ICAP Summer Internship (Odds of moving to IB full-time) (HELP)
Kind of in a weird spot. I received and accepted a summer internship at ICAP this summer. I really want to get into investment banking but this is my last summer. I am unsure how this internship will pan out and will likely take return offer if received but will start networking for IB for 2025 full time positions. Has anyone been through a similar situation, finance adjacent internship followed by an IB position. Does anyone know what the actual comp is like starting out versus 10 years down the line in IDB? Is the summer internship salary prorated (I know it is for IB/high consulting but not for other internships). I am going to give this internship my best shot and work my behind off but I really want IB.
Another issue is whether or not banks value an IDB summer internship. I know some stories of moving to S&T but what about into Ibanking. Have some contacts in muni and self-taught DBC but that is about it.
There is very little information on this site about IDB, either very old or very surface level. please chime in with anything you know about idb or moving to ib later on. I need your help folks.
Thanks!
Based on the most helpful WSO content, transitioning from a finance-adjacent internship like ICAP to a full-time investment banking (IB) role is definitely possible, but it will require a strategic approach. Here are some steps and considerations based on similar experiences shared on WSO:
Leverage the Internship: Use your time at ICAP to gain as much relevant experience as possible. Focus on developing skills that are transferable to IB, such as financial analysis, market research, and client communication.
Network Aggressively: Start building relationships with professionals in the IB industry. Use your current internship as a talking point to show your commitment to finance. Networking can often lead to interviews and job opportunities.
Understand the Compensation Trajectory: In IB, starting compensation for analysts with 0-3 years of experience can range from $130,000 to $180,000 all-in. With 3+ years, it can exceed $500,000, and with 8+ years, it can surpass $1 million. After 15+ years, the sky's the limit. These figures can vary based on the firm, location, and market conditions.
Internship Salary: Summer internships in IB typically offer prorated salaries based on the full-time analyst's salary. While specific compensation for ICAP internships isn't detailed in the WSO threads, it's common for financial internships to offer some form of prorated compensation.
Value of IDB Internship: Banks do value diverse experiences, and an internship in inter-dealer broking (IDB) can be seen as relevant, especially if you can demonstrate how the skills you've acquired are applicable to IB. It's about how you frame your experience and the competencies you've developed.
Educate Yourself: Continue to self-educate on topics relevant to IB. If you have experience with municipal finance and DBC, that's a great start. Deepen your knowledge in financial modeling, valuation, and other key areas of IB.
Remember, the path from a finance-adjacent role to IB is not uncommon, and with the right strategy, you can make the transition. Keep honing your skills, networking, and be ready to articulate how your experiences make you a strong candidate for IB.
Sources: Asset Management vs Investment Banking 101, Best place to start your career? IB or Tech?, Can you really be rich by working as an investment banker?, What has been your total compensation progression in your career?, 10 years in banking, tech, and consulting
Hey I did a summer internship at ICAP about 10 years ago, took a full time offer, and worked there for about 6 years. I’m sure the structure of the internship and full time hiring process has changed a bit since then, but will share my experience.
This line of work requires next to zero technical knowledge or skills. The most successful brokers are those that have the best relationships with BBs/traders with big comm wallets. You will meet guys/girls that might look like a hippie, a pizza guy, a meathead, etc that make upwards of several millions of dollars a year. Many of the desks have explicit comp packages that give brokers a fixed % of comms they bring in, which can become pretty lucrative. In some cases, the brokers can make more than the BB traders they cover.
To get to that level though requires a combination of grinding through client entertainment several nights a week plus being in the right place at the right time. You need to be in a product that has wide spreads and room for growth, and therefore a need for young people to cover new accounts. Desks that cover more mature products will be very defensive of their existing clients and will likely take any new leads for themselves.
The internship was effectively a two month long interview for the full time job, where I shadowed various desks, asked questions about the products, and developed rapport with the senior brokers. I basically had to prove I was a social, even-keeled, and half-way intelligent person to get a full-time offer.
The full time program was a similar rotation where I was tasked with finding a fit with a desk. I eventually landed on a small desk that had recently lost their one junior, covering a breadth of bespoke products. I was fortunate in that they had me cover (small) clients immediately, introduced me to their bigger clients, and tried to teach me as much technical knowledge as they could. Within three/four years I was making $300k+. The more senior guys were all pulling in $1-3m. I decided to leave when I saw little room for further comp growth due to comm rates and spreads decreasing, electronification of my product, overcrowding of the space, as well as a personal desire to gain more product and industry knowledge.
I believe I was one of the more successful grads to come out of the program. Some kids simply didn’t have the hunger to (smartly) push and ask for opportunity. Others landed on desks with little opportunity. Within that second group, some of the more polished kids were able to network with the bank traders they met through the job and land S&T gigs at the banks.
As far as moving into IB, I would not expect there to be any real exit opportunities. You would have to either have an extremely strong personal connection for a specific opportunity or save up some cash and go to b-school.
Best of luck.
Qui qui fuga in recusandae adipisci adipisci earum. Soluta porro et et sapiente ipsa numquam explicabo.
Doloribus quia eum ex praesentium enim nostrum. Est voluptatem sunt molestiae quasi officiis aut quia. Omnis libero consequatur et voluptas quo ab. Repudiandae autem autem excepturi voluptatum quam sit est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...