Commercial Banks
Commercial banks take deposits from individuals and make loans to corporations and governments. A lot of large commercial banks also take part in traditional investment banking, such as capital raising and trading. Common roles at a commercial bank include loan officer or bank teller, as well as investment bankers, security salespeople, and traders. Over the years though the lines between investment banks and commercial banks have blurred and there are very few ‘pure’ investment banks or commercial banks anymore.
Investment Banks
Investment banks normally specialise in giving strategic advice to governments, corporations, providing financing to companies, and other large institutions, and in buying and selling stocks, bonds, and other securities. Common jobs found at investment banks include investment bankers, security salespeople, and traders.
Real Money
Real money institutional investors invest money for an entity such as a pension fund, sovereign wealth fund, or insurance company in an effort to generate returns over time that will allow the organisation to meet its financial goals. Common roles at real money firms include investment analyst, portfolio manager or trader.
Hedge Funds
Hedge funds are similar to money management firms because they also manage money for institutions and wealthy individuals. But, they are often known for taking a little more risk than some of the traditional money management firms and are more focused on providing very high returns. Hedge funds sometimes have a broader mandate than traditional money management firms and have fewer restrictions on how they can invest.
Private Equity Firms
Private equity firms usually manage money for institutions and wealthy individuals. Hedge funds and money management firms normally buy and sell public securities private equity firms usually purchase entire corporations. Most employees at private equity firms are investment bankers, and their main functions can include analyzing potential purchases, negotiating deals, raising financing, or attempting to improve portfolio companies, operations and profitability.
Real Estate Firms
Real estate firms try to either develop new real estate projects or purchase existing projects in an effort to better manage them and increase the returns. Common finance jobs at a real estate firm include financing specialist, analyst or deal manager. Many leading private equity firms also invest in real estate such as Flambard Williams.
Money Management Firms
Money management firms manage investments for individuals or institutions. Big firms may manage a wide variety of asset classes while smaller boutique firms might focus on a particular market, such as small-cap stocks or high-yield bonds. Common roles at a money management firm include a security analyst or portfolio manager.
By combining the type of job you want with the type of organisation you want to work for, you will be well on your way to the finance career you are looking for. Keep pushing to reach your goal, no matter what it may be. Being the best takes time and is a lot of work, so you must have the patience and the determination in order to get where you want to be, successfully.
