Investment Banking FAQs

• Large global banks hire for entry roles (i.e., Analysts) from top B-schools in India and the recruiting process is very structured with little flexibility to entertain talent at the undergraduate level or take lateral Non-MBAs.
• To work at large global banks, one has to identify from their campus of choice and be a top candidate there as each bank generally hires one candidate from each campus for full-time roles and at best 2-3 candidates in that year’s cohort from all campuses that they visit. It has historically been the top 3 campuses in India (IIM A/B/C)

Many funds do not require a classic onshore leverage model since it is not possible to execute the same in India. However, most funds would generally require you to model a HoldCo leverage and in some cases a classic LBO model could also be specified.

• Mid-market firms do not hire people as frequently as some of the BB banks and consequently, most shops do not visit B-school campuses. Further mid market banks also focus more on hiring laterally from the market.
• Hiring in IB typically follows attrition in the team and therefore tends to be generally more unstructured as compared to some other career paths like consulting, where firms visit multiple campuses in India every year and hire decent number of students (large firms can hire 50-75 consultants) in every cohort.

• IB Analyst and Associates at top firms (Post-MBA)
• Consultants at strategy firms (Post-MBA)
• Current Analyst / Associates at other buy side funds who are on Track roles
• MBAs with Pre-MBA PE experience in India

Since each of the above pools are mature in size, the number of qualified applicants are very high as compared to the demand for new roles

IB firms generally do not come to campuses formally. However, many mid-market IB firms are open to hiring freshers with a strong interest or academic background in finance. This pool generally includes top commerce graduates, CAs and engineers from top colleges.

Networking and reaching out to people is important in this industry, especially if you are not at a top b-school campus where firms go to hire. IB internships are significant for both top quartile b-school students and top undergraduate students. Undergraduate students should focus on securing internships in the penultimate and final year of college before graduating.

• Top global firms generally only hire from the top 2-3 b-schools and fresh MBAs join them as Analysts. These firms in India would include JPM, Morgan Stanley, GS, Credit Suisse and Barclays
• Mid-market firms and global boutiques would hire undergraduates and CAs as Analysts and top quartile b-school graduates as Associates. These firms in India would include Avendus, Spark Capital, O3 Capital, Kotak IB, JM Financial, Arpwood, Edelweiss, Ambit, Investec, DC Advisory etc.
• Some firms, like Avendus and Kotak, also visit top b-school campuses regularly. Most firms that do not visit campuses regularly rely on hiring lateral talent either from middle office roles or from other corporate roles with work experience of two to three years.
• For non-MBA candidates, most IB firms prefer to hire laterals (usually from smaller boutiques or the middle office of BB firms). Some firms are also open to hiring fresh undergrads as well provided candidates have a strong academic background in finance backed by internships or strong referrals.

Some firms like Rothschild hire under-graduates (engineers or commerce grads) as Junior Analyst. It is generally a 2-3 year program following which the Analysts are expected to go to b-school. However, most mid-market firms put strong candidates on a track role after 2-3 years and don’t necessarily ask them to complete an MBA.

• Almost all the Big4s have an IB practice. They generally focus on PE syndication and mid-corporate M&A, if any. They rely on top quartile B-schools for hiring talent and are generally open to taking on lateral hires (irrespective of MBA) with relevant experience.
• Since these teams are relatively small compared to other practices like Audit or Tax, it is challenging to make a lateral move to the IB team from other service lines of a Big4 even with strong academic background.
• EY in India is particularly strong in running growth stage PE deals.

IB firms are generally open to hiring lateral talent from industries related to accounting and finance, provided you are a good fit. People working in roles such as Due Diligence, Consulting, Equity Research, Finance Leadership roles of large corporates have been known to move into IB. However, it is important to ensure you are still in the early stages of your career and have not spent more than 2-2.5 years after graduation.

The mix would be different for different firms. It is best to check with existing team members to understand the split specifically for your coverage team. Even within the same firm, the older and more established coverage teams would have more deal work as compared to a new sector group, which has just been set up as promoters prefer established teams with closed deals when giving mandates. As part of interviewing with the firm, one should try and get colour on this aspect from senior team members as well.