Investment Banking Career with an MBA – Cities and Country (Part 3)

Choosing an MBA program is primarily driven by the Economy of the host country. And the US continues to be a preferred destination for international and local candidates for a career in Investment Banking. 

Before I go into the value of a city and the choice of Business School, internalize the best practices about Internship (for a career in Investment Banking) (Part 2) and an introduction to different types of investment banking firms (Part 1) (if you are new to the industry). 

American Business Schools vs the Rest of the World

The debate on whether US schools are enough for a career in Investment Banking should be put to rest by now. You will hear about London, Singapore, Frankfurt, and other metropolises rising through the shadows to overtake American cities for an IB career. 

The reality is this – even for a PPP converted salary (that is taking into consideration the purchasing power of Euro and Pounds), top European MBA programs are $50,000 to $60,000 behind and top UK-based MBA programs are $40,000 to $50,000 behind US school’s total salary. 

The gap should end the conversation about alternatives to US schools for a career in Investment Banking. 

Top Investment Banking Firms: New York Vs. Chicago Vs. Texas

Then, the conversations shift to the cities in the US. 

New York is a clear winner, followed by Chicago and let us for simplicity club Dallas and Houston as Texas. 

As the financial capital of the world and with the dominance of Goldman Sachs, JPMorgan Chase, and Morgan Stanley, New York also boasts of the presence of market leaders in the middle market and boutique banking categories. 

The diversity of the market leaders in one city makes New York-based MBA programs the primary target for Investment Banking career enhancers and career switchers. 

This should be your #1 strategy. 

Pick New York based MBA programs (Top 3).  

Tier-2 MBA programs in New York if you still desperately want to get into investment banking. 

For Tier-2 MBA programs, you must prepare for the pain. 

What is the Pain?

The pain is that despite your strong technical skills and pre-MBA career growth or grades or socializing skills, you will still be considered a tier-2 candidate. 

Now – what is so harmful about Tier-2 MBA candidates pursuing ambitious goals?

Well – the Tier-2 MBA candidates are judged mostly by VP’s and MD’s of Investment Banking firms who all have spent $200,000 plus and earned their MBA from M7 or T15 MBA programs. 

They don’t want to give away the lottery ticket so easily. So you have to interview 3 to 5 times when your friends from NYU Stern or Booth or Columbia or Cornell get the internship with a few standard meetings. 
And this is the stage where most feel the heartbreak and regret about not applying again with better branding and target top Investment Banking Schools. 

Beyond New York – Chicago

Chicago houses a mix of Bulge Bracket banks like JPMorgan and Goldman Sachs, alongside Middle Market players such as Wells Fargo and Madison Street Capital.  

The distribution is around the Bulge Bracket (30%), Middle Market (20%) and Boutique (50%).  

Interestingly, the presence of prominent bulge bracket banks is similar to New York.

The Chicago advantage is clearly won by candidates from the Booth School of Business.  

If you are willing to weather the cold, targeting schools in Chicago and the mid-west should be one way to overcome DINGs in New York based top 3 MBA programs. 

Final Attempt at Investment Banking - Texas

Texas is not traditionally known for housing the headquarters of Bulge Bracket investment banks. The Oil money is slowly fading away into healthcare, space technology and alternative energy funds. The deals are also around these three industries. 

If you are willing to compromise and abandon your goal of working for a Bulge-bracket bank, Houston or Dallas showcases a notable presence of Boutique firms like HFF, Generational Group, and Alden Advisors.
The distribution is around Bulge Bracket (5%), Middle Market (20%) and Boutique (75%). 

To summarize:

1) Leaders in Investment Banking Firms: New York 
2) Diversity in Investment Banking Firms: New York
3) Middle Market Investment Banking Firms: Chicago ~ New York
4) Boutique Investment Banking Firms: Texas > Chicago > New York

Here are a few of our selected list of Investment Banking firms categorized by Cities/State (below). 

Before you go and skim through the firm names below, don’t forget to Purchase F1GMAT’s Winning MBA Essay Guide (The essays of all your favorite IB schools in one book) from our Store or Essay Guides of Strong IB Schools (Columbia, Stern, Booth, Cornell, Duke Fuqua)

Bulge Bracket vs. Middle Market vs. Boutique Investment Banks – Comparison (New York Vs Chicago Vs Texas)