| Topic Name: |
Clue me in please |
| Message Name: |
IM v. IB |
| Date Posted: |
05/08/2002 |
| In Reply To: |
Could someone just describe to a newbie how Asset or Investment management differs from investment banking. I am an engineer looking to change fields. I especially want to know comparisons in quality of life issues, compensation, and location as well as the relative difficulty breaking into IM vs IB. |
| Message: |
Those in Investment Management are entrusted with the assets of individuals and/or institutions (e.g., endowments, foundations, pension plans, etc.) to invest. Portfolio managers at a mutual fund company are a great example.
Investment Banking can mean a lot of things. Most often when people say investment banking they are referring to the corporate finance function of firms such as Goldman Sachs, Morgan Stanley, etc. These people are involved in arranging IPOs, debt offerings, and mergers & acquisitions for companies.
Although there are many exceptions, in general, the following appears to be true (when comparing firms of similar quality, caliber, etc): Quality of life is better in IM, compensation is somewhat comparable (possibly slightly higher in IB). IB is biggest in NY, with other opportunities in SF and Chicago. Smaller regional firms are in LA and many other cities. IM is biggest in NY and the Boston area. Many others, even large ones are all over the country. Both are tough to crack into, IM is probably harder than IB, based on the fact that there are less opportunities in IM. However, you almost certainly need a Top 20 MBA for IB, but not necessarily for IM (although many do). For IM, the CFA designation (see aimr.org) is key.
Good Luck!
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