For those looking for a career in investment banking, it helps to know where investment banks are looking for employees. So where do investment banks recruit? As it happens, the search field for the major investment banks such as Goldman Sachs Group Inc. (GS) is relatively narrow.
Many university graduates are drawn from a list of "target schools" where investment banks concentrate most of their recruiting efforts in terms of regularly showing up on campus and offering multiple interviews and summer internship opportunities to undergrads.
Attending one of the top target schools makes getting an interview with multiple investment banks a fairly easy process, while students at other, non-target schools may find it difficult to line up even one or two interviews, and have to put forth considerably more effort to land those interviews.
Key Takeaways
- Breaking into investment banking is easier done if you go to one of the top “feeder” schools where the major investment banks recruit.
- Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor.
- Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
- Students looking to get a permanent job at an investment bank should consider trying to get a 12-week internship that many of these investment banks offer.
Investment Banking Profession
It is generally well known that investment banking is one of the hardest career fields to break into. Investment banking involves, along with exciting merger and acquisition (M&A) deals, exceptionally high salaries and bonuses, which makes an investment banking career attractive and one where there is a lot of competition for the available entry slots each year.
Investment banking is a relatively small niche within the overall financial services sector. There are simply not that many jobs available in the field as opposed to, for example, the field of accounting or retail banking. Attending a school that is an established source for employees of investment banks is, therefore, a key advantage.
Top Schools
University of Pennsylvania
The University of Pennsylvania, home to the famed Wharton School of Business, is one of the top feeder schools for the investment banking industry. However, the recruiting statistics for the overall number one university reveal an important point about investment bank recruiting, which is that each investment bank has its own individual list of preferred schools.
The University of Pennsylvania is one of the top schools for Goldman Sachs, Citigroup (C), and Credit Suisse (CS).
New York University
New York University (NYU) is right with the University of Pennsylvania in terms of where investment banks most frequently recruit new employees. NYU is a top school for many investment banks, including being a top school for new hires for Barclays (BCS), JPMorgan Chase (JPM), and Credit Suisse.
The University of Michigan at Ann Arbor
The University of Michigan at Ann Arbor is another top feeder school. The University of Michigan is a top school for boutique investment banking firm JPMorgan Chase and Goldman Sachs.
Other Top Schools
The Ivy League dominates many other spots for schools that investment banks target, including:
- Harvard
- Yale
- Cornell
- Princeton
- Columbia
Other notable schools include the University of Michigan, Georgetown University, the University of Notre Dame, and the University of Chicago.
For individuals aiming to get on with a certain bank, it is important to keep in mind each bank has its own preferred recruiting sources. For example, Bank of America (BAC) tends to grant more jobs to Cornell and Vanderbilt Universities versus the University of Penn. or NYU.
The Importance of Internships
Nearly all the major investment banks offer summer internship analyst programs that last approximately 12 weeks. Students who can land one of these internships not only gain valuable experience but also have the opportunity to develop networking relationships at the bank that can give them a substantial advantage when it comes to final hiring decisions.
FAQs
Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor. Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
Where do investment banks recruit? ›
The three overall best schools for investment banking placement are: University of Pennsylvania, Georgetown University, and Harvard University. UPenn is clearly the best finance school in the entire world.
What year is investment banking recruiting? ›
Undergrad investment banking internships
Nowadays, undergrads interview for junior summer internships during the Spring of their sophom*ore year. If investment banks recruit on your campus, this may mean that they require applications during fall.
What is the hardest investment bank to get into? ›
Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.
Who are the top 3 employers in investment banking? ›
Global Investment Banking Companies in India
| Investment Bank Name | Key Services | Headquarters |
|---|
| Goldman Sachs | M&A, Capital Markets, Asset Management | New York, U.S.A |
| Morgan Stanley | M&A, Capital Markets, Wealth Management | New York, U.S.A |
| Bank of America Merrill Lynch | M&A, Capital Markets, Wealth Management | North Carolina, U.S.A |
7 more rowsJan 2, 2024
In recent years, the GPA cutoffs for investment banking have been trending higher. Currently, a GPA around 3.7 is often preferred for interviews at large banks, while elite boutiques and bulge bracket firms like Goldman Sachs and Morgan Stanley may look for a GPA of 3.8 or higher.
Where do top investment banks recruit from? ›
Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor. Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
How old are most investment bankers? ›
The Investment Banking Career Path
| Position Title | Typical Age Range | Base Salary (USD) |
|---|
| Associate | 25-35 | $175-$225K |
| Vice President (VP) | 28-40 | $250-$300K |
| Director / Senior Vice President (SVP) | 32-45 | $300-$350K |
| Managing Director (MD) | 35-50 | $400-$600K |
1 more rowAge plays a huge factor in the decision-making process. Wall Street is an up-and-out industry. Unless the goal is senior management, most people in finance are out of there by age 50. That's not at just the biggest investment banks, either.
How hard is it to get a job in investment banking? ›
Investment banking is extremely competitive with way more applicants than available positions each year. You will often be up against students from Ivy League universities, with a high GPAs and multiple internships under their belts.
1. Goldman Sachs is the highest paying bank overall - $398k in combined salaries and bonuses, on average. Goldman Sachs, which paid average salaries of $200k and average bonuses of $199k for 2023, was the highest paying bank we polled.
What is the most elite investment bank? ›
The Top 10 Most Prestigious Investment Banks for 2024:
- Goldman Sachs & Co.
- Morgan Stanley.
- J.P. Morgan.
- Centerview Partners.
- Evercore.
- Lazard.
- PJT Partners.
- Moelis & Company.
Bank tiers indicate an institution's financial health. For example, a Tier 1 bank can immediately absorb losses without halting banking operations. A Tier 2 bank or institution with supplementary capital has less secure and harder to liquidate assets, which is less stable during a crisis.
What pays more than investment banking? ›
On an hourly basis, most sales & trading professionals earned a lot more than bankers in 2023. Credit sales & trading professionals earned $147 per hour on average, for instance. Commodities and macro professionals earned $170 and $180 per hour, respectively.
What is the most prestigious bank to work for? ›
Goldman Sachs & Co.
Another US institution that's a global leader in financial services, Vault ranks Goldman Sachs & Co. as the most prestigious bank to work for. Goldman works with clients ranging from individuals to governments and is a leader in investment banking, securities, and investment management services.
Who are the Big 4 investment bankers? ›
In the U.S., the top investment banking companies include the Big Four Banks — JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo.
Where do banks recruit from? ›
Investment banks tend to recruit from a variety of top universities, but some of the most common recruiting schools include Ivy League universities such as Harvard, Princeton, and Yale, as well as other prestigious universities like Stanford, MIT, and the University of Chicago.
How do I actually get into investment banking? ›
Becoming an investment banker requires several years of higher education in addition to licensure. It also requires strong mathematical and analytical capabilities, which may be challenging for some people. In addition to a bachelor's degree, investment bankers may need a master's in finance or an M.B.A.
Where is the best city to work as an investment banker? ›
New York, New York, USA
New York City is typically considered the finance capital of the world. Many of the largest investment banks, including Goldman Sachs,15 Morgan Stanley,16 and Merrill Lynch,17 are headquartered in New York City. So too are several large banks, including Citigroup and JPMorgan Chase.
Where did most Goldman Sachs employees go to college? ›
The second top employer is the bank with the highest share of employees from that undergraduate school. For example, Penn's first top employer is Goldman Sachs, because more Penn (undergraduate) alumni work at Goldman Sachs than at any of the other twelve banking firms.
