How to Land an Investment Banking Internship

Getting a good investment banking internship can be your ticket to receiving a full-time return offer upon graduation. It can also help you decide whether that’s the career path you want to pursue in the long-term. However, these internships are notoriously competitive—with most banks’ acceptance rate being around or below 1%. Just think about these 2024 acceptance rates: Goldman Sachs 0.9%, JPMorgan Chase 0.81%, and BNP Paribas 0.4%.

Don’t let the competitiveness of the industry scare you though. If you’re willing to learn what it takes to land an investment banking internship and put in the effort to stand out, you might be among those who receive multiple offers. Read on for the insights on how to prepare strategically.

What Can You Expect from an Investment Banking Internship?

Let’s start with what you can expect from an investment banking internship. As an intern, your duties will often involve supporting IB analysts and associates. Their work can vary depending on the group and deals they are working on, such as mergers and acquisitions, capital raising, and restructuring. As a result, they may assign you different tasks like:

• Creating and organizing presentation materials for client meetings and proposals
• Gathering industry and company data to support financial analysis and presentations
• Organizing contact details and preparing information for client outreach
• Working on team projects that may involve financial modeling or investment evaluations
• Performing miscellaneous duties like ordering food, managing schedules, or preparing market updates

Expect to work at least 40 or more hours a week as an intern depending on the company. If the associate or analyst you’re working under spends 80+ hours in the office, they might expect you to be at the office or on call much of the time. Some investment banks balance this by putting a cap on the internship hours.

On average, investment banking internships last between 9 to 12 weeks during the summer. In addition to summer internships, some firms offer off-cycle internships that can last from 3 to 6 months.

How Do You Get an Internship in Investment Banking?

To secure an IB internship, you'll need to strategize early, network, and learn the skills needed. Below are the details on how to do that.

Start Early with Your Preparation

To get a good investment banking internship, you’ll typically need an overall GPA of around 3.5 or higher, at least one solid finance internship, or a student activity that demonstrates leadership skills. This means you must start preparing as early as your first year to meet the qualifications that will position you as a strong candidate.

During your freshman year, you can focus on networking and strategizing your path. Also, select relevant courses like finance, accounting, engineering, math, or statistics. Then schedule the easy classes in your year one and leave the harder ones for later years. This way, you can be sure of earning a higher GPA with the right efforts.

As you transition into your sophomore year, shift your emphasis toward securing finance internships and attending early insights programs. These programs often give a glimpse into the investment banking world and can enhance your resume.

With your finance internships, high GPA, and professional network, you’ll be ready to apply for the summer investment banking internships when they open in your second year.

Network Strategically

Establishing connections can provide you with valuable insights, mentorship, and potential job leads. So, start as early as possible. Some of the places you can network include:

• Networking events: Explore various networking events for finance professionals. They don’t all need to be investment banking events specifically.
• Finance-related events and workshops: These gatherings provide opportunities to meet professionals, build relationships, expand your network, and learn about the latest trends in the industry.
• LinkedIn: The platform is a good place to connect and network with people you wouldn’t necessarily access. Check out LinkedIn groups as well.
• Clubs, organizations, and activities: Find out if there are any clubs or organizations that are beneficial for finance professionals on your campus. These include investing clubs.
• Investment banking case competitions: Show off your skills and enhance your resume while meeting potential networks through these competitions.
• Diversity programs and early insights opportunities: If you qualify for any of these programs which are often company-specific, they can enhance your visibility and offer great opportunities to connect with potential future colleagues.

👉 Read this article and get more tips on how to network your way into investment banking!

Gain Relevant Experience

To prepare for an investment banking internship, ensure you get a finance internship in your freshman year or in the summer after your first year. Since banks are opening applications as early as 1.5 years prior, having the experience soon will help you apply to a good number of banks.

Other ways to gain experience include participating in case competitions, joining investment clubs or finance societies, and taking relevant coursework in school.

You can still land an investment banking internship with no experience by networking with the right people and seeking volunteer opportunities. But that will require a lot of effort before you can see the results.

Gain Relevant Skills

While you might not perform the major tasks for investment bankers as an intern, you shouldn’t limit your knowledge of the technical side. Consider learning the technical and hard skills that will help you demonstrate your ability to get the job done. Having the skills can also help you make the most of your internship by taking on more work.

These skills include:

• Accounting
• Proficiency in Excel, PowerPoint, and financial modeling basics
• Discounted cash flow (DCF) analysis
• Basic M&A and LBO concepts
• Net present value (NPV)
• Compound annual growth rate (CAGR)
• Weighted average cost of capital (WACC)

You can acquire these skills through online courses, workshops, or self-study. Ensure you build up your soft skills as well, including communication, time management, and analytical thinking. These skills get you hired and determine if you’ll get a return full-time offer.

How Early Should You Apply for an Investment Banking Internship?

Investment banking internship applications typically open in year 2 of university, especially in the United States. This could even be as early as 18 months before the internship start date. So, you must be on top of the IB internship application open dates by monitoring news alerts and job postings. If you’re lucky enough to be in a target school, you can get correct information on a bank’s timeline when they host networking sessions, information sessions, and coffee chats at your university.

Here’s how the investment banking internship application process looks like:

• Compile a list of the top investment banking firms
• Submit an online application (resume, cover letter, and transcripts)
• Do a pre-recorded interview & pass online assessments
• Attend the first round of interview (virtual or in-person)
• Attend superday interviews (in-person)
• Get and accept the internship offer

When looking at the list of top investment banking firms, it’s a good idea to cast your net widely. Don’t just apply to bulge bracket banks even if you’re in a target school and have excellent grades. Instead, consider middle-market and boutique investment banks as well. But don’t apply for multiple roles within one company as it might be taken as a red flag.

How Can You Prepare for an Investment Banking Internship?

Receiving invitations for interviews can be exciting and overwhelming at the same time. You’re happy to be selected but you also have a task to put your A-game on. Ideally, here are the things you should know before an investment banking internship interview:

• Familiarize yourself with the typical interview process, including phone screens and Superday formats
• Be ready to discuss your background, experiences, and motivations for pursuing investment banking
• Prepare for fit questions that assess your teamwork, strengths, and weaknesses
• Understand the bank's culture, recent deals, values, and its position in the market
• Brush up on your knowledge of the economy and financial markets

You can ensure you stand out in investment banking interviews by preparing thoroughly for behavioral or fit interviews using the STAR method (Situation, Task, Action, Result). Also, do mock interviews with peers, mentors, or even a professional coach. They can provide valuable feedback that gives you insights into areas for improvement.

What if You Start Late or Miss Application Deadlines?

If you’re already late in acquiring the necessary qualifications or have missed the internship application deadline, you will need alternative options or a “plan B”. These might look like applying for off-cycle internships or related roles in finance (corporate banking or corporate finance) to gain relevant experience. Such opportunities can get you a full-time return offer upon graduation. Then you lateral into IB after a year or so.

Alternatively, you can consider areas like equity research that may give you a chance without prior internships. Another good but slow and expensive route is working and doing an MBA.

When you’re already out of options, networking is very essential. Your connections in the industry or alumni can guide you to potential opportunities.

What Should IB Interns Do to Get the Return Offer?

Once you secure an internship, how you work and relate with your colleagues can influence the decision of a return offer. So, network with colleagues at all levels, including analysts, associates, and senior bankers, to establish rapport and visibility within the firm. But never bypass the analysts and associates in terms of work assignments or paint them negatively to seniors.

Do your work diligently to demonstrate reliability and competence. You can also volunteer for additional responsibilities and show eagerness to learn, even if it means stepping outside your comfort zone. Don’t forget to regularly ask for constructive feedback from supervisors to improve your performance throughout the internship

Wrapping It Up

Securing an investment banking internship requires you to put on your best effort from the freshman year. You must choose your coursework wisely, get good grades, network, do finance internships, and prepare for interviews.

Once you’ve landed an internship, you can secure a full-time return offer after graduation by taking the initiative on projects, demonstrating a strong work ethic, and showing enthusiasm for the work you’re doing. We wish you much success!