With the high intensity and long hours in investment banking, many bankers start to consider their next career move after a few years. There are many attractive opportunities post investment banking that offer better work-life balance, allow bankers to utilize their financial skills, and provide further career development. By understanding the pros and cons of different post investment banking jobs, bankers can find the right fit based on their career goals and interests.
Corporate development and strategic roles are common post investment banking jobs
Many investment bankers transition to corporate development or strategic roles at tech firms, Fortune 500 companies, or private equity-backed companies after a few years at an investment bank. These roles allow bankers to utilize their financial modeling and valuation skills while getting exposure to various industries. The hours tend to be better compared to banking but corporate development professionals still need to work on deals and projects with tight deadlines.
Private equity is a natural progression for investment bankers interested in the buy-side
Investment bankers often move to private equity firms after 2-3 years of experience. Private equity associates need to have strong financial modeling skills and the ability to evaluate companies across industries. The job involves conducting due diligence, building financial models, preparing investment memos, and portfolio management. The hours tend to be better than banking but still require long hours during active deal periods.
Investment analysts or portfolio managers at hedge funds or mutual funds are options for investment bankers looking to get buy-side experience
For investment bankers interested in investing and asset management, becoming an investment analyst or portfolio manager at a hedge fund, mutual fund, or family office can be a good career transition. These roles involve conducting equity research, building financial models, and making investment recommendations. The compensation at large established funds can be very lucrative but often requires proven investing success.
Investment bankers have the option to obtain an MBA or other advanced degrees before switching careers
Some investment bankers decide to leave banking temporarily to pursue an MBA or other graduate degrees in fields like computer science or data analytics before making a career change. An MBA opens up opportunities in consulting, private equity, venture capital, corporate strategy, and other business roles. Other advanced degrees can help bankers transition into tech or other industries.
Entrepreneurship allows investment bankers to build their own businesses and apply their knowledge
Many former investment bankers leverage their financial expertise and business relationships to start their own companies, join a startup, or become angel investors. Building a successful business requires strong execution skills, resilience, product and industry knowledge beyond just finance. Entrepreneurship offers investment bankers more control over their work but also requires them to take on more risk.
In summary, while some investment bankers remain in the industry for the long-term, many look to switch careers after a few years. Common post investment banking jobs include corporate development, private equity, investment management, entrepreneurship, and attending business school. With careful planning and preparation, investment bankers can utilize their financial skills to find fulfilling long-term career paths.