EDUCBA

EDUCBA

MENUMENU
  • Blog
  • Free Courses
  • All Courses
  • All in One Bundle
  • Login
Home Finance Finance Resources Investment Banking Careers Investment Banking Exit Opportunities

Investment Banking Exit Opportunities

Jesal Shethna
Article byJesal Shethna
Madhuri Thakur
Reviewed byMadhuri Thakur

Updated June 15, 2023

investment banking exit opportunities

What are Investment Banking Exit Opportunities?

After working in Investment Bank for a sufficient time, you may want to move on to new opportunities. Reasons may differ for each individual; sometimes, personal space takes a beating, and investment bankers often shift for better career opportunities. Exit opportunities include private equity firms, venture capital, hedge funds, and corporate works.

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

Why Look for Investment Banking Exit Opportunities?

The Working Hours or the Lifestyle
It is the most common reason for investment bankers looking for exit opportunities as Lifestyle in Investment Bank is very stringent. The hours you have to put in can be 16-18 hours, which limits your lifestyle.

The Pay Involved
Pay can sometimes be a deciding factor, as salaries in other streams may be higher than that of investment banks.

The kind of work
People may get tired of doing repetitive work and need to broaden their career opportunities and seek new career growth development.

Who can think of Investment Banking Associate Exit Opportunities?

The analyst who has gained solid experience of 2-3 years can go for exit opportunities. But the associates are expected to stay in banking for the long term.

Which Investment Banking Exit Opportunities can you Look for?

There are many options available, as said above.

  • Hedge Funds: This exit opportunity is better for those more inclined towards markets and interested in trading transactions.
  • Asset Management: Asset Management is about achieving a superior return on a client’s money. One can land up in asset management, where much Research and Development work is involved. Hedge Fund is also a kind of Asset Management.
  • Private Equity (PE): Private Equity works on similar background of banking. You can work on big projects with analysis, due diligence, valuations, etc.
  • Venture Capital (VC): Venture capital funds emerging businesses. So one can go for it if this area attracts them.
  • Corporate Development (Internal Corporate Finance): This is a relaxing option as you will get access to a better lifestyle here. Of course, the salary would be another aspect which you may have to compromise.
  • Start with New Businesses (Entrepreneurship): Some analysts even leave finance to set up their businesses. It can be a good choice for people with creative ideas.

What is the Work Timings in this Investment Banking Exit Opportunities?

In the case of Private Equity firms, the working hours will not differ much from that of Investment banks. For smaller firms, it may be less, but one cannot guarantee a schedule as they have to meet people, analyze the organization and do many other things. In a Hedge Fund, working hours are better than it concerns market hours. But sometimes traveling may get involved. And you have to be ready before the market opens up.

Note: Become an I-Banker
Learn the fundamental concepts of investment banking. Explore the concepts of financial modeling and valuation in detail. Exhibit skills to understand the process of M&A’s, IPOs, and equity research.

What are the Pay Scales After Exiting Investment Banking?

Private Equity Firms

  • The pay you will be making depends upon your experience, and sometimes it may be similar to that of banks. It may be even higher at more prominent firms than entry-level banking associates.
  • For the first-year analyst/associate, the salary can range from USD 50K-250K; for experienced, it may be up to USD 170K-350K.
  • Senior positions, like Vice Presidents and Managing Directors, depend upon the company’s performance.

Hedge Fund Pay

  • Hedge Funds pay you differently with a certain amount of base salary and bonus over it. Bonus is dependent upon the policy of the firm, performance, etc.
  • Approximately total compensation can be $300,000, much higher than analysts with 1-2 years of experience.

Pay in Venture Capital and Other Jobs
These options will provide you with a better lifestyle than the other two, but the pay you will make may be much lower than theirs. You may work in a senior position in corporate development, but the payment may be less than that of analysts in investment banks.

Ultimately, the Choice is yours. Every prospect has merits and demerits. You have to analyze your abilities and requirements, and based on that, you have to make a choice.

If you are new to Investment Banking, you should know more about the Basics of Investment Banking.

Recommended Articles

Here are some articles that will help you get more details about the investment banking exit opportunities, so go through the link.

  1. Interesting Things About Investment Banking in India
  2.  Merchant banking vs investment banking
  3. International Investment
  4. Improved Ways To Estimate Investment Banking Analyst Bonus
COST ACCOUNTING Course Bundle - 5 Courses in 1
16+ Hours of HD Videos
5 Courses
Verifiable Certificate of Completion
Lifetime Access
4.5
COMPANY VALUATION & FINANCIAL MODELING Course Bundle - 19 Courses in 1 | 9 Mock Tests
108+ Hours of HD Videos
19 Courses
9 Mock Tests & Quizzes
Verifiable Certificate of Completion
Lifetime Access
4.5
HEDGE FUNDS Course Bundle - 9 Courses in 1 | 3 Mock Tests
23+ Hours of HD Videos
9 Courses
3 Mock Tests & Quizzes
Verifiable Certificate of Completion
Lifetime Access
4.5
VENTURE CAPITAL Course Bundle - 2 Courses in 1 | 3 Mock Tests
7+ Hours of HD Videos
2 Courses
3 Mock Tests & Quizzes
Verifiable Certificate of Completion
Lifetime Access
4.5
Primary Sidebar
Popular Course in this category
INVESTMENT BANKING Course Bundle - 162 Courses in 1 | 58 Mock Tests | World's #1 Training
 568+ Hours of HD Videos
162 Courses
58 Mock Tests & Quizzes
  Verifiable Certificate of Completion
  Lifetime Access
4.9
Price

View Course
Footer
About Us
  • Blog
  • Who is EDUCBA?
  • Sign Up
  • Live Classes
  • Certificate from Top Institutions
  • Contact Us
  • Verifiable Certificate
  • Reviews
  • Terms and Conditions
  • Privacy Policy
  •  
Apps
  • iPhone & iPad
  • Android
Resources
  • Free Courses
  • Investment Banking Jobs Offer
  • Finance Formula
  • All Tutorials
Certification Courses
  • All Courses
  • Financial Analyst All in One Bundle
  • Investment Banking Training
  • Financial Modeling Course
  • Equity Research Course
  • Private Equity Training Course
  • Business Valuation Course
  • Mergers and Acquisitions Course

ISO 10004:2018 & ISO 9001:2015 Certified

© 2023 - EDUCBA. ALL RIGHTS RESERVED. THE CERTIFICATION NAMES ARE THE TRADEMARKS OF THEIR RESPECTIVE OWNERS.

Let’s Get Started

By signing up, you agree to our Terms of Use and Privacy Policy.

EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you

EDUCBA
Free Investment Banking Course

Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

By continuing above step, you agree to our Terms of Use and Privacy Policy.
*Please provide your correct email id. Login details for this Free course will be emailed to you

EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you
EDUCBA

*Please provide your correct email id. Login details for this Free course will be emailed to you
EDUCBA Login

Forgot Password?

By signing up, you agree to our Terms of Use and Privacy Policy.

This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy

Loading . . .
Quiz
Question:

Answer:

Quiz Result
Total QuestionsCorrect AnswersWrong AnswersPercentage

Explore 1000+ varieties of Mock tests View more