Investment Banking Associate Pay and Career
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- เผยแพร่เมื่อ 25 มิ.ย. 2024
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The investment banking associate position is the most typical entry point for MBAs and career switchers. Associates often make up to twice as much as analysts and are responsible for coordinating deals and ensuring a high quality work product. In this video, we'll go over the actual salary range of associates at the world's top investment banks.
0:00 - Salary and Bonus Data
5:32 - Paths to Investment Banking Associate
7:47 - The Job and Exit Opportunities
Peak Frameworks is a business career prep service started by Matt Ting and Patrick Fong, who have each spent several years working in investment banking and private equity in New York and Silicon Valley. Matt and Patrick met at Evercore, a top tier investment bank, and over the years have tutored and coached dozens of candidates to land their dream business job.
Matt Ting: / matthewting
Patrick Fong (HBS 2021): / patrick-fong-0b773041
#InvestmentBanking #PrivateEquity #Careers
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The fleece adds reliability to his information.
Aaaa
Great stuff. Would love to get one of these on private equity analysts (hours, comp, responsibilities).
Love your videos! They've been so helpful to me in trying to figure out my career path!
Thanks for your support Theodore!
Thanks for the video man. Going into IB this summer (undergrad intern) and the dilemma of whether or not to try to try for the buy side after graduating seems like a big choice so these videos help a lot .
Man is repping Patagonia 💯
Thanks for the video Matt. The information you give is very reliable and motivating. Appreciate that man 💯
Great information. Thank you!
Really appreciate the Canadian videos/information
Love your videos!
amazing!!! 🔥🔥🔥🔥🔝
Hi Matt, do you think you can make a video on asset management, how to break into the industry, career path, salary, different firms, and maybe comparison to IB. I’m from a Canadian school so if you could touch on Canadian firms too that would be awesome. Thanks
I don't know asset management quite as well, but can put it on my list, thanks!
Peak Frameworks thanks!
Hey, Ur videos are very useful and insightful. Can u please start a video series on fundamentals and skills required to break into IB Analyst and maybe teach them? U can even share study material also. It would be very helpful.
We're releasing a course soon, but won't be available on TH-cam
Hello, its me again. I know that you are in Canada. How is the investment banking in Canada compared to US with regards to size, pay and so forth. If you could make a video it would be so great but a reply would be awesome as well.
Thank you so much once again.
Hey Matt. Love your videos. I think I might get into USC by transferring from SDSU. I think that’s a target school, so lets go!
Excellent, USC does great for west coast placement
@@PeakFrameworks I got in for business!
Peak Frameworks is for private equity, but does it prepare someone for a role as an IB Associate as well? I am 41 years old and was told that I am too old for Wall Street Mastermind's course.
Great video man! Can you do a similar one for hedge funds?
Yes, probably eventually but it's a much harder video to make!
@@PeakFrameworks I understand, thanks!
Great video - I am currently in college and will work in transaction advisory at one of the accounting firms after school. How common is the move from transaction advisory to IB?
Pretty common, it's probably the most common feeder program into banking. Not a guarantee but pretty doable with hard work + time
Hey matt, I am an international student and come from a pretty reputed uni in the country, but I wanted to break into IB/Consultancy, but I also plan on going to grad school, which program(given i get into a target/semi-target school) should i opt for? Thanks
from which iim are you ?
im a non finance major ( not even business im a engineering major specifically EE ) can I get a finance internship if so how do you suggest I build up my resume for applying ! great videos btw , looking forward take your courses in the future
Engineering is one of the better ones to get into finance. I would start taking finance / business electives and joining finance clubs. Then reach out to people from your school who broke into finance with an engineering background.
Why doesn't any video talk about tax cuts and the exact salary amount we get in hand.
Thoughts on the Canadian pensions vs Big 6 investment banking out of undergrad?
I would also like to know coming from a Canadian school.
It's a bit of a personal preference, I don't think you can go wrong but they go down different paths. Pensions less flexible. If you're in a good IB group in Canada you can pretty easily switch to US firms after a year or so. I would personally do RBC > CPP investing role > BMO > doesn't really matter after.
Never worked in Toronto so maybe don't take this ranking as seriously, but this tracks to what I saw were the best exit opps / smartest folks from my school
Just out of curiosity, is Houlihan Lokey not considered an Elite Boutique? I always thought so...
They are probably technically an "elite boutique" but in my view, they get lumped more with Greenhill or Perella. That's a distinct tier below Evercore, Centerview, Moelis in my mind.
Houlihan is smaller and doesn't place quite as well as other firms. Great for restructuring though.
How long after the superday should you reach back out if you haven't heard back?
For IB on-cycle? If you haven't heard back within a few days, they've probably passed on you. I just send a quick thank you e-mail the following morning and leave it at that. Reaching out isn't going to move the needle on the current process, but it might help if another spot opens up.
Hi Matt, you’ve mentioned that for someone already out of undergrad, it’s better to try and network into a role that you can then leverage to an IB role without an MBA. Could you make a video exploring this in greater detail? I wanted to see if it’s also possible to do buyside recruiting this way. I feel like there’s a large demographic that this would be invaluable info for. Thanks!
Nah I think that's too hard for buyside, you need to be a top student at a top school to get buyside as an analyst. For IB it's possible because there's so much attrition
@@PeakFrameworks Thanks for the reply. I meant to say lateraling into IB and then using that experience to get a PE Associate role. I ask this because the chances of getting a Senior Associate PE role after MBA is nearly impossible without Pre MBA experience. Wanted to see a way to keep the most doors open.
Sir, PE firms and investment banks pays a lot in usa 🇺🇸 but how much top PE firms pays in canada 🇨🇦. btw your videos are very informative 👍
Onex, Altas and Brookfield are going to pay somewhat in line with US firms because they have to compete with US firms for talent. I think Onex pays PE street, so ~US$300k to associates. The rest of Canadian firms are tougher to pin down since there's not a good standard... I would estimate closer to ~CAD$200k for the remaining middle market Canadian firms as an associate. IB tends to pay more in Canada.
What are your general thoughts on MBA associates? Is it a good way to get into banking . How easy is it to break in though that route?
It's good for career switchers. It's a pretty easy to get into banking yes, but you still need to go to a top 20-30 MBA.
@@PeakFrameworks I'm going to Wharton I previously worked at a commercial bank and a few years at a small consulting firm trying to switch to IB any advice?
Working as a analyst for two years :( I hoping to get promoted soon
How much are you making with bonus as of now?
@@chipznba use to make 110k in base and about 40-80k in bonus!
Got promoted as Associate 1st year: i make around 138k in base and 50-100k(thats what i expect)
@@SPEARHEADGLOBAL it is true private equity associate make 350k per year?
Hey Matt, 2020 grad here who just lateraled into IB, so tech as a 2021 analyst with 2020 grad year - do you recommend PE oncycle for 2023?
If you weren't doing IB in 2020 I would probably wait a year. You likely won't have deal experience and it's just a better story if you have more stuff to talk about.
@@PeakFrameworks thanks Matt, appreciate it - interesting to see how the 2023 cycle plays out given the delay in 2022 oncycle.
Don’t you think associates are also supposed to help with the work? I personally think being a good/great associate is the hardest job in investment banking. Analysts can push off work, associates can’t or, as you said, the md will rip them apart
Yes good associates should help with the work, but their main priority is still generally going to be just making sure it's correct. I feel like the best associates I worked with would do more qualitative slides, e.g. industry analysis so I could crunch on the model
I’m currently working in Accounting - do you think it would be a easier to move laterally, or go for the MBA? Most of the bankers I have spoken with have encouraged the MBA path.
Not him but my advice would be that it depends where you work. For example if you are in Big 4 accounting it would be easier...you could even try moving into their corporate finance / IB-Esque arm as an internal lateral. Regardless, the job market is on fire rn so if you are going to try and lateral, now is the time
Hi Steve, I did audit for Big4 and I can tell you it's a nightmare to move in laterally. Unless you can move into advisory (was impossible for me due to politics), I'd highly recommend going for an MBA and collecting banking internships on the side so that you get some deal experience!
I think if you can move to financial advisory services (might need to switch big 4 firms) then avoid the MBA. If you can't make the move after a year or so, then MBA probably the only option.
@@PeakFrameworks Thanks for the advice! I also wanted to ask about your experience with visas as a Canadian? Currently in the US as an Accountant under the TN category. Do most Canadian bankers working in the US get the TN or the H1b?
Very insightful. I’m wondering how similar the compensation is for Canadian banks on Bay Street or regional BB offices in Toronto? Can you shed some light?
I believe BB offices are about the same at the junior level (analyst / associate) and Canadian salaries are pegged to US ones. Big 5 Canadian banks tend to be less though, Canadian bank bonuses are smaller. I would estimate mid ~$200s for an IB associate in Canada.
Why is the rate (1/5 - 1/8) of associates who make it to VP so low? I thought the hardest promotion was from VP to MD and that most career bankers get to VP and stay there
It probably depends a lot on group, but the attrition in the groups I saw was pretty rough. Lots of people tend to burn out before getting to VP or switch industries / go to firms with an easier promotion track.
@@PeakFrameworks thanks for your help/reply man. Means a lot
A lot of associates I know get picked off by F500s in corporate development & corporate strategy where the hours are half and the pay is still six figures. Others pivot to PE, CRE, or startups. Exit opps are (generally) the same for associates, in many cases even better. The firm I’m with does real estate private equity and we prefer to hire associates for incoming roles over analysts.
Do you think it’s better to go straight into hedge funds or do two years of IB after an mba?
After MBA I'd just go with what you really want to do. It's hard-ish to move again after your MBA, so just do hedge funds if you think you want that long term.
Can you get become a buy side associate straight out of school with an MBA?
Yes you can. Generally you need prior IB or PE experience though.
Whats your thought on pjt partners
Top tier firm, one of the best elite boutiques right now. Don't know much about their culture
Please make similar videos on Vice President and Managing Director roles as well. Thank you a lot for such informative videos.
Bro MBA or CFA to get into investment bank after chartered accountancy..?
Having big four experience..?
I would go MBA at a good school. CFA doesn't matter very much in my opinion
Do the salaries in UK (London) vary a lot to the salaries in the US? I heard they are a lot lower in some cases...
They used to be comparable when cable was trading in the 1.6-2 range. But after Brexit, and along with the capital markets growth in the states, that the European region hasn't really seen, US is generally higher by a decent margin (+20-50% after tax take home at the junior level). And generally senior level quite a bit higher as well as Europe lacks the mega deals seen in the US.
If you want more UK based info check out Afzal Hussein on TH-cam. Peak frameworks is the best imo but Afzal is dope too and until recently he only really gave numbers for UK IB
@@ZaldivarTwins that guy just repeats info from Google that you can find. He loves mentioning Goldman but he was in asset management. Not IB or global markets.
Matt (and me as well) have actually been in the industry
@@hahaitsu1 Touche, Afzal numbers on bonuses are bogus.
I never worked in the UK, but yes I believe the salaries are overall quite a bit lower, especially for IB. Seems like potentially only 60-70% of what you make in US. I think PE is a bit more even at the junior level. Not 100% sure why.
Sir, while seeing Associate salary does VP makes 500000 ??
At top banks yes that should be very doable
I am 27 yr old doctor about to do an MBA. Do IBs hire people like me?
Yes if you have an MBA from a good school, IB is very attainable
All of the banks you mentioned have starting salaries at $150k for stub associates. This information is just wrong.
Uh, what are you talking about? I center the starting salary at $150k in the video for a first year associate. This base salary data comes from H1Bdata.info, which comes from unalterable visa data in the US. The bonus ranges seem very reasonable to me based on my work experience and channel checks and also line up with what WSO and BIWS have on their websites. If you have contrary data, then you should present it.
@@PeakFrameworks At 1:28, you say $100-120k as your base for a first year associate. You are including associate salaries that are for non-IB roles. The base salaries are extremely standardized and very very few pay below $150. The median is probably higher when you include some of the EBs and MMs that skew higher.
I am not sure what you are trying to argue here. Do you believe that there are any first IB associates at Goldman making $100k base or $95k base at CS? Maybe 20 years ago, but not in 2021.
Street for associate salaries is: 150/175/200 with a few EBs/MMs skewing higher and I think a couple maybe Canadian shops are at 125 for first year, but that isn’t street.
Ah, I see what you are saying. Yes, I decided to be more conservative initially when cultivating data from the database in the first step.
The more fulsome salary projections at 2:58 that also project bonus shows $150 / $175 / $200 like you're saying. That's what I was anchoring off when responding to you initially, sorry!
Holy shit man 200K-400K wtf
What’s your Instagram
Haha it's @matt.ting, but I don't post any finance content on it!
@@PeakFrameworks I have a TikTok based on finance we could collab 🤝
Software engineers get paid more in Silicon Valley, you use your brain and have reasonable hours