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People who work in investment banking are usually grouped based on their function (M&A, IPOs, etc) or industry focus. When you join a bank for an internship or a full-time position, you could start as a generalist or join a team that focuses on a specific industry. The HR staff tends to ask newcomers if they have any industry knowledge/experience or preferences. One could even submit an ordered list with his/her preferences (e.g. 1 - Technology, 2 - Energy ...., 5 - Government).
Investment banking fees by industry in 1Q23
Industry
Fees
($m)
Change
Financials
7366,4
-41,00%
Industrials
2704,1
-20,00%
Energy and Power
2527,0
-15,00%
Government and Agencies
2509,3
4,00%
Healthcare
1557,2
-55,00%
Others
6325,6
-55,00%
Total
22989,5
-41,00%
The data shows that Financials is the hottest industry at the moment but there is no guarantee that this will continue forever. When I was a university student and I was trying to break into investment banking I focused mostly on FIG (Financial Institutions Group) since it was my favorite. I guess that today Technology is quite popular among students and young professionals. However, one should also take into account that the level of competition and workload can differ significantly across industries.
Thanks for this!
It would be interesting to see how each sector's fees have changed over time, or which teams generally are more resilient to recessionary periods. I guess there is some trade-off between choosing teams that interest you vs. teams where you think you can excel or have good future prospects/lower risk of being a victim of job cuts.
How easily or often do analysts tend to move between teams during their career?
I wonder how cyclical this is? There's been a lot of fireworks in Financials in 1Q23... Over the years, Tech, then Materials, then Banking, then Consumer, then Tech again have been the place to be.
What if the only choice to make is avoid the sector that has just done well? By the time it's back in favour it will be too late for you to move up the ranks
