What does an investment banking associate do?
An investment banking associate is in charge of performing support tasks for clients, ensuring efficiency and client satisfaction. They are primarily responsible for identifying and meeting clients' needs, assisting them in reaching their financial goals. They typically determine investment opportunities for clients, putting financial histories and records into consideration. They must thoroughly discuss terms, helping clients gain a deep understanding of the subject while building positive relationships. Furthermore, an investment banking associate may perform clerical tasks such as processing documentation and payments, producing progress reports, and performing calls and correspondence.
Investment banking associate responsibilities
Here are examples of responsibilities from real investment banking associate resumes:
- Achieve the highest grades in a bank run 5 day advance equity derivatives course.
- Manage ongoing maintenance of prospective investor pipeline using SalesForce software.
- Create valuation models associate with above projects, specifically LBO, DCF and accretion/dilution analysis.
- Perform extensive valuations of private and public companies through comparable company and DCF analyses.
- Attend global healthcare conference in Miami and meet with prospective clients/investors
- Create business analysis regarding the firm's origination and execution capabilities.
- Valuate the company by DCF method and other comparative methods with sensitivity analysis.
- Perform financial modeling and construct acquisition scenarios in healthcare and consumer and retail sectors.
- Prepare and deliver cable industry presentations, gaining significant exposure to leverage finance marketplace.
- Research and monitor global macro risk indicators, economic data, and political events.
- Analyze equity, fix income, and structure product securities for investment consideration and portfolio implementation.
- Complete valuations, strategic reviews and fairness opinions of investment management, securities firms and relate financial services companies.
- Evaluate and execute all phases of transactions, including deal origination, preparation of investor packages and facilitating closing documentations.
- Construct LBO model used to evaluate various acquisition financing and leverage scenarios, and to analyze management and sponsor financial returns.
- Specialize in public and private debt and equity placements, syndicate credit facilities, highly leverage transactions and mergers and acquisitions.
Investment banking associate skills and personality traits
We calculated that 7% of Investment Banking Associates are proficient in Capital Markets, Healthcare, and Discounted Cash Flow. They’re also known for soft skills such as Communication skills, Computer skills, and Analytical skills.
We break down the percentage of Investment Banking Associates that have these skills listed on their resume here:
- Capital Markets, 7%
Prepared and presented internal approval memos for equity and debt capital markets transactions to various executive-level investment banking committees.
- Healthcare, 6%
Executed on advisory and financing transactions for Biotechnology, Healthcare Service, Medical Supply & Device and Pharmaceutical companies.
- Discounted Cash Flow, 6%
Performed valuation modeling and analysis, including discounted cash flows, leveraged buyout, comparable company and precedent transaction.
- Private Equity, 4%
Acted as primary private equity gatekeeper for managing directors, evaluating and summarizing business plans for venture capital investment opportunities.
- Capital Raising, 4%
Evaluated, analyzed and executed a wide variety of capital raising assignments including loans, high yield and equity offerings.
- Securities, 4%
Completed valuations, strategic reviews and fairness opinions of investment management, securities firms and related financial services companies.
Common skills that an investment banking associate uses to do their job include "capital markets," "healthcare," and "discounted cash flow." You can find details on the most important investment banking associate responsibilities below.
Communication skills. To carry out their duties, the most important skill for an investment banking associate to have is communication skills. Their role and responsibilities require that "financial analysts must be able to clearly explain their recommendations to clients." Investment banking associates often use communication skills in their day-to-day job, as shown by this real resume: "syndicated leveraged finance technology, media and telecommunications high yield debt issuance"
Computer skills. Another essential skill to perform investment banking associate duties is computer skills. Investment banking associates responsibilities require that "financial analysts must be adept at using software to analyze financial data and trends, create portfolios, and make forecasts." Investment banking associates also use computer skills in their role according to a real resume snippet: "served mainly as a teller, gaining experience with handling cash, business computer software, and providing excellent customer service. "
Analytical skills. Another skill that relates to the job responsibilities of investment banking associates is analytical skills. This skill is critical to many everyday investment banking associate duties, as "financial analysts must evaluate a range of information in finding profitable investments." This example from a resume shows how this skill is used: "received extensive training in advanced accounting, financial modeling, valuation and credit analysis"
Detail oriented. For certain investment banking associate responsibilities to be completed, the job requires competence in "detail oriented." The day-to-day duties of an investment banking associate rely on this skill, as "financial analysts must pay attention when reviewing a possible investment, as even small issues may have large implications for its health." For example, this snippet was taken directly from a resume about how this skill applies to what investment banking associates do: "delivered results-oriented financial analysis and reporting while highlighting risks and opportunities for improved expense management and process improvements. "
Math skills. A commonly-found skill in investment banking associate job descriptions, "math skills" is essential to what investment banking associates do. Investment banking associate responsibilities rely on this skill because "financial analysts use mathematics to estimate the value of financial securities." You can also see how investment banking associate duties rely on math skills in this resume example: "assisted on strategic projects by contributing financial models, qualitative research and quantitative research to build the final recommendation. "
The three companies that hire the most investment banking associates are:
- Bank of America52 investment banking associates jobs
- JPMorgan Chase & Co.42 investment banking associates jobs
- Citi38 investment banking associates jobs
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Investment banking associate vs. Contract analyst
A contract analyst is primarily in charge of thoroughly reviewing contract terms and conditions, negotiating and addressing changes on behalf of a company or an individual, and avoiding financial disadvantages or any disputes. They are responsible for consulting with clients, analyzing clauses and liabilities, recommending amendments, documenting all transactions, and monitoring every change in the contract. Furthermore, there are instances when a contract analyst must coordinate with all department officers, advising them of any significant changes that the contracts might bring.
There are some key differences in the responsibilities of each position. For example, investment banking associate responsibilities require skills like "capital markets," "healthcare," "discounted cash flow," and "private equity." Meanwhile a typical contract analyst has skills in areas such as "customer service," "contract management," "contract terms," and "sql." This difference in skills reveals the differences in what each career does.
Contract analysts earn the highest salaries when working in the pharmaceutical industry, with an average yearly salary of $66,570. On the other hand, investment banking associates are paid more in the finance industry with an average salary of $118,668.contract analysts tend to reach lower levels of education than investment banking associates. In fact, contract analysts are 18.9% less likely to graduate with a Master's Degree and 2.2% more likely to have a Doctoral Degree.Investment banking associate vs. Treasury analyst
A treasury analyst is an individual who manages and analyses the financial activities of an organization that can include cash flows, liability obligations, and assets. Treasury analysts are required to execute the daily cash management of the organization such as cash forecasting, investing of excess cash, and running a hedging program in interest rates. They must present monthly reports and daily briefings on cash flows to senior management and provide advice on the financial operations of the movement of cash. Treasury analysts also update treasury policies and procedures for the organization to comply.
In addition to the difference in salary, there are some other key differences worth noting. For example, investment banking associate responsibilities are more likely to require skills like "healthcare," "private equity," "capital raising," and "valuation analyses." Meanwhile, a treasury analyst has duties that require skills in areas such as "cash management," "ach," "treasury operations," and "reconciliations." These differences highlight just how different the day-to-day in each role looks.
Treasury analysts earn a lower average salary than investment banking associates. But treasury analysts earn the highest pay in the automotive industry, with an average salary of $87,077. Additionally, investment banking associates earn the highest salaries in the finance with average pay of $118,668 annually.In general, treasury analysts achieve lower levels of education than investment banking associates. They're 15.8% less likely to obtain a Master's Degree while being 2.2% less likely to earn a Doctoral Degree.Investment banking associate vs. Equity analyst
An equity analyst's role is to help clients navigate through stocks and bonds using their expertise. In a company setting, their responsibilities revolve around performing extensive research and analysis on areas such as the stock market, coordinating with different departments to gather necessary data, identifying new opportunities, preparing and analyzing the company's financial records, and creating forecast models. Furthermore, as an equity analyst, it is essential to make recommendations in adherence to the company's policies and regulations, including its vision and mission.
Some important key differences between the two careers include a few of the skills necessary to fulfill the responsibilities of each. Some examples from investment banking associate resumes include skills like "capital markets," "private equity," "capital raising," and "valuation analyses," whereas an equity analyst is more likely to list skills in "portfolio companies," "powerpoint," "fundamental analysis," and "investment process. "
Equity analysts earn the highest salary when working in the finance industry, where they receive an average salary of $125,442. Comparatively, investment banking associates have the highest earning potential in the finance industry, with an average salary of $118,668.Most equity analysts achieve a lower degree level compared to investment banking associates. For example, they're 8.5% less likely to graduate with a Master's Degree, and 1.3% less likely to earn a Doctoral Degree.Investment banking associate vs. Summer analyst
Summer analysts are people who undertake an internship within a banking institution. These professionals perform analyses of detailed financial and corporate information. They establish statistical exhibits analyzing comparative financial performance. It is their responsibility to create models illustrating projected financial results, which is of great value to the companies. The skills necessary for this job include knowledge of financial statements, equity, portfolio companies, and financial models. They should also develop due diligence, strong communication, asset allocation knowledge, and attention to detail.
Types of investment banking associate
Updated January 8, 2025











