Investment Banking Associate Pay and Career

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Күн бұрын

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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

Пікірлер: 95

@palladiumdaily2954 3 жыл бұрын

The fleece adds reliability to his information.

@xasanhh2455 2 жыл бұрын

Aaaa

@josephmcinley3540 3 жыл бұрын

Great stuff. Would love to get one of these on private equity analysts (hours, comp, responsibilities).

@theodorewai2864 3 жыл бұрын

Love your videos! They've been so helpful to me in trying to figure out my career path!

@PeakFrameworks 3 жыл бұрын

Thanks for your support Theodore!

@ZaldivarTwins 3 жыл бұрын

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 .

@syedazharuddin5914 3 жыл бұрын

Thanks for the video Matt. The information you give is very reliable and motivating. Appreciate that man 💯

@StefanoWeston 2 жыл бұрын

Great information. Thank you!

@willhoward7368 Жыл бұрын

Really appreciate the Canadian videos/information

@R6688dom 3 жыл бұрын

Love your videos!

@SacredAces 3 жыл бұрын

Man is repping Patagonia 💯

@princewembo8905 2 жыл бұрын

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.

@AnkitKumar-zc9yn 3 жыл бұрын

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.

@PeakFrameworks 3 жыл бұрын

We're releasing a course soon, but won't be available on KZfaq

@tvsegura 3 жыл бұрын

amazing!!! 🔥🔥🔥🔥🔝

@SaveThatMoney411 Жыл бұрын

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.

@mikhail3272 3 жыл бұрын

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

@PeakFrameworks 3 жыл бұрын

I don't know asset management quite as well, but can put it on my list, thanks!

@mikhail3272 3 жыл бұрын

Peak Frameworks thanks!

@thegoatpart2 3 жыл бұрын

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!

@PeakFrameworks 3 жыл бұрын

Excellent, USC does great for west coast placement

@thegoatpart2 2 жыл бұрын

@@PeakFrameworks I got in for business!

@burkesansiviero9622 3 жыл бұрын

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?

@PeakFrameworks 3 жыл бұрын

Pretty common, it's probably the most common feeder program into banking. Not a guarantee but pretty doable with hard work + time

@shubhradash3578 3 жыл бұрын

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

@lazyentrepreneur 2 жыл бұрын

from which iim are you ?

@user-un1zm4un9w 2 жыл бұрын

Why doesn't any video talk about tax cuts and the exact salary amount we get in hand.

@adrianbruno-mba 3 жыл бұрын

Just out of curiosity, is Houlihan Lokey not considered an Elite Boutique? I always thought so...

@PeakFrameworks 3 жыл бұрын

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.

@ashishc7900 3 жыл бұрын

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

@PeakFrameworks 3 жыл бұрын

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.

@samwhaddad 3 жыл бұрын

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

@PeakFrameworks 3 жыл бұрын

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

@aradhyagarg3739 3 жыл бұрын

Great video man! Can you do a similar one for hedge funds?

@PeakFrameworks 3 жыл бұрын

Yes, probably eventually but it's a much harder video to make!

@aradhyagarg3739 3 жыл бұрын

@@PeakFrameworks I understand, thanks!

@ZZ-lk3mn 3 жыл бұрын

How long after the superday should you reach back out if you haven't heard back?

@PeakFrameworks 3 жыл бұрын

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.

@souravkumarchowdhury698 3 жыл бұрын

Please make similar videos on Vice President and Managing Director roles as well. Thank you a lot for such informative videos.

@SquarePenix. 3 жыл бұрын

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!

@PeakFrameworks 3 жыл бұрын

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

@SquarePenix. 3 жыл бұрын

@@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.

@hendrikteeuwsen144 3 жыл бұрын

Thoughts on the Canadian pensions vs Big 6 investment banking out of undergrad?

@derekdiiorio4930 3 жыл бұрын

I would also like to know coming from a Canadian school.

@PeakFrameworks 3 жыл бұрын

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

@ZaldivarTwins 3 жыл бұрын

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

@PeakFrameworks 3 жыл бұрын

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.

@ZaldivarTwins 3 жыл бұрын

@@PeakFrameworks thanks for your help/reply man. Means a lot

@jyoung5256 3 жыл бұрын

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.

@yogeshbhagat9365 3 жыл бұрын

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 👍

@PeakFrameworks 3 жыл бұрын

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.

@jl.1732 3 жыл бұрын

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?

@PeakFrameworks 3 жыл бұрын

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.

@jl.1732 3 жыл бұрын

@@PeakFrameworks thanks Matt, appreciate it - interesting to see how the 2023 cycle plays out given the delay in 2022 oncycle.

@stevenshi6721 3 жыл бұрын

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.

@ZaldivarTwins 3 жыл бұрын

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

@shashwatprasad8650 3 жыл бұрын

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!

@PeakFrameworks 3 жыл бұрын

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.

@stevenshi6721 3 жыл бұрын

@@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?

@keithleyjarvis5663 3 жыл бұрын

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?

@PeakFrameworks 3 жыл бұрын

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.

@keithleyjarvis5663 3 жыл бұрын

@@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?

@derekdiiorio4930 3 жыл бұрын

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?

@PeakFrameworks 3 жыл бұрын

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.

@blakeandrews3613 2 жыл бұрын

Can you get become a buy side associate straight out of school with an MBA?

@PeakFrameworks 2 жыл бұрын

Yes you can. Generally you need prior IB or PE experience though.

@muneebmeher5005 2 жыл бұрын

Bro MBA or CFA to get into investment bank after chartered accountancy..? Having big four experience..?

@PeakFrameworks 2 жыл бұрын

I would go MBA at a good school. CFA doesn't matter very much in my opinion

@SPEARHEADGLOBAL 2 жыл бұрын

Working as a analyst for two years :( I hoping to get promoted soon

@chipznba 2 жыл бұрын

How much are you making with bonus as of now?

@SPEARHEADGLOBAL Жыл бұрын

@@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)

@dead5064 Жыл бұрын

@@SPEARHEADGLOBAL it is true private equity associate make 350k per year?

@georgegreen8836 2 жыл бұрын

Do you think it’s better to go straight into hedge funds or do two years of IB after an mba?

@PeakFrameworks 2 жыл бұрын

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.

@paulweiland5746 3 жыл бұрын

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...

@hahaitsu1 3 жыл бұрын

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.

@ZaldivarTwins 3 жыл бұрын

If you want more UK based info check out Afzal Hussein on KZfaq. Peak frameworks is the best imo but Afzal is dope too and until recently he only really gave numbers for UK IB

@hahaitsu1 3 жыл бұрын

@@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

@shashwatprasad8650 3 жыл бұрын

@@hahaitsu1 Touche, Afzal numbers on bonuses are bogus.

@PeakFrameworks 3 жыл бұрын

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.

@081praveenrajr4 3 жыл бұрын

Sir, while seeing Associate salary does VP makes 500000 ??

@PeakFrameworks 3 жыл бұрын

At top banks yes that should be very doable

@dejialonge 3 жыл бұрын

Whats your thought on pjt partners

@PeakFrameworks 3 жыл бұрын

Top tier firm, one of the best elite boutiques right now. Don't know much about their culture

@kousiksuryas7219 3 жыл бұрын

I am 27 yr old doctor about to do an MBA. Do IBs hire people like me?

@PeakFrameworks 3 жыл бұрын

Yes if you have an MBA from a good school, IB is very attainable

@jirensama1622 2 жыл бұрын

Holy shit man 200K-400K wtf

@evaneugenescott 3 жыл бұрын

All of the banks you mentioned have starting salaries at $150k for stub associates. This information is just wrong.

@PeakFrameworks 3 жыл бұрын

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.

@evaneugenescott 3 жыл бұрын

@@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.

@PeakFrameworks 3 жыл бұрын

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!