Target investment banking schools refer to the top universities that leading investment banks actively recruit analysts from. Getting into a target school greatly increases one’s chances of landing an investment banking job at firms like Goldman Sachs, JPMorgan, Morgan Stanley etc. The most renowned target schools include LSE, Oxford, Cambridge in the UK and Ivy Leagues like Columbia, UPenn, Yale, Harvard in the US. Students at these schools not only enjoy exclusive resume submission channels and ample interview opportunities, but also gain privileged access to networking events, alumni connections and insider referrals. Though non-target students face more obstacles, with the right approaches, they can still break into investment banking.
LSE and Columbia produce the highest ratio of investment banking front office professionals
According to efinancialcareers’ research based on 60,000+ resumes, LSE and Columbia boast the strongest track record of funneling graduates into lucrative front office investment banking positions like M&A, sales and trading. Their alumni dominate the M&A landscape. Other top feeders are UPenn, NYU, Oxford and Cambridge which send 7-10% of graduates to front office. Though not topping the list, elite universities like Harvard and MIT enjoy immense investment bank recognition too as many of their talented graduates simply choose other appealing careers.
The Big Four accounting firms cast a wider target school net than investment banks
The Big Four of PwC, Deloitte, EY and KPMG send huge recruitment teams to colleges every year. According to their listed target schools, they court a more diverse mix of prestigious universities beyond just the global elites sought by investment banks. Many state schools like Penn State, University of Illinois feature among their top talent pipelines. The prominence of alumni networks determines target school status and students’ chances of getting referrals or insider tips. So networking Immensely helps students from semi-targets or less prestigious universities.
MBB management consulting firms focus more on credentials than backgrounds
Unlike investment banks which disproportionately hire Finance and Economics majors, consulting prizes diverse academic and professional backgrounds spanning technology, sciences, humanities as they tackle multifaceted business problems. But the fiercely competitive undergraduate hiring process still favors target school students for their access to privileged interview activities. Yet with tenacity and tactical approaches, non-target achievers can also compellingly demonstrate their potential.
Target status acts more as a screening device than an absolute label
While target schools enjoy entrenched advantages of alumni connections, geography, brand prestige that ease recruiting, adroit non-target students can negate the divide through networking, referrals, interview preparations and optimally showcasing their experiences. With holistic appraisals gaining prominence, both target and non-target applicants are increasingly assessed based on their thinking abilities, motivations beyond mere profiles or brands. Ultimately drive and competence determine careers, not labels.
In investment banking and related professional services recruiting, target school status offers unrivaled access to activities and connections. But non-targets can tactfully compensate through dedicated networking, referrals and accentuating their diverse competencies, credentials and motivations. Assessment mechanisms are evolving more holistic too. So target status need not dictate careers.