Complete Guide
Finance Career Guide
Investment banking, private equity, hedge funds, understand the paths, compensation, and what it actually takes to break in.
The Major Finance Career Paths
Investment Banking
Advise companies on M&A, debt, and equity transactions
Pros
- +Deal experience
- +Exit optionality
- +Technical skills
Cons
- -Brutal hours
- -Junior work can be tedious
- -High burnout
Private Equity
Acquire and improve companies using leverage
Pros
- +Ownership mindset
- +Better hours than IB
- +High comp
Cons
- -Competitive entry
- -Long fundraising cycles
- -Limited seats
Hedge Funds
Generate alpha through various investment strategies
Pros
- +Investment focus
- +P&L ownership
- +Uncapped upside
Cons
- -High pressure
- -Performance-based job security
- -Competitive
Equity Research
Analyze public companies and publish investment recommendations
Pros
- +Investment focus
- +External profile
- +Better hours than IB
Cons
- -MiFID impact
- -Less comp than IB
- -Industry shrinking
2026 Compensation Guide
These are approximate figures for top-tier firms. Compensation varies by firm, group, and year.
| Role | Base | Bonus | Total |
|---|---|---|---|
| IB Analyst 1 | $110K | $90-140K | $200-250K |
| IB Analyst 2 | $125K | $100-170K | $225-295K |
| IB Associate 1 | $175K | $100-200K | $275-375K |
| PE Associate 1 | $175K | $125-200K+ | $300-375K+ |
| HF Analyst | $150-250K | $200K-$1M+ | Varies wildly |
The Finance Recruiting Timeline
Finance recruiting happens earlier than any other industry. Here's the roadmap.
Freshman
Explore finance, get good grades, join finance clubs
Sophomore
Land a sophomore internship, start networking, learn modeling
Junior
SA internship (this is THE recruiting cycle), convert to FT
Senior
Either you have an offer or you're lateral recruiting
Analyst 1-2
Learn the job, build skills, start thinking about exits
Exit
PE/HF recruiting typically happens in year 1-2 of banking
Skills You Need
Financial Modeling
3-statement models, DCF, LBO, merger models
Accounting
Deep understanding of financial statements and how they link
Valuation
Trading comps, transaction comps, DCF, LBO-based valuations
Excel/PPT
Speed and proficiency are table stakes, you must be fast
Communication
Client-facing work requires clear written and verbal skills
Work Ethic
The ability to grind through 100-hour weeks when needed
Pick a Path and Go Deep
Pick a path and go deep. Our playbooks give you the specific frameworks and templates to break in.
Career Decision Resources
If you are still deciding what to target, these guides go deeper on path choice and execution.
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