With the high pay and prestige associated with investment banking, it’s no wonder that many credit analysts aspire to make the switch. However, breaking into investment banking is challenging without proper preparation. This article will provide credit analysts with a roadmap of the skills and experience needed to land investment banking roles.
Enhance technical skills like financial modeling, valuation, and pitch books
Investment bankers spend a lot of time building complex financial models in Excel to evaluate transactions. Aspiring bankers should get proficient at modeling methods like DCF, LBO, M&A models and know how to build pitch books. Taking online courses, practicing case studies, and creating sample models are some ways credit analysts can sharpen their technical skills.
Obtain investment banking internships and network
Internship experience at investment banks provides crucial training and networking opportunities. Credit analysts should leverage their financial services background to get a foot in the door. Reach out to bankers on LinkedIn for informational interviews and insider tips. At internships, be a sponge and absorb as much as possible despite menial tasks.
Consider lateral moves within banking
Transitioning from credit analyst jobs internally may be easier than applying externally. Rotational programs allow analysts to experience different groups. Be a top performer and let managers know about your interest in investment banking. Internal transfers could provide the launch pad to land IB roles.
Obtain investment banking-specific certifications
Certain certifications like the CFA demonstrates commitment to investment banking and a solid grasp of valuation methods. The CFA exam covers key topics like corporate finance, financial reporting and analysis, and equity and fixed income investments. Obtaining the charter signals analytical and modeling expertise.
Enroll in investment banking focused Master’s programs
For career changers, Master’s programs targeting investment banking provide excellent preparation and access to campus recruiting. Programs teach technical skills through rigorous case studies and modeling courses. They also provide internship opportunities and powerful alumni networks.
With proper planning and persistence, credit analysts can successfully transition into investment banking roles. Gaining modeling expertise, securing internships, networking, obtaining relevant certifications and degrees are key steps to make it happen.