I’m in uni and saw another post about summer internships prior to IB. I saw people recommend doing hf or wm internships but I am wondering how skills in these roles can be relevant to investment banking. Can you learn valuation or diligence in these fields or are they more research focused?
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Based on the most helpful WSO content, it seems that internships in hedge funds (HF) or private wealth management (PWM) can indeed provide valuable experience that can be beneficial for a career in investment banking (IB).
In a hedge fund internship, you might not directly learn traditional valuation skills that are commonly learned in IB, but you will likely gain exposure to financial markets, investment strategies, and possibly some aspects of financial analysis. This could certainly be beneficial in an IB role, where understanding of financial markets and investment strategies is important.
In a PWM internship, you would likely gain experience in managing client relationships, understanding client needs, and possibly some exposure to investment strategies. These skills can also be valuable in IB, where client relationship management and understanding client needs are key aspects of the role.
However, it's important to note that the specific skills you would gain can vary widely depending on the specific role and firm. It's also worth noting that while these internships can provide valuable experience, they might not provide the same level of direct, relevant experience as an IB internship.
In terms of your question about whether you can learn valuation or due diligence in these fields, it's possible but not guaranteed. These skills are more directly related to IB and private equity (PE), so you might not get as much exposure to them in a HF or PWM role. However, you could potentially gain some exposure to these skills, depending on the specific role and firm.
Remember, the bright side to the long hours in IB is that you get great pay. You will have to develop a thick skin to work in IB / PE due to the hierarchical nature of these fields.
Hope that helps and good luck!
Sources: Is Harvard enough?, Is there any disadvantages to taking a hedge fund role as a graduate versus a an IB offer?, Advice For Sophomore Summer Internship, https://www.wallstreetoasis.com/forum/investment-banking/what-other-internships-can-i-get-that-relates-to-ib?customgpt=1
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