What do Investment Banking Associates do?

Back when I was a slave to Affinity.co I was charged with researching and building our case for Investment Banking. I built the GTM we used to launch our Investment Banking product and campaigns.

Outside of one very helpful product managers, there was not much information available around the persona of Associates. In fact, a Google search was more likely to return information on Analysts.

There has always been a shortage of information around the Associate persona in the Investment Banking world, I wonder why.

Well now that I am an expert on such things I can answer my own questions. Joy!

Typically, it is because more senior bankers try to stay in the field for a long time. And if they do end up making an exit, they likely end up in a corporate finance job at some normal base company. And writing a tell-all book about the juicy details is not really an option.

That’s why I come in. Scott Guttenberger at your service! Here is some useful information for you interested future investment bankers and marketers who are trying to pin down the persona of an Investment Banking Associate. We will cover the full gamut; the basics, job description and exit opportunities. Strap in folks.

Job Description of Investment Banking Associate

Associates sit one level up from Analysts in the Investment Banking hierarchy. To learn more about Analysts, jump over to my article, What do Investment Banking Analysts do?

Many Analysts are usually recruited from top undergrad universities, Associates are promoted from within the ranks or come in direct from the top MBA programs.

Similar to Analysts, Associates will focus on

• Financial models and valuations in excel spreadsheets
• PowerPoint pitch books and presentations
• CIM or Confidential Information Memoranda
• Supportive marketing documents for clients
• Fielding questions from clients and internal team members
• Office politics (How lucky!)

Where are the differences? This sounds just like my amazing article on Analysts…

Well, there are significant similarities AND differences.

Associate Differences from Analysts

• Much less action: More error checking, less error making. — As an Associate you will spend a lot of your time checking the work of your fellow Analysts. Depends on how you feel about the work load as an Analyst. This could be great news for you and is bound to showcase what you learned in school or as an Analyst.
• More project management. — You will receive instruction from on high and relay those charges to Analysts. When it comes to Deals you will have more active responsibility uch as follow-ups and making sure documents were sent and that each step was completed in the process required by your firm and local regulation.
• Much more client interaction. — Enjoy meetings? Great here is your opportunity to be in many more of them! The good news is you will get exposure to client pitches at this level. And when those clients have questions they will go to you for the details. Again, everything you learned as an Analyst will come in handy for these types of interactions.
• More cowbell: More powerpoint, less excel. — Im not sure how to classify this. I mean I love powerpoint and I loath excel spreadsheet. At this level you are in powerpoint al the time and not so much in excel. You will also be the go-to editor for powerpoint presentation. For you excel buffs, you will still have some work to do in your favorite spreadsheet, but in truth, you will spend more time in powerpoint. Hope you like transitions!

Of course all of this varies from boutique investment firms to bulge bracket investment banks. The roles will change based on size and seniority breakdown.

Let’s break this down further. If you end up at a regional boutique bank where your team is made up of you and a single managing director…you are the Associate AND the Analyst.

However, if you are in your third year at a bulge bracket investment bank and the team is structured with you, an Analyst, a VP and possibly an SVP and a Managing Director, you may fill the project manager role.

Don’t be discouraged, the bank knows you got the skills to pay the bills; you are being assessed to see how you manage teams and clients. Which means you are being groomed for a VP position.

Working Hours of an Associate

So if you did check out my article on Investment Banking Analysts, you understand that the hours are long. There is a slight improvement at the Associate level, but not much. Still any gain is earned.

As an Associate you will typically work 60–80 hours a week compared to the 80+ hours some of your Analysts work.

You are still on call 24/7 with the expectation that you must answer urgent emails and phone calls but these urgent requests will typically go to your Analysts first.

At the Associate level you still have little room for a personal life and hobbies for a while.

Why would anyone do this to themselves?

Investment Banks what to hire Associates because they are looking for long-term employees who will move up the ladder. In exchange for your time and life, they do pay reletivly well and you will be groomed for senior roles at the firm.

The reason why YOU would want to be an Associate at an Investment Bank is for the exit options towards Private Equity and hedge funds. But that goes against what the banks want…but who cares right, you got a P. Diddy esc Shrimp Boat to buy!

Other than the free shrimp, you should choose this path is you want to be in Investment Banking long term and because you are interested in climbing the ladder to VP, SVP and Managing Director.

An average day of Investment Banking Associate.

Just like we did with with Analysts, let’s take a detailed look at the day of an Associate. If you want to refresh you knowledge, jump over to our article, What do Investment Banking Analysts do?

8 AM — Arrive at the office bright an early. Typically your first meeting is with a VP to discuss M&A pitches and answer some questions and concerns he or she may have about the functionality of Analysts that have been hired.

After this you will probably want to review some of the status reports your Analysts have drafted on buyers for your active M&A deals. This is where your editor hat gets some milage. You will probably see some errors and have to ask your team to update the documents and send it out.

10 AM — Your Managing Director wants a morning meeting to speak about potential sales and companies in your current portfolio.

Your test here is to look smart, act quick, take notes and throw some answers out about the market research your Analysts have done. Be sure you are breifed by your Analysts, you will asl be expected to answer some questions about potential buyers.

12 AM — Desk lunch! This is also a good time to get some due-diligence tasks tackled. Taking some quick calls, monitoring Analysts sessions and get ready for the second half of your day.

1 PM — After lunch you are probably going to start drafting a pitch book. Any details you discussed with your VP earlier in the morning will need to make it into this M&A pitch book. Did you take notes?

Your job is to outline the structure, write some basic copy about what the slides are and then you toss it over the fence to the new Analysts.

3 PM — Let’s assume your Managing Director is out an about meeting with clients. Shakin’ babies and kissing hands. You probably get a frantic call, he or she needs hundreds of materials briefed for a meeting they have in an hour. Read the email, amend with your directions and put an Analyst on the task.

Around the same time you are likely getting calls from clients who has questions around a presentation they recently were pitched. There is probably some disappointment, now is your time to shine! Listen with intent and make the changes to the pitch.

5:30 PM — Let’s review a CIM with an Analyst and explain all the changes that need to be done before tomorrow morning.

6:30 PM — One or more of the Managing Directors want to have an in-person, impromptu meeting with you.

They have some input on the newest Analysts and they want your impression. At this point you are in year two as an Associate and you have some pull.

Try not to sabatoge anyone. Remember you were a new Analyst at one point. Strike a balance and give useful commentary.

7:20 PM — You are thinking you might leave a little early today. Haha, don’t pass go. You are not done yet.

7:30 PM — Changes to a pitch deck come in. Most of this work will go to your Analysts but you will need to stick around to double check the work.

10:30 PM — You review the work, make some minor changes and then you leave for the day. Its about 11pm. Long day but now it is time to go home.

12 to 14 hour days are the norm. If you have multiple deals running it could get messy and you might stay later. But most of the time bad days for an Associate are because of office politics.

If you are wondering if this job is right for you, ask yourself these two questions.

1. If you are currently an Analyst, do you like your work and are you a rockstar? If you are doing well, stick around.
2. Are you ready for 3 more years of having no social life and no hobby?

If you want to make the move be tactful read the fine print and navigate the politics. If not make your move to VC or corporate development roles.

Scott Guttenberger