An Investment Banker’s role includes providing strategic advice to its clients and managing transactions on behalf of them. The individual banker has to work as part of a team to ensure that the clients receive excellent advisory services. These clients range from small private companies to multi-national corporations and governments, or supranational organisations.
Examples of the daily activities of an investment banker include assisting with the execution of advisory and capital-raising transactions, and preparing confidential information memoranda, management presentations, marketing pitches and other presentations. They may be required to evaluate companies’ financial performance in comparison with overall industry and market trends, and to build complex financial models for valuation purposes, alongside other company and industry research.
An investment bank provides advice and strategic assistance for complicated professional financial services for corporations, governments and sometimes individuals. This includes advisory services and strategic corporate finance advice for mergers, acquisitions, and a wide range of complex financial transactions, as well as capital-raising services – assisting clients in raising funds in the capital markets through both debt and equity instruments. Investment banks may also be involved in trading activities for equities, currencies, derivatives or other financial products.
Some investment banks have private equity or wealth management divisions alongside their advisory businesses. These companies are sometimes called “buy-side” firms and their businesses are typically separated from their advisory services.