Corporate Banking to IB

To successfully lateral from corporate banking to investment banking (IB), here’s what you need to know based on the most helpful WSO content:

Best Product/Industry Groups to Target

1. Industry Coverage Groups: Since you’re already in a coverage role, targeting industry groups in IB that align with your current expertise can make the transition smoother. For example, if you cover healthcare or energy in corporate banking, aim for IB groups specializing in those sectors.
2. Leverage Your Lending Background: Groups like FIG (Financial Institutions Group) or Leveraged Finance may value your lending experience, as it can be directly applicable to their work.
3. Boutiques or Middle Market Banks: These firms may be more open to candidates with non-traditional backgrounds compared to bulge brackets.

Timeline for Transition

• Flexible Timeline: Lateral recruiting timelines can vary significantly. Some processes may take a week, while others can stretch over several months. Be prepared for variability.
• Urgency in Hiring: Many banks post lateral roles when they need to fill positions quickly. This means you should act fast when opportunities arise.

Networking Tips

1. Leverage Your Existing Network: Reach out to contacts in IB, especially those with similar backgrounds. Networking with people who’ve made the same jump can provide valuable insights and referrals.
2. Targeted Outreach: After applying to a position, send follow-up emails to associates or senior bankers in the group. Express interest in learning about the group’s culture and how your skills align with their needs.
3. Internal Networking: If you’re considering moving within your current bank, build strong relationships with IB teams. Demonstrating your knowledge of the industry and producing high-quality work can make you a strong internal candidate.

Interview Process

1. Focus on Deal Experience: Highlight any relevant deal experience or transferable skills from corporate banking. If you lack modeling experience, consider taking a financial modeling course to bridge the gap.
2. Prepare for Technicals: While lateral interviews are often less technical than full-time recruiting, you still need to be well-versed in financial modeling, valuation, and M&A concepts.
3. Behavioral Questions: Be ready to explain why you’re making the switch from corporate banking to IB. A strong answer could include your desire to work on more complex transactions or gain exposure to different products.

Additional Resources

• Consider using WSO’s Investment Banking Resume Review Service to tailor your resume for IB roles.
• Take a modeling course if you feel underprepared for technical interviews.

Making the jump from corporate banking to IB is challenging but achievable with the right preparation and strategy. Good luck!

Sources: Lateraling Guide for Investment Banking, Lateraling Guide for Investment Banking, 2017 Commercial/Corporate Banking Bonuses, A Guide for Switching From Commercial Banking to Investment Banking