really increases. I'm not too sure about HF/VC, but I'd assume that you definetly wouldn't have to work as much, but rely more upon your people skills.

    As for HF though, not to burst your bubble, but, I've heard breaking into a HF is incredibly hard. They take ridiculous quant guys (Think upper echelon MIT guys), guys with incredible backgrounds, or people that are incredibly well connected. To be honest, I've never even heard of a guy breaking into HF from a MM bank. I remember a while back reading a list of lower-tier HF guys at DE Shaw and I saw nothing but Harvard/MIT UG, HBS, and just a couple of Wharton kids. It is really, really hard to break into.
  • DawgieDawgie Registered User Posts: 1,576 Senior Member
    I didn't read the post, but chances are you aren't getting into Ibanking.
  • awesome11awesome11 Registered User Posts: 4 New Member
    so the schools mentioned above are the only ones with a realistic chance? what about BC or URoch?
  • IBanking_hopefulIBanking_hopeful Registered User Posts: 6 New Member
    "I didn't read the post, but chances are you aren't getting into Ibanking."

    Yeah you're probably right. I'm not a bad student,at least I don't think so, but I'm not really a superstar either, which really sucks. I have a 3.87 GPA in the hardest classes and a 30 on the ACT, which probably wont get me into HYPS, so I guess I'm screwed. And unfortunately, my state schools ASU and UA are pretty trashy, and not exactly the type of places I want to go for college. But I was wondering what are some other good fields that people can enter if they dont get into an investment bank? My requirements for the field are only this:

    1. If its not investment banking and I'm not going to be making something similar to that, I dont want to work really bad hours (in my mind, if one includes the weekends, as in working from home on the weekends, >60 is pushing it for not getting compensated well).

    2. It should have decent job security. See, I would have consulting as a backup because its good hours, and its hiring is regional, so its not necessary to go to wharton only to be recruited. However, (correct me if I'm wrong) I've heard that job security is terrible in that field and the need for consulting is going down.

    3. One dont have to go to HYPS to be considered for a job.

    4. One can make pretty good money. Sorry to dissappoint mtrizzle, but I do care about money. I'm not worried about I-banking because I know they make bank, but I'm also not willing to sacrifice money if I can't have a life outside of work, which is why I asked if hours improve after awhile or as you move up. I mean whats the point of owning a ferrari if you are working too hard to race with it right ;), however, although I'd rather own a simple BMW 3 series and a nice house, the problem is I'd like to earn enough so that I CAN afford that BMW and nice house lol. The problem with biz is that I keep seeing that you have to wait a very long time before you start making money, and I dont really want to have to wait 14 years after getting an MBA to become promoted to director or something start making money in an industry like marketing. My goal in life as far as money is concerned is to make around 120-150k, but like I said, I don't want to keep working with the same people for a really long time and then only make money after becoming a CFO (and for a job like that, even people who are with companies for a long time don't get promoted). If I have no other choice though, I'll do it then.

    Btw, it seems corporate finance will be a good fit for me, so does anyone know about what that type of work is, the hours, salary, etc.?
  • red sox 7327red sox 7327 Registered User Posts: 765 Member
    Hehehe...

    IBanking_hopeful = california_love8.

    Dude, you only need one user member name.
  • jnpnjnpn Registered User Posts: 787 Member
    My goal in life as far as money is concerned is to make around 120-150k

    investment banking isn't for you
  • TheMK99TheMK99 Registered User Posts: 1,019 Member
    red sox 7327 wins
  • VectorWegaVectorWega Registered User Posts: 1,872 Senior Member
    Consulting has good hours? Working long hours plus traveling every week = good hours?
  • baloogafishbaloogafish Registered User Posts: 198 Junior Member
    Is it me, or does everybody that starts a thread on this site in search of a job with good security, low hours, and high pay? Call me crazy, but I don't think such a job exists, unless you've paid your dues.
  • IBanking_hopefulIBanking_hopeful Registered User Posts: 6 New Member
    "Hehehe...

    IBanking_hopeful = california_love8.

    Dude, you only need one user member name."


    why do you say that? For one thing, I did a search, and that guy lives in Oregon, while I live in arizona. I admit, we do have similar interests in business, but I also noticed he's posted a lot in the engineering forums and stuff as well, while I'm pretty much set on biz (well at least for now). And if its because of our similar interests, as mtrizzle said, a lot of us are looking for those qualities in a job.
  • sophomore12sophomore12 Registered User Posts: 1,095 Senior Member
    Come on people, let's not get into a fight...
  • IBanking_hopefulIBanking_hopeful Registered User Posts: 6 New Member
    no one's fighting (at least I don't think), I'm just trying to disprove a theory that I'm someone else on the thread.
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This discussion has been closed.