Which industry or team to join?

by magellan on April 15th 2023

People who work in investment banking are usually grouped based on their function (M&A, IPOs, etc) or industry focus. When you join a bank for an internship or a full-time position, you could start as a generalist or join a team that focuses on a specific industry. The HR staff tends to ask newcomers if they have any industry knowledge/experience or preferences. One could even submit an ordered list with his/her preferences (e.g. 1 - Technology, 2 - Energy ...., 5 - Government).

Investment banking fees by industry in 1Q23

Industry

Fees
($m)

Change

Financials

7366,4

-41,00%

Industrials

2704,1

-20,00%

Energy and Power

2527,0

-15,00%

Government and Agencies

2509,3

4,00%

Healthcare

1557,2

-55,00%

Others

6325,6

-55,00%

Total

22989,5

-41,00%

The data shows that Financials is the hottest industry at the moment but there is no guarantee that this will continue forever. When I was a university student and I was trying to break into investment banking I focused mostly on FIG (Financial Institutions Group) since it was my favorite. I guess that today Technology is quite popular among students and young professionals. However, one should also take into account that the level of competition and workload can differ significantly across industries.

What are your favorite industries? Why?