For those looking for a career in investment banking, it helps to know where investment banks are looking for employees. So where do investment banks recruit? As it happens, the search field for the major investment banks such as Goldman Sachs Group Inc. (GS) is relatively narrow.
Many university graduates are drawn from a list of "target schools" where investment banks concentrate most of their recruiting efforts in terms of regularly showing up on campus and offering multiple interviews and summer internship opportunities to undergrads.
Attending one of the top target schools makes getting an interview with multiple investment banks a fairly easy process, while students at other, non-target schools may find it difficult to line up even one or two interviews, and have to put forth considerably more effort to land those interviews.
Key Takeaways
- Breaking into investment banking is easier done if you go to one of the top “feeder” schools where the major investment banks recruit.
- Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor.
- Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
- Students looking to get a permanent job at an investment bank should consider trying to get a 12-week internship that many of these investment banks offer.
Investment Banking Profession
It is generally well known that investment banking is one of the hardest career fields to break into. Investment banking involves, along with exciting merger and acquisition (M&A) deals, exceptionally high salaries and bonuses, which makes an investment banking career attractive and one where there is a lot of competition for the available entry slots each year.
Investment banking is a relatively small niche within the overall financial services sector. There are simply not that many jobs available in the field as opposed to, for example, the field of accounting or retail banking. Attending a school that is an established source for employees of investment banks is, therefore, a key advantage.
Top Schools
University of Pennsylvania
The University of Pennsylvania, home to the famed Wharton School of Business, is one of the top feeder schools for the investment banking industry. However, the recruiting statistics for the overall number one university reveal an important point about investment bank recruiting, which is that each investment bank has its own individual list of preferred schools.
The University of Pennsylvania is one of the top schools for Goldman Sachs, Citigroup (C), and Credit Suisse (CS).
New York University
New York University (NYU) is right with the University of Pennsylvania in terms of where investment banks most frequently recruit new employees. NYU is a top school for many investment banks, including being a top school for new hires for Barclays (BCS), JPMorgan Chase (JPM), and Credit Suisse.
The University of Michigan at Ann Arbor
The University of Michigan at Ann Arbor is another top feeder school. The University of Michigan is a top school for boutique investment banking firm JPMorgan Chase and Goldman Sachs.
Other Top Schools
The Ivy League dominates many other spots for schools that investment banks target, including:
- Harvard
- Yale
- Cornell
- Princeton
- Columbia
Other notable schools include the University of Michigan, Georgetown University, the University of Notre Dame, and the University of Chicago.
For individuals aiming to get on with a certain bank, it is important to keep in mind each bank has its own preferred recruiting sources. For example, Bank of America (BAC) tends to grant more jobs to Cornell and Vanderbilt Universities versus the University of Penn. or NYU.
The Importance of Internships
Nearly all the major investment banks offer summer internship analyst programs that last approximately 12 weeks. Students who can land one of these internships not only gain valuable experience but also have the opportunity to develop networking relationships at the bank that can give them a substantial advantage when it comes to final hiring decisions.
FAQs
Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor. Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
Where do investment banks recruit? ›
On a volume basis, the four best schools for investment banking placement are:
- University of Pennsylvania.
- New York University.
- University of Michigan.
- The University of Texas at Austin.
Top 25 Feeder School For Bulge Bracket Banks
| Goldman Sachs | Total by % |
|---|
| 1. Harvard University | 30 | 3.50% |
| 2. New York University NYU | 31 | 3.50% |
| 3. University of Pennsylvania | 28 | 3.30% |
| 4. Columbia University | 16 | 2.70% |
6 more rowsFeb 11, 2022
Prevalence of select American university alumni at Goldman Sachs
| Rank | University | Factor |
|---|
| 1 | Princeton University | 2.130 |
| 2 | Cornell University | 1.650 |
| 3 | Yale University | 1.640 |
| 4 | Columbia University | 1.440 |
13 more rowsApr 4, 2023
Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.
Is a 3.8 GPA good for investment banking? ›
In recent years, the GPA cutoffs for investment banking have been trending higher. Currently, a GPA around 3.7 is often preferred for interviews at large banks, while elite boutiques and bulge bracket firms like Goldman Sachs and Morgan Stanley may look for a GPA of 3.8 or higher.
Where do top investment banks recruit from? ›
Three of the top schools that investment banks consistently interview and hire from include the University of Pennsylvania, New York University, and the University of Michigan at Ann Arbor. Beyond the top schools, the Ivy League schools, such as Harvard, are also key spots that investment banks look to hire from.
Is it harder to get into Goldman Sachs than Harvard? ›
Bagging a job at Goldman Sachs ' is a phenomenon rarer than receiving an acceptance letter from Harvard University. During a presentation in Miami Tuesday, the investing giant reported that roughly 3% of its applicants, or 9,700 out of 313,000, secured a position in 2015.
Is it harder to get into Harvard or Goldman? ›
Goldman Sachs is the premier investment bank in the world. With an acceptance rate of roughly 4%, it's harder to get into Goldman than it is to get into Harvard or Yale. Let me share how to get a job at Goldman Sachs from someone who did.
What is a Tier 1 investment bank? ›
Bank tiers indicate an institution's financial health. For example, a Tier 1 bank can immediately absorb losses without halting banking operations. A Tier 2 bank or institution with supplementary capital has less secure and harder to liquidate assets, which is less stable during a crisis.
Goldman Sachs hired at least six Wharton MBAs and five Harvard MBAs last year, but was nowhere to be found among the major employers at Stanford.
What colleges does Morgan Stanley recruit from? ›
The 15 Schools With The Most Alums At Morgan Stanley
- New York University (480 alumni)
- Rutgers University, New Brunswick (383 alumni)
- Columbia University (321 alumni)
- London School of Economics (300 alumni)
- University of Maryland, College Park (273 alumni)
- University of Pennsylvania (199 alumni)
They try to hire the top students from those schools as they have a track record of hiring talent from them. However, that does not mean that you cannot land such a job if you do not attend an ivy league school. If the banks do not come to your campus, then you need to get creative.
What is the most elite investment bank? ›
The Top 10 Most Prestigious Investment Banks for 2024:
- Goldman Sachs & Co.
- Morgan Stanley.
- J.P. Morgan.
- Centerview Partners.
- Evercore.
- Lazard.
- PJT Partners.
- Moelis & Company.
The Most Popular Banks for Millionaires
- JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. ...
- Bank of America Private Bank. ...
- Citi Private Bank. ...
- Chase Private Client.
Investment Banking Analyst
Analysts are the lowest in the hierarchy chain and therefore do the majority of the work. The work includes three primary tasks: presentations, analysis, and administrative.
Where do most investment bankers go to University? ›
Investment banks tend to recruit from a variety of top universities, but some of the most common recruiting schools include Ivy League universities such as Harvard, Princeton, and Yale, as well as other prestigious universities like Stanford, MIT, and the University of Chicago.
How do I actually get into investment banking? ›
Investment bankers start by earning a bachelor's degree, usually in a field like business administration, finance or statistics. A bachelor's degree typically takes four years of full-time study. Students can also pursue an internship or gain work experience while completing the degree.
Where do banks recruit from? ›
Target Schools: USC, Berkeley, and UCLA are the main target schools for banks in LA and SF. There is also representation from Stanford, the Claremont colleges, and other T20 schools (Northwestern, seen a couple Wharton, etc.) Grades: 3.5 GPA required, 3.8+ is better.
Where is the best city to work as an investment banker? ›
New York, New York, USA
New York City is typically considered the finance capital of the world. Many of the largest investment banks, including Goldman Sachs,15 Morgan Stanley,16 and Merrill Lynch,17 are headquartered in New York City. So too are several large banks, including Citigroup and JPMorgan Chase.
