IBD Finance
What is the Investment
Banking Division (IBD)?
The Investment Banking Division of the larger investment bank is referred to as IBD. IBD is in charge of carrying out capital raising (underwriting in stock, debt, and hybrid markets), mergers and acquisitions, as well as numerous advising tasks, in collaboration with businesses, institutions, and governments.
Other Divisions of an Investment Bank
The Investment Banking Division (IBD) and other parts of an investment bank have distinct boundaries. Examples include:
- Equity research
- Sales and trading
- Commercial banking
- Asset management
- Retail banking, and other areas
All of the aforementioned positions are categorized as "front office" vocations (think: client-facing). Aside from front office positions, investment banks also provide "middle office" positions in areas like operations, technology, and human resources. In addition, there are "back office" employment in areas like payroll, computer support, and accounting.
Investment Bankers Aren't
the Only People Who Work at Investment Banks
Although people frequently claim to work in investment banking when they actually don't, when someone says they "work in investment banking," they should be referring to the IBD inside an investment bank.
Because of this, real investment bankers are upfront about the fact that they are IBD professionals.
Not all employees at investment banks are investment
bankers.
Launch our investment banking courses to find out more about the talents needed in the division of investment banking!
Groups in Industry with IBD
Industry groups are further classified into the IBD. The most frequent categories are:
- Financial Institutions Group (FIG),
- Energy
- Healthcare
- Mining
- Real Estate
- Industrials
- Technology Media & Telecommunication (TMT)
Job Titles in Investment Banking Division (IBD)
Within the IBD, there is a typical hierarchy that is essentially the same at most banks. The majority of banks provide the following positions and career paths:
- Analyst - solely focused on pitch book support, financial modeling, and valuation work
- Associate: oversees the Analysts and creates pitch books and models.
- Vice President: oversees Associates, creates pitch books, and attends client meetings.
- Director: meets with clients, negotiates contracts, and oversees the staff
- Managing Director: Almost solely concerned with acquiring new clients and business
- Visit our investment banking salary guide to learn more about pay at each level.
Further Resources
This has been the CFI's guide to the organizational structure of investment banks, which should help clarify what it really means to work in the IBD. We highly recommend the following supplementary sites to help you learn more and advance your career:
- What Do Investment Bankers Do?
- Investment Banking Interview Questions
- Equity Research vs Investment Banking
- Financial Modeling Guide
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