IBD is an abbreviation for the Investment Banking Division inside the general investment bank. IBD has responsibility for working with institutions corporations & governments to carry out capital raising (underwriting in equity, hybrid markets, and debt) as well as for executing mergers and acquisitions and various types of advisory mandates.
Other Divisions of an Investment Bank
Inside an Investment Bank, there is an unmistakable line between the Investment Banking Division (IBD) and different regions of the bank, for example: Equity research
Sales and trading
Commercial banking
Asset management
Retail banking, and other areas
The total of the above jobs is considered “front office” (think: client-facing) careers. In the to Main office careers investment bank there are also careers in the “middle office” such as operations, technology, & human resources. Last, Finally, there are also “back office” careers such as accounting, tech support, payroll, etc.
Not Everyone Who Works at an Investment Bank as Investment Banker
Many people say they “work in investment banking” they should be referring to the IBD within an investment bank, although people will claim to work in investment banking when they do not have work in that division.
That is the reason, true investment bankers are clear about the fact that they work in IBD.
Not Everyone Who Works at an Investment Bank as Investment Banker.
To the learn more about skills required in the investment banking division launch our investment banking courses!.
Industry Groups With IBD
The IBD is further subdivided into industry groups. The most common groups are:Technology Media & Telecommunication (TMT)
Financial Institutions Group (FIG)
Energy
Mining
Healthcare
Industrials
Jobs Titles in the Investment Banking Division (IBD)
There is a standard within the IBD that is nearly the same at most banks. The titles and career paths at many banks are as follows:Analyst focused exclusively on financial modeling, and valuation work pitch book support
Vice President manages Associates designs pitch books gone to client meetings
Director meets with clients very best structures deals leads the team
The managing Director focused almost exclusively on winning new business/clients
To learn about compensation at each level check out the investment banking salary guide.
Additional Resources
This has been the CFI manual for how investment banks are organized and ideally reveals some insight into precisely being in the IBD. To continue learning and fostering your profession, we enthusiastically suggest these extra assets:What Do Investment Bankers Do?
Investment Banking Interview Questions
Equity Research vs Investment Banking
Financial Modeling Guide
FMVA certification program
Advance your career in investment banking equity, development, FP&A, corporate and private treasury other areas of corporate finance.
Investment Banking Middle Office
Normally incorporates risk management, financial control, corporate depository, corporate technique, and compliance. Eventually, the objective of the central office is to guarantee that the venture bank doesn’t take part in specific exercises that could be impeding the bank’s general well-being as a firm.
In capital raising, particularly, there is a critical connection between the front office and center office to guarantee that the organization isn’t taking on an excess of chance in underwriting certain securities.
Investment Banking Back Office
Regularly incorporates activities and technology. The administrative center offers help with the goal that the front office can do the positions expected to bring in make money for the investment bank.
