Investment Banking University Recruiting Report – 7 Key Takeaways

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As part of the 2017 Investment Banking Report, Wall Street Oasis compiled detailed statistics regarding the connection between universities and employment trends with investment banks. The following article analyzes the data and highlights key takeaways for both bulge bracket and other notable banks.

Key Takeaway #1: University of Pennsylvania and NYU are the top two schools for percentage of recruiting/hiring efforts for both bulge bracket and other notable banks.



2017 University Statistics - Bulge Bracket Banks



Key Takeaway #2: The University of Pennsylvania, NYU, Harvard University and Duke University were the only top 10 schools to receive recruitment and hiring focus all bulge bracket banks included in the report.

The university statistics data provides an overview of which undergraduate institutions are most attractive to investment banking firms during the recruitment and hiring process. Schools included in the report have received four or more submissions.(1)

The investment banks represented in the Bulge Bracket section of the report include Bank of America Merrill Lynch, Barclays Capital, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley, UBS AG and Wells Fargo.


Percentage of Overall Distribution


Top 10 Target Schools - Bulge Bracket Investment Banks

  • University of Pennsylvania - 3.2%
  • New York University - 3.0%
  • Harvard University - 2.6%
  • University of Cambridge - 2.5%
  • Cornell University - 2.3%
  • The University of Texas at Austin - 1.9%
  • Columbia University - 1.8%
  • Duke University - 1.8%
  • University of Chicago - 1.7%
  • University of Michigan - 1.7%


Key Takeaway #3: These top 10 institutions account for 21.9% of the overall distribution of recruitment and hiring efforts from the bulge bracket banks.

This compares to 20.1% of overall distribution for the same institutions at other notable banks (see below).

The University of Pennsylvania is the top target school for bulge bracket banks with strong recruiting and hiring numbers across the board. Students at this university receive the strongest representation from Credit Suisse (4.8%), Morgan Stanley (4.6%) and Citigroup (4.4%).

Other target schools include New York University, favored by Barclays Capital (5.9%), JPMorgan (3.6%) and Citigroup (3.5%), and the University of Cambridge attracting JPMorgan (4.6%), Credit Suisse (3.6%) and Morgan Stanley (3.6%). Harvard University is favored strongly by JP Morgan at 5.4% and Goldman Sachs & Morgan Stanley both at 3.3%. The University of Texas at Austin attracts Deutsche Bank at 4.1%.

Columbia University attracts the most attention from Morgan Stanley (3.6%), JPMorgan (3.1%) and Credit Suisse (3.0%). The University of Chicago finds favor with Goldman Sachs (2.9%), Credit Suisse (2.4%) and Bank of America/Merrill Lynch (2.3%), while UBS AG, Wells Fargo and Morgan Stanley favor Duke University at 3.9%, 3.6% and 3.0%, respectively. The University of Michigan receives its strongest showing from Barclays Capital at 4.2% with Goldman Sachs (2.3%) and Morgan Stanley (2.0%) rounding out the top three.

Notably, a few bulge bracket banks show no interest in some of the top 10 universities. Our data suggests that Credit Suisse had little to no recruiting at Cornell University or the University of Michigan while Wells Fargo avoided Columbia University and the University of Chicago. Deutsche Bank also left Columbia University off its recruitment and hiring list, and Barclays Capital did the same for the University of Cambridge and the University of Chicago. Finally, UBS AG showed no interest in the University of Texas at Austin and the University of Michigan based on our data.

Overall, the University of Pennsylvania, New York University, Harvard College and Duke University were the only top 10 schools to receive recruitment and hiring focus from all of the bulge bracket banks included in the report. Columbia University, the University of Chicago and the University of Michigan each had two bulge bracket banks avoid them completely based on the data collected by WSO.


Percentage Change in Distribution Since 2016 Report

While the University of Pennsylvania and New York University rank in the top two target schools for bulge bracket banks, both show a decrease in overall percentage since the 2016 report of 2% and 18%, respectively. A strong increase from Wells Fargo, Barclays Capital and Credit Suisse kept the University of Pennsylvania in the number one spot even with its 2% overall decrease. New York University's 18% overall decrease is due mostly to a notable decrease from Morgan Stanley. It remains in the top two primarily due to a strong increase from Credit Suisse.

The University of Texas at Austin showed the largest increase overall at 21% and with large increases from Morgan Stanley, JPMorgan and Deutsche Bank. Columbia University's overall modest 6% decrease was balanced with an increase from Morgan Stanley and decreases from Bank of America/Merrill Lynch. Despite decreases from several bulge bracket banks, Duke University had a 1% increase overall due to strong interest from Credit Suisse.

The University of Chicago had a solid 15% increase overall thanks to several notable increases from Goldman Sachs, Credit Suisse and Morgan Stanley. However, significant increases from Morgan Stanley and Bank of America/Merrill Lynch couldn't help the University of Michigan avoid its 13% decrease overall due to decreases or limited interest from the other six investment banks.

Overall, Citigroup and Morgan Stanley showed increases at the greatest number of top 10 schools. Deutsche Bank showed the largest overall increase of 355% at the University of Texas at Austin, while Credit Suisse and JPMorgan rounded out the top three with a 200% increase at Duke University and 133% increase at the University of Texas at Austin, respectively.


Ivy League vs State School IB Representation

It is important to note that the University of California, Berkeley shows a significant 33% decrease in recruitment and hiring efforts from bulge bracket banks. In contrast, Arizona State University makes a 169% leap due to significant interest from Wells Fargo, Deutsche Bank and Bank of America/Merrill Lynch. Ohio State University also enjoyed a large 118% increase, while Penn State showed a notable 60% overall increase.


Key Takeaway #4: This trend points to the large bulge bracket banks' willingness to poach top talent from a wider selection of schools and, most notably, larger state academic institutions gaining respect for their strong business programs.

Other semi-target schools showing striking increases include the Georgia Institute of Technology at 79% and the University of Sydney at 105%. However, it's important to note these moves are based on small sample sizes and are subject to volatile fluctuations as a result. In order to see exact sample sizes, simply click on the "sample size" toggle at the top of the university charts of the IB Industry Report.




2017 University Statistics - Other Notable Banks



Key Takeaway #5: Top 10 institutions account for 23.4% of the overall distribution of recruitment and hiring efforts from the "other notable banks".

Wall Street Oasis' Investment Banking Report also provides university statistics for other notable banks outside of the bulge bracket. This data offers insight into which undergraduate institutions are most attractive to investment banking firms during the recruitment and hiring process. Schools included in the report have received four or more submissions.(1)

The data is inclusive of 22 other notable banks, including BMO, Blackstone Group(2), Cohen Group, Duff & Phelps, Evercore, Greenhill, HSBC, Harris Williams, Houlihan Lokey, Jefferies, KeyBanc, Lazard, Lincoln, Macquaire, Moelis, Nomura, Oppenheimer, PJT Partners(2), PWP, Piper Jaffray, RBC, Raymond James, Rothschild, Societe Generale, SunTrust and William Blair.


Percentage of Overall Distribution


Top 10 Target Schools - Other Notable Investment Banks

  • University of Pennsylvania - 3.5%
  • New York University (NYU) - 3.0%
  • University of Western Ontario Richard Ivey School of Business - 2.5%
  • University of Virginia (UVA) - 2.5%
  • Harvard University - 2.4%
  • University of Michigan - 1.9%
  • University of Cambridge - 1.9%
  • Columbia University - 1.9%
  • University of California, Berkeley - 1.7%
  • London School of Economics - 1.7%


These top 10 institutions account for 23.4% of the overall distribution of recruitment and hiring efforts from the other notable banks. This compares to 19.6% of overall distribution for the same institutions at bulge bracket banks.

Notably, the two top academic institutions, the University of Pennsylvania and NYU, remain the same for both bulge bracket and other notable banks. Interestingly, the top 10 institutions for other notable banks are also in the top 20 for bulge bracket banks. In comparison, the top 10 institutions for bulge bracket banks are all in the top 25 for other notable banks.

The University of Pennsylvania is the top target school for other notable banks with strong recruiting and hiring numbers across the board. Students at this university receive the strongest representation from PJT Partners (16.2%), Moelis (11%) and William Blair (10.8%).

Other target schools include NYU, favored by Evercore (10.7%), Oppenheimer (10%) and Rothschild (8.6%), and the University of Western Ontario strongly represented by Greenhill at 10.7% with Houlihan Lokey and BMO following at 7.5% and 6.3%, respectively.

UVA draws huge percentages from the Blackstone Group (25%) and Harris Williams (18.8%). Notably, the top three academic institutions (University of Pennsylvania, New York University & University of Western Ontario) received no recruitment and hiring efforts collectively from these two firms based on the WSO data.

The University of Michigan is favored by Duff & Phelps and Moelis at 9.7% and 8.2% respectively, while the University of Cambridge receives a strong showing from Greenhill, Duff & Phelps and PJT Partners at a respective 10.7%, 9.7% and 8.1%.

Columbia University attracts the most attention from Nomura (8.9%), Evercore (7.1%) and Macquaire (6.7%), while PJT Partners strongly favors Duke University at 13.5%. The University of California, Berkeley receives consistent numbers in the 1-5% range with the significant exception of the Blackstone Group at 25%. The London School of Economics receives its strongest showing from Nomura at 8.9% with Rothschild and HSBC in the top three but showing notably less interest at 5.2% and 4.5%.

Among other notable banks, the Blackstone Group put strong emphasis on only two academic institutions in the top 10 - UVA and the University of California, Berkeley. In contrast to the bulge bracket banks, only three other notable banks (Houlihan Lokey, Evercore and Moelis) showed at least some recruitment and employment interest from all top 10 universities.

Interestingly, 11 other notable banks avoided the top school, the University of Pennsylvania, while nine did the same for second-ranked NYU. No academic institution in the top 10 received recruitment and hiring attention from all notable banks included in the 2017 Investment Banking Report.


Percentage Change in Distribution Since 2016 Report

While the University of Pennsylvania and NYU rank in the top two target schools for other notable banks, both show a decrease in overall percentage since the 2016 report, of 4% and 19% respectively. This corresponds with the 2% and 18% respective decrease in bulge bracket banks for the two academic institutions.

Strong increases from PJT Partners and William Blair kept the University of Pennsylvania in the number one spot even with its 4% overall decrease. NYU's 19% overall decrease is due to consistent decreases or no change across the board. Notable increases from Piper Jaffray, Lincoln and KeyBanc kept NYU in the top two.

Key Takeaway #6: The London School of Economics showed the largest increase overall at 74% with Columbia University and University of Cambridge following at 34%.

The London School of Economics overall increase is due primarily to a significant increase from Nomura along with a large increase from HSBC. In addition to having no significant decreases, Columbia and University of Cambridge both received strong increases from Macquarie and Nomura.

Significant increases from Macquaire and RBC account for The University of Western Ontario's overall increase of 31% in addition to receiving little to no decreases across the board.

Other academic institutions showing increases in recruitment and hiring efforts from other notable banks include University of Cambridge (42%), Columbia University (32%) and the University of California, Berkeley (5%). Specifically, the University of Cambridge shows increases with Macquaire, Moelis and Houlihan Lokey. Columbia University had one large increase from Nomura, while the University of California, Berkeley saw a significant increase from Raymond James.

UVA's ranking remained the same despite significant increases from Greenhill, Blackstone Group and Jefferies. The University of Michigan showed an 18% overall decrease with slowed interest across the board from other notable banks.

Overall, Houlihan Lokey and Evercore showed increases in recruitment/hiring efforts at the greatest number of top 10 schools. Nomura showed the largest overall increase at the London School of Economics, while Macquaire rounded out the top three with increases at the University of Western Ontario and the University of Cambridge.


Ivy League vs State School IB Representation

It is important to note that while still in the top 10 academic institutions for recruitment and hiring from other notable banks, UVA remained steady and the University of Michigan showed an 18% decrease. The University of California, Berkeley showed a modest increase of 5% for other notable banks which is in stark contrast to its significant 33% decrease in recruitment and hiring efforts from bulge bracket banks.

Interestingly, the Blackstone Group put strong emphasis on only two academic institutions in the top 10, UVA and the University of California, Berkeley, both of which are state schools.

Key Takeaway #7: Of target schools outside the top 10, the University of Southern California (USC) showed a strong 49% increase, mostly due to increases from Raymond James and KeyBanc. The University of Minnesota - Twin Cities followed with a 34% increase, due to a large increase from Harris Williams.

Other semi-target schools showing striking increases include Texas Christian University (470%), New York State University at Binghamton (185%), the University of Waterloo (161%) and the University of Kentucky (149%). However, it's important to note these moves are based on small sample sizes and are subject to volatile fluctuations as a result.

Please visit the 2017 Investment Banking Report for the most current data as reports are continually updated online as more submissions come in on a daily basis. For more information, contact Wall Street Oasis at [email protected].




Footnotes:

(1) Each submission to the company database (interview insight, compensation data and/or company review) collects information on the employee and/or interviewee, including his/her undergraduate university. This data is used to build the University Statistics section of the Investment Banking Industry Report.

(2) PJT Partners, Inc. is a global advisory-focused investment bank, founded in October 2015 as part of The Blackstone Group's spin-off of its financial and strategic advisory services and fund placement businesses. Given this new entity, we expect the data to be somewhat volatile in early years surrounding Blackstone and PJT Partner statistics.


Graphics Disclosure: Background vector created by Brgfx - Freepik.com // Designs by Freepik // Icons made by Freepik from www.flaticon.com is licensed by CC 3.0 BY // Edited by Ajay Patel

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Comments (11)

Dec 12, 2017

Villanova?

    • 1
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7,548 questions across 469 investment banks. The WSO Investment Banking Interview Prep Course has everything you'll ever need to start your career on Wall Street. Technical, Behavioral and Networking Courses + 2 Bonus Modules. Learn more.

Dec 12, 2017

yeah, it's there: https://www.wallstreetoasis.com/investment-banking... ...you can control-F to find it easier

Dec 13, 2017

I really like the takeaways that you release every year. Is there a possibility to do something similar for Europe given that the reports are US oriented?

"The markets are always changing , and they are always the same."

    • 4
Dec 12, 2017

I'm interested in where you got the Georgia Tech and University of Sydney statistics from. Do Australians do alright in US recruiting?

Best Response
Dec 13, 2017

I wouldn't consider Wells Fargo a bulge bracket investment bank.

    • 9
    • 1
Dec 15, 2017
sleekerman:

I wouldn't consider Wells Fargo a bulge bracket investment bank.

And you would be incorrect. They have strong practices in multiple areas, produce closely followed research, have arguably the best retail distribution platform among any banks (especially helpful during certain equity issues), and use their balance sheet to great effect when structuring deals.

    • 2
Dec 16, 2017

retail

happy to give advice; no asking for referrals please

    • 2
Dec 15, 2017

MIT?

    • 1
Dec 15, 2017

Sample sizes might be too small, but is there any way to compare liberal arts colleges?

    • 2
Dec 16, 2017

.

    • 1
Dec 18, 2017

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