Investment banking and asset management sector profile

If you’ve got a keen eye for detail and thrive under pressure, you may enjoy a career in investment banking and asset management. Whether you want to work on big deals with corporate clients or make live trades on the stock exchange, there are many exciting jobs in the sector.

Contents

• Different areas of investment banking and asset management
• Typical roles in investment banking and asset management
• Skills and qualifications
• Salaries
• Key employers
• The application process
• Investment banking and asset management sector graduate jobs and schemes

While all asset management and investment banking careers involve dealing with wealth in some way, each area within the industry has a distinct purpose – and different career paths.

We’ve summarised the main specialisms to help you know which niche to focus on:

What is investment banking? In short, investment banking is the financial service that helps businesses, organisations and governments raise capital (ie. funds). It can include mergers and acquisitions (M&As).

Some investment bankers will work for an investment banking division (IBD). Banks are made up of many divisions, one of which is the IBD. The IBD is the part of a bank that supports complex financial transactions, including acting as an intermediary between investors and companies.

Others will work for investment banks. So, what is an investment bank? Essentially, an investment bank is a bank that only offers investment services. In comparison, IBDs are part of banks that offer more services (ie. current accounts, mortgages).

As part of their role, investment bankers research companies that are being bought or sold. As an investment banker, you’d conduct every aspect of the transaction – including evaluating company performance (and estimating future worth) and pitching ideas for investments.

Investment banks and IBDs sometimes preside over multi-billion pound transactions and make money by taking a percentage cut of the final sale price.

Private equity firms are investment management companies that raise funds for already-established firms. Private equity firms seek investment from institutions like insurance companies to buy other organisations, improve their performance and then sell them at a profit for themselves and their investors.

Most people who work for a private equity firm already have investment banking experience. However, some merchant banks (which offer a wider range of services, including private equity investments) offer internships to students and recent grads specifically interested in private equity. So, if you know that private equity is the route for you, look out for similar opportunities.

Asset and investment management involves increasing the size of a client’s investment portfolio by executing trades and diversifying it (ie. spreading money across several types of assets) to offset risk.

As an asset manager, your job is to analyse financial markets and invest your clients’ funds based on what you think will deliver the best returns. Clients include pension funds, institutions and high-net-worth (HNW) individuals.

Curious about asset management? Learn more about what asset management firms do.

Trading is a division within an investment bank.

If you work as a trader, you research trends in financial markets and buy or sell financial products on behalf of the bank’s clients. Your aim is to help clients return a profit.

Sometimes, the division is called sales and trading. However, as a trader buys or sells depending on which one will benefit their client, the buying aspect is usually part of the same department.

The price of financial products is constantly fluctuating, so trading requires patience, a passion for financial markets and the ability to manage risk.

There are various types of jobs within the sector.

Here are some of the main asset management and investment banking careers to explore:

Excited by growing funds? A career as an investment banker might be for you.

Typically, most investment bankers start out at the analyst level and build their way up. However, if you enter the specialism with prior experience in accounting or consultancy, you could skip to becoming an associate.

Junior investment bankers divide their time between analysing the performance of markets and companies and advising clients of targets for investment. More senior bankers tend to take a lead role in negotiating deals that involve the buying and selling of large companies (ie. mergers and acquisitions).

As you progress in your career, you’ll take on more client-facing responsibilities, build networks with company leaders and manage teams of junior employees. Due to the competitive nature of investment banking (and the numerical and client-facing skills investment bankers develop in the role), investment banking analysts are highly prized in other industries. Private equity firms recruit a lot of former investment bankers. Many investment bankers also make desirable consultants.

Traders work with salespeople to buy and sell financial products (ie. stocks, bonds, currencies and commodities) for a profit on behalf of a bank’s customers. While salespeople advise their clients when to buy and sell, traders analyse market trends in real time and are the ones who execute the trades.

If you’re passionate about financial markets and find it exciting to take responsibility for risky decisions, it’s worth considering if you’d enjoy being a trader.

As a strategist, you research and write reports on the wider economic events (ie. elections, large corporate deals and announcements from central banks) that may impact your clients’ trading and investment strategies. It’s a great role if you’re as interested in the political forces behind the numbers as the numbers themselves.

Fancy a career in the investment banking and asset management sector?

Here are some of the skills and qualifications you’ll need to succeed:

• Financial modelling. When valuing a company, you may need to build a financial model that forecasts its future performance (typically in software like Microsoft Excel). Never done financial modelling before? Don’t fret. There are several accredited qualifications available that’ll teach you the required methodologies.
• Mathematics. While a good grasp of basic algebra is enough for most non-technical roles, a strong mathematical background will help you stand out during the application process. It’ll also make it easier to perform the quick mental calculations you’ll do in the sector.

• Networking. Most roles in investment banking and asset management are client-facing, so interpersonal communication is a desirable skill in the industry. You can learn more about how to build professional relationships in our ultimate guide to networking.
• Presentation. Investment bankers and asset managers regularly make presentations to clients and internal stakeholders to persuade them to invest in a company or product. Often, presentations will be in front of large groups of senior colleagues and corporate managers so it’s worth brushing up on your presentation skills to feel more confident.
• Resilience. Many roles in the investment banking and asset management sector involve long work hours – particularly during busy periods. The ability to stay motivated under pressure is essential.
• Analytical skills. While the maths involved in most roles is relatively basic, you may find yourself working with large data sets when building financial models or analysing market trends. You’ll also come across figures when reading research reports and articles. Therefore, you need to be comfortable with qualitative and quantitative analysis to thrive in the sector.

For most roles in investment banking and asset management, you’ll need an undergraduate degree. However, you don’t need to have studied a particular subject. While business and finance grads will be more familiar with some of the concepts involved in the day-to-day job, you can get into investment banking without a finance-based degree. You’ll need to show an interest in financial markets and some basic numerical skills, but you don’t need to have studied anything similar.

There are many well-respected certifications that will help you hone your technical skills and learn about the day-to-day work you’ll do as an investment banker or asset manager. The most highly regarded is the Chartered Financial Analyst (CFA) program, which takes several years to complete. A popular alternative is the Financial Modelling and Valuation Analyst (FMVA) certificate by the Chartered Financial Institute (CFI). Both teach financial modelling skills, which are vital for valuing companies.

For those new to asset management, there’s also the Institute of Asset Management (IAM) certificate, which teaches risk assessment, strategy and financial planning.

You can enrol in a course independently. Alternatively, your employer may pay for you to take one. Find out more about professional certifications for investment banking and asset management.

The investment banking and asset management sector is generally well-paid. However, there’s still a disparity between salaries. A junior trader won’t earn the same as a senior investment banker.

Salaries in investment banking and asset management will vary dramatically depending on your role, the firm you work for, your experience, your location and your seniority. Larger firms and client-facing roles typically pay more than smaller firms or back-office positions.

It’s also worth remembering that end-of-year bonuses aren’t considered within salary bands. Sometimes, bonuses in the sector can equal (or even exceed) your salary. There are many bonus schemes designed to incentivise top performers, so you’ll earn more if you hit ambitious targets.

Compensation for asset managers also depends on the total number of assets they’ve got under management (AUM), as well as their role and firm. You’re incentivised to grow your client’s portfolio, as it’ll lead to you receiving a higher fee.

Although there are so many factors that will affect how much you earn, here’s a rough guide for average salaries in the sector’s key areas:

Typically, you’ll begin your investment banking career as an entry-level investment analyst. Investment analysts tend to earn between £23,000 (as a starter salary) and £65,000 (once experienced). While many analysts move on to become investment bankers, extremely experienced investment analysts still command high salaries with some senior analysts earning over £110,000.

If you choose to become a corporate investment banker (advising companies, institutions and governments), you can expect to have a salary of around £30,000 to £40,000 in your early days (likely higher in a larger bank). Once you’ve got three years of experience, it’s reasonable to expect it to increase to between £50,000 and £70,000. Once you’re significantly experienced, you might have a base salary of between £150,000 and £165,000.

Investment banking vice presidents and managing directors (MDs) of investment banks will command the highest salaries, with the exact figure depending on the size of the bank they work for.

Whatever seniority you are in an investment bank, you’ll likely have the opportunity to earn bonuses. If you hit your targets, your earnings could hugely increase from the base salary figure in your contract.

Financial analysts typically earn between £30,000 to £51,000, with junior analysts earning closer to the lower end. If you work in London, your salary will probably be higher. It’s also possible to earn more once you’re more experienced. If you’ve got over five years of experience and you’re working in the capital, you could earn £80,000.

An asset manager or portfolio manager has an average salary of between £38,000 and £87,000. The exact figure will vary based on the performance of their assets under management and level of responsibility. Once again, those in London will likely earn more. An experienced London-based portfolio manager could have a salary as high as £130,000.

Senior managers and directors at top asset management firms will usually earn the highest salaries in the sector.

As with investment banking, there are opportunities to earn bonuses – some of which exceed the job’s yearly salary.

Key graduate employers in the investment banking and asset management sector include:

• Goldman Sachs
• Morgan Stanley
• J.P. Morgan
• Lloyds Banking Group
• BlackRock
• HSBC
• Barclays
• UBS
• Aviva

The investment banking and asset management sector is competitive. So, you need to stand out during the recruitment stage.

Like most graduate hiring processes, you’ll need to write an attention-grabbing application and impress in your interview (or, more likely, interviews).

Some of the stages to expect when applying for a job in investment banking or asset management include:

The first stage of the application process for most roles in investment banking and asset management will be filling out an online application form. As part of this stage, you’ll usually need to upload a CV with your work experience and a tailored cover letter that explains your interest in the role.

If your application impresses the recruiter, they might invite you to complete a series of online psychometric tests.

The tests will assess several of your skills including numerical reasoning, inductive and deductive logical reasoning and situational judgement. Some tests have time limits, so you’ll need good time management skills to get through to the next stage of the application. Try practising with example questions before attempting them for real.

If you pass the online tests, the next stage will likely be an interview. Sometimes, an interview will be over a video call. Other times, it’ll be in person. With many roles, it’s usual to have several interviews with the face-to-face interviews usually happening at the later stages (including at assessment centres).

If you do have multiple interviews, the first stage is usually with a member of the recruitment team (ie. not an investment banker or asset manager). They might ask you competency-based questions. They’ll also question why you’re interested in the role and company and why you think you’d make a good fit.

Instead of a back-and-forth interview with a person, some firms will ask you to pre-record a video interview of yourself answering questions within a time limit. It’s less common, but still worth practising for.

Need some guidance here? Check out our interview advice for students and graduates.

Usually, an assessment centre will be the final stage of the recruitment process for a grad job.

An assessment centre is usually a full- or half-day consisting of tests, group presentations and face-to-face interviews. You may answer similar questions to those in an earlier interview, but the assessment centre is where you’ll talk to specialists (and potential future colleagues) rather than recruiters. As with any interview, it’s important to research the role thoroughly as part of your preparation.

Pick up some tips and tricks with our guide on what to expect from an assessment centre.

There’s no ‘standard’ application process for roles in investment banking and asset management, so it’s worth preparing yourself for every stage and possibility.

This article was last updated in May, 2025.