what you need to know the investment banking division

What is the Investment Banking Division (IBD)

IBD is descriptor for the Investment Banking Division at intervals the investment bank. IBD has responsibility for operating with companies, establishments, and governments to hold out capital raising (underwriting in equity, debt, and hybrid markets) still as for death penalty mergers and acquisitions and numerous kinds of consultive mandates.


Other Divisions of AN Investment Bank

Within investment bank, there’s a transparent line between the Investment Banking Division (IBD) and different areas of the bank such as:

  • Equity analysis
  • Sales and commercialism
  • Commercial banking
  • Asset management
  • Retail banking, and different areas

All of the on top of jobs are thought of “front office” (think: client-facing) career. additionally to front workplace careers at investment bank, there also are careers within the middle office like operations, technology, and human resources. Finally, there also are back office careers like accounting, payroll, technical school support etc.


Not everybody WHO Works at AN Investment Bank is AN broker

If somebody says they work in investment banking they ought to be concerning the IBD at intervals investment bank, though folks can usually claim to figure in investment banking once they don’t have add that division.

For this reason, true investment bankers are clear regarding the actual fact that they add IBD.

Not everybody WHO works at investment bank is broker.

To learn a lot of regarding skills needed within the investment banking division launch our investment banking courses!


Industry teams With IBD

The IBD is any divided into business teams. the foremost common teams are:

  • Technology Media & Telecommunication (TMT)
  • Financial establishments cluster (FIG)
  • Energy
  • Mining
  • Healthcare
  • Industrials
  • Real Estate

Job Titles within the Investment Banking Division (IBD)

There is a typical hierarchy at intervals the IBD that’s nearly a similar at the most banks. The titles and career path at the most banks are as follows:

  • Analyst targeted solely on monetary modeling, valuation work, and pitch book support
  • Associate manages the Analysts, conjointly will modeling and drafts pitch books
  • Vice President manages Associates, styles pitch books, goes to shopper conferences
  • Director meets with shoppers, structures deals, leads the team
  • Managing Director targeted nearly solely on winning new business/clients

To learn regarding compensation at every level examine our investment banking pay guide.


Additional Resources

This has been the CFI guide to however investment banks are structured and hopefully sheds some light-weight on precisely what it suggests that to be within the IBD. to stay learning and developing your career, we tend to extremely advocate these extra resources:

  • What Do Investment Bankers Do?
  • Investment Banking Interview queries
  • Equity analysis vs Investment Banking
  • Financial Modeling Guide

FMVA certification program

Advance your career in investment banking, non-public equity, FP&A, treasury, company development and different areas of finance.


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