Breaking into Investment Banking: The 2025 Guide
Complete guide to landing an investment banking job. Covers recruiting timeline, interview prep, networking, and what banks look for.
Investment banking remains one of the most competitive and rewarding entry points into finance. This guide covers everything you need to know to break in — from recruiting timelines to interview preparation.
What Banks Look For
Key Candidate Attributes
| Term | Definition | Note |
|---|---|---|
| Academic Excellence | High GPA from target school | 3.5+ ideal |
| Technical Skills | Accounting, valuation, Excel/PPT | Learnable |
| Work Ethic | Ability to handle 80+ hour weeks | Critical |
| Communication | Clear, concise, professional | Tested in interviews |
| Attention to Detail | Precision in work product | Mistakes cost deals |
| Cultural Fit | Team player, coachable | Want to work with you |
Recruiting Timeline
Undergraduate Recruiting
UG Timeline
| Term | Definition | Note |
|---|---|---|
| Sophomore Summer | Target internships in finance | Build resume |
| Fall Junior Year | Applications open (Aug-Sept) | Bulge bracket |
| Fall Interviews | Superdays (Sept-Nov) | Compressed timeline |
| Junior Summer | SA internship | Convert to FT |
| Senior Year | Return offer or lateral recruiting | Most have offers |
Warning
Recruiting is EARLY. Bulge bracket banks recruit 1.5-2 years before start date. If you want to start as an analyst in July 2026, you're interviewing in Fall 2024.
A non-target student wants to break into bulge bracket IB. What's the MOST effective use of their time 18 months before recruiting?
MBA Recruiting
MBA Timeline
| Term | Definition | Note |
|---|---|---|
| Summer Before MBA | Pre-MBA networking | Start early |
| Fall First Year | Info sessions, coffee chats | Build relationships |
| Winter First Year | Applications and interviews | Jan-Feb |
| Summer Internship | 10-week SA program | Convert to FT |
Target Schools Matter
Note
Reality check: Banks recruit heavily from "target" schools. If you're not at one, you need to work harder on networking.
School Tiers (US)
| Term | Definition | Note |
|---|---|---|
| Super Targets | Penn, Harvard, Princeton, Yale, Stanford | Most access |
| Targets | NYU, Michigan, Duke, Berkeley, Columbia, etc. | Strong access |
| Semi-Targets | Notre Dame, Emory, UT Austin, etc. | Need to hustle |
| Non-Targets | Most other schools | Requires extensive networking |
Networking Strategy
The 80/20 Rule
80% of IB jobs come from networking. Applications alone rarely work, especially at non-targets.
How to Network Effectively
Networking Approach
| Term | Definition | Note |
|---|---|---|
| LinkedIn Outreach | Connect with alumni at target banks | Personalize message |
| Coffee Chats | 15-30 min calls, ask for advice | Don't ask for jobs |
| Info Sessions | Attend all relevant events | Follow up after |
| Alumni Network | Your school's alumni are most helpful | Shared experience |
| Warm Intros | Ask contacts to introduce you | More effective |
Sample Outreach Message
"Hi [Name], I'm a [year] at [school] interested in IB, particularly [group/coverage]. I saw you work at [bank] in [group]. Would you have 15 minutes for a call to hear about your experience? I'd really appreciate any advice."
Interview Preparation
Technical Preparation
Must-Know Technical Topics
| Term | Definition | Note |
|---|---|---|
| Accounting | Three statements, how they link | Foundation |
| Valuation | DCF, Comps, Precedents | Core skill |
| EV/Equity Value | Formulas, when to use each | Very common |
| M&A Basics | Accretion/dilution, synergies | Shows interest |
| LBO Basics | Mechanics, return drivers | Especially for sponsors |
During an IB interview, you're asked to 'walk through how the three financial statements link.' What should you emphasize to show mastery?
Behavioral Preparation
Key Behavioral Questions
| Term | Definition | Note |
|---|---|---|
| Why IB? | Genuine, specific reasons | Not money/prestige |
| Why This Bank? | Research their culture, deals, groups | Be specific |
| Walk Me Through Your Resume | 2-3 min, highlight relevant experience | Chronological |
| Tell Me About Yourself | Concise pitch, end with why IB | 60-90 seconds |
| Teamwork/Leadership | STAR method examples | Have 3-4 ready |
You're asked 'Why investment banking?' in an interview. Which response is MOST likely to resonate with the interviewer?
Application Tips
Resume Best Practices
- One page only — no exceptions
- Quantify achievements — numbers and results
- Reverse chronological — most recent first
- Finance formatting — standard IB resume format
- No errors — have multiple people proofread
Compensation
Analyst Compensation (2024, US)
| Term | Definition | Note |
|---|---|---|
| Year 1 Base | $110-120K | Bulge bracket |
| Year 1 Bonus | $50-100K | Performance-based |
| Year 2 Base | $125-135K | Automatic increase |
| Year 2 Bonus | $80-130K | Higher performance |
| Total Comp (Year 2) | $200-250K+ | All-in |
Key Takeaways
Key Takeaway
- Recruiting is early — Start networking 1-2 years before target start
- Networking > Applications — 80% of jobs come through connections
- Technical prep is essential — Know accounting, valuation, M&A cold
- Have a genuine "Why IB" story — Not money or prestige
- School matters but isn't everything — Non-targets can break in with effort
Continue Your Prep
Build your IB knowledge with these essential guides:
- Investment Banking Interview Questions — Complete technical and behavioral prep
- How the 3 Financial Statements Link — Master the most common accounting question
- Accretion/Dilution Explained — Essential M&A concept
- Enterprise Value vs Equity Value — Core valuation question