Demystifying Investment Banking Internships: The Truth Behind the 100 Hour Work Week
Investment banking internships are often viewed as the launch pad for a career on Wall Street. But what’s the real story behind these coveted positions? Do you really have to work 100 hour work weeks? We’ve gathered insights to give you a clear picture of what these internships truly entail.
The Basics:
- Top New York firms offer interns up to $120,000 annually (prorated)
- Typical weeks run 70-80 hours, sometimes exceeding 100 during busy periods (the 100 hour work week is not a myth but it is also fairly rare)
- Only the best performers receive full-time offers
A Day in the Life
9:00 AM: Hit the Ground Running Arrive at the office and tackle your inbox. You might prepare an internal market update or join a morning meeting on economic trends.
10:00 AM – 12:00 PM: Team Huddles and Initial Tasks Attend internal meetings and receive your first assignments. This could involve compiling a Public Information Book (PIB) with company reports and industry research.
1:00 PM – 5:00 PM: Core Work Period Work on various projects, from drafting pitchbook slides to developing financial models. You’ll likely attend sessions about different bank departments.
5:00 PM Onward: The Evening Shift As regular hours end, interns often buckle down for a long evening. Use this time to refine earlier work, continue ongoing projects, and prep for tomorrow.
8:00 PM: Desk Dinner Many banks offer a dinner allowance (around $25) for those working late – a common occurrence for interns.
10:00 PM – 1:00 AM: Burning the Midnight Oil Late nights are frequent. Interns often work past midnight to finish assignments and incorporate feedback from senior team members.
Essential Skills for Success
- Technical Know-How: Excel and PowerPoint proficiency is crucial. Understanding financial modeling and valuation is a big plus.
- Precision: In this environment, accuracy can make or break deals.
- Time Management: Juggling multiple projects with tight deadlines is par for the course.
- Clear Communication: Conveying information effectively to team members is vital.
- Flexibility: Each day brings new challenges. Being able to pivot quickly is key.
The Broader Perspective
Despite the demands, these internships offer unique exposure to finance. Interns gain hands-on experience:
- Creating pitch books for potential deals
- Conducting industry and company research
- Learning about various financial products
- Understanding major financial transactions
Building relationships within the firm is also crucial. It can lead to mentorship opportunities and potentially influence full-time hiring decisions.
Looking Forward
For those who excel in their internships, the payoff can be substantial. Top performers often receive offers for full-time analyst positions, complete with competitive salaries and bonus potential.
It’s important for prospective interns to consider whether this intense work environment aligns with their career goals. While challenging, these internships can build a strong foundation for a finance career, whether in investment banking or related fields.
Investment banking internships are as demanding (again, 100 hour work weeks are a real thing) as they are potentially rewarding. They offer a chance to gain real-world experience, build a professional network, and possibly secure a well-paying job straight out of college. However, they also require significant time commitment and impact work-life balance. For those passionate about finance and ready to put in the effort, these internships can be a valuable first step on a successful career path.
