Investment bankers are always in great demand and highly well-paid.
This is because investment banking deals with high finance and helps organizations and individuals raise capital or funds.
Investment bankers act as the intermediary between issuers and investors and hence, help companies go public. The profession in itself deals with multiple facets of financial services. According to an Investment Banking Global Market Report 2022, the global investment banking market grew from over $138 billion in 2021 to $152 billion in 2022. The investment banking market is expected to cross $200 billion in 2026.
Thanks to a series of big-ticket IPOs and the emergence of India’s tech unicorns from startups to matured listed entities. Investment bankers in India made Rs 2,200 crore in 2021 alone! According to data compiled by Refinitiv, the fee collected by bankers through share sale proceeds was more than three times at Rs 776.7 crore compared with 2020. With so much money at stake, investment bankers work in high-risk situations almost daily. They are employed as financial advisors to corporations and even governments at times. Investment bankers help clients raise funds and negotiate their mergers and acquisitions (M&As). Their income highly depends on their capital markets and commissions with every sale.
What are the roles of an investment banker?
Investment bankers play various roles in the companies they are associated with. Here are some of them:
- Arranging capital: Often, when trying to scale or start a new project, companies need to have all the required funding. So they need to raise some capital to start the project. That’s when investment bankers come in by planning to issue a bond, deciding on an appropriate price, and then selling it to buyers.
- Equity financing: Investment bankers help organizations plan their IPO by taking them through the entire process, assessing risks, and arranging an offering for potential investors.
- Deal underwriting: Investment bankers are responsible for underwriting deals for the associated organizations. This includes assessing the risks involved in the deal and making sure that the risk is minimized for the organization and profit is maximized.
- Private placements: For companies that don’t want to go public, investment bankers help them by arranging for private placements. They use their contacts and credibility to close the deal.
- Mergers and acquisitions: Investment bankers play an essential advisory role in any merger and acquisition process, as many financial decisions must be made.
What are the traits required to become a good investment banker?
Now that we know that investment bankers play various roles in organizations, it’s crucial to know that becoming a good investment banker goes beyond basic skills. The trick of the trade lies in acing multiple facets of financing. Here are the top five traits you need to become a good investment banker:
- Intellect: It should go beyond saying that a good investment banker must be intellectually gifted. Their knowledge in mathematics, analytics, economics, banking, and financing will help them generate the maximum profit for the organization they’re associated with.
- Discipline: Investment bankers need to do the standard 9 to 5. Their work usually goes beyond the regular hours and takes a lot of diligence and patience. Keeping up with such a work atmosphere requires a certain level of discipline.
- Communication: Being an investment banker comes with many difficult situations and people. Good investment bankers must know their way out of these, and good communication skills are the sure shot way out.
- Creativity: Most times, the best way out of a tricky situation is not the most obvious but the most creative. That’s a necessary skill for investment bankers to be able to come up with flexible yet profitable solutions.
- Open-mindedness: Investment bankers need an understanding of different cultures and societies. Their work is spread around such a vast perimeter that the more knowledge they have of the atmosphere, the better they can tackle it.
How can TKWs PG Program In Digital Banking And Finance help you become an investment banker?
India’s most awarded 1-year banking and finance program by TKWsIBF is now upgraded to help participants prepare for new-age career options like Investment Valuations, Financial Modeling, Fund Raising and many more. In addition, the program offers an integrated certification in Investment Banking to help you gain all the necessary traits to become a good investment banker.
The program’s dedicated lifetime placement support enhances your chances to enter the 7-digit salary club. The program’s high-impact format helps you prepare for a new-age banking career with
- Three experiential projects guided by industry mentors
- 24 professional skills development
- 24 banking and finance skills development
- Live global lectures from international guest faculty
- 100% guaranteed placement support
There is a demand for Investment Bankers with a promise of hefty compensation and job satisfaction. Talk to our program manager today to learn how TKWsIBF’s 1-year banking and finance program can help you kickstart your career in investment banking.