Finance Career Paths

In the traditional finance world (excludes quantitative finance) there are a lot of career paths available. I have tried to cover the basic paths however you should know that people with finance backgrounds have ended up in all different types of jobs.

Understanding what is required to get to specific careers is important as some paths require different degrees and experiences. These increase the costs associated with these paths and should be considered when reviewing compensation and job responsibilities.

1) Private Equity (Usually investment banking experience is required)
2) Hedge Fund (Usually investment banking experience is required)
3) Investment Banking (Undergrad required)
4) Wealth Management (Undergrad required)
5) Corporate Finance (Undergrad required)
6) Technology Jobs (Non-coding jobs and undergrad required)
7) Consulting (Undergrad required)
8) Business Development/Sales (Undergrad required)
9) If you work hard you could end up in more quantitative jobs such as operational research but usually more quantitative course work or experience is required.

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[JurassicJolts]

this video seemed unbiased. I also greatly enjoy that you didn't try to sell me anything.

[gilgameshbaratheon]

Finally a finance youtube channel that I can appreciate <3

[JosueRealty]

Thank you for clearing this up. My brother works in wealth management. He makes his 80-90k and still has a life outside of work, and I think that’s what I’d like to pursue as I finish my finance degree as well.

[mastersupernova]

Important Correction:

Analysts do not go on to get an MBA in order to become an IB associate and then move to a PE/HF role. Rather, they will move directly as an analyst to either a PE associate or IB associate position. There is no reason why an analyst would get an MBA to become an IB associate when they can be promoted internally without one. People in finance who were unable/chose not to do banking directly out of undergrad will have to get an MBA and then become an IB associate. However, post-MBA associates are generally expected to stay at the bank for the long run and will face much more difficulty moving to a PE/HF role as those firms do not generally recruit IB associates.

[lokalkakan]

About the "elite" part,

Another way to rethink the issue is the value they look for. In Europe engineers from prestigious colleges and with prestigious degrees can be scouted.

The value they look for is an overachieving mindset coupled with the best markers for learning a lot fast.

[kpdenigma]

Thank you so much for the informative video! I graduate in two semesters with finance and am still on the fence about what route I have wanted to undertake - this helped significantly. Take care and look forward to future videos.

[Roclaph]

MBA/ IB Associate are not necessarily needed anymore to jump to PE (2 years as analyst is sufficient)

[bluedaffodil]

This is the first description of investment banking I heard that made sense!

[cameronkinsey]

How can anyone dislike this video? Dimitri, you have earned yourself a new sub! Keep up the good work!

[kishanpatel]

Thank you for breaking it down in such a simple manner, means a lot

[bothoseretse]

I watched this video first time being here, man and I love it. Thanks for the wisdom again.

[Xez]

What career advice do you have for someone who:

- graduated in economics from a target university
- values a great work-life balance
- seeks to manage own fund and/or business in the long-term (not endowed with the required capital)
- secured a rotational finance graduate program in a f500 (m&a, trading, controlling, etc.)

- Proceed with the f500 finance graduate program? Stay in an f500 or switch to IB?
- get a CFA/ CAIA?
- What roles allow to generate the required capital the fastest, while still maintaining a work load below 60h/week?
-- IB?
-- hedge fund?
-- asset management?
-- energy/ commodities trading?

I know this is pretty random, but I just try my luck :-) any oponion is appreciated.

[andrewbathija]

Hey Dimitri! I’m a 16 year old high school student looking to plan out my future. I am highly motivated by money and that’s why I am so interested in the world of finance. First of all, thank you very much for this video. It really helped me understand a typical finance career path. I’m going into my junior year, and I feel like I have a great shot at getting into those “target schools” you mentioned. The dream is Penn (Wharton), but if not, then definitely NYU (Stern) or Columbia. I was wondering what you think about this career path for myself:
June 2020 - Graduate High School
May 2021 - Complete Freshmen Year of College
May 2022 - Complete Sophomore Year of College
May 2023 - Complete Junior Year of College
Summer 2023 - Internship at Investment Bank
May 2024 - Graduate College with BBA
May 2024 - Apply for Job as Investment Bank Analyst
August 2026 - Leave Job as Investment Bank Analyst
August 2026 - Begin MBA Program
May 2027 - Complete first year of MBA Program
May 2028 - Graduate with MBA
May 2028 - Apply for Job as Investment Bank Associate
May 2030 - Leave Job as Investment Bank Associate
May 2030 - Apply for Job as Hedge Fund Analyst
Sounds typical to me. Just want to earn a lot of money with the skills I have. Your opinion would be highly appreciated, along with any suggestions along the way. Thanks so much!

[BarrettTableTennis]

missed pension, e&f's, family office (asset owners). wish you touched more on the CFA route

[Roclaph]

Also, PE/HF analysts do make loads more than the base numbers you/the report states. those numbers are deflated greatly by non-top programs, and you are talking about the top programs.

[tylerbrooks]

Awesome video, really appreciate your effort!

[andreipopescu]

Hey Dimitri, I love your videos, very condensed and informative. Can you comment please on science -> finance route, like going with PhD in Theoretical Physics to HF or AM firms. Is that possible to do just straight after graduation or an additional statistics/finance degree is necessary? Are there any benefits of having a PhD in a unrelated field (like theoretical physics) in quant finance?

[nanayaa]

Hi, this might seem like a silly question but I’m new to this so bear with me. How does the consulting mentioned in this video ( which I’m assumais financial consulting) differ from management consulting?

[justStardust]

great video! I wish i had found it sooner! you described everything in a friendly, understandable, and honest ways with great heads up!

[jules]

Hey Dimitri - great vids! What advice would you give somebody who didn’t choose a major that is applicable to the finance industry in his undergrad, but is highly interested in a finance career? Is a Masters in Finance enough to get a foot in the door? Or is a successful change unrealistic?