Networking With Investment Bankers: Making The First Call

Networking is an essential part of the job search process in investment banking. It is about building relationships, gaining knowledge, and ultimately securing interviews and job offers. Networking is especially crucial for those who do not have a strong academic background or are from a non-target school. The process involves locating and contacting investment banking professionals, usually through cold emailing or cold calling, and conducting informational interviews to build connections. It is important to be prepared with thoughtful questions and to follow up persistently. The goal is to make a good impression and get referrals for internships or job opportunities.

How to make a good impression

Networking is a crucial step in securing your dream internship or job in investment banking. It is important to build disciplined relationships with bankers and make a good impression to stand out from the hundreds of thousands of applicants. Here are some tips to help you make a good impression when networking with investment bankers:

Be Prepared

Before reaching out to bankers, ensure you have done your research. This includes knowing their work experience and having thoughtful questions prepared. Asking thoughtful questions that show you have done your research will help you make a good impression. Avoid asking questions that can be easily answered with a simple "yes" or "no", or that can be easily found through a quick Google search.

Be Respectful and Charming

When speaking with bankers, be respectful and charming. This will help you make a positive impression and build a good relationship. Be mindful of their time and be polite and grateful for their time.

Be Vulnerable

While it may be tempting to try to impress bankers by bragging about your GPA, internships, or other achievements, it is often more effective to show vulnerability and ask for help. Bankers will appreciate your honesty and willingness to learn from them.

Follow Up

Networking is an ongoing process, and following up is crucial. Stay in touch with the bankers you connect with and politely persist until you get a response. Sending updates and checking in every few months can help keep you top of mind and show your dedication.

Be Proactive

When networking, be proactive and make direct requests. If you want something, ask for it! Bankers appreciate candidates who are clear about their goals and what they want. This will also help you stand out from other candidates.

Use the Right Channels

When reaching out to bankers, use the right channels. LinkedIn is great for finding people, but email is generally the best way to correspond. Avoid using LinkedIn messages, as they may get lost in the shuffle.

Keep Emails Concise

When emailing bankers, keep your messages concise and to the point. A lengthy email may be ignored, so use email templates to ensure your message is clear and direct. Focus on asking specific questions or making a direct request.

By following these tips, you can make a good impression when networking with investment bankers and increase your chances of securing your desired internship or job. Remember, networking is a powerful tool that can help open doors and build valuable relationships.

How to ask thoughtful questions

Networking with investment bankers is a great way to show a strong interest in the position and company. It is also an opportunity to learn more about the cultural aspects that will determine your preferred employers. Asking thoughtful questions during these networking calls will help you stand out among other candidates and increase your chances of securing a referral for an interview. Here are some tips on how to ask thoughtful questions:

Do Your Research

Before the call, make sure you research the banker and their bank. This will allow you to ask targeted questions that show you have done your homework. Find out information such as their career path, the projects they are working on, and the bank's culture.

Prepare Open-Ended Questions

Avoid asking questions that can be answered with a simple "yes" or "no". Open-ended questions encourage the banker to elaborate and share more insights. For example, instead of asking "Do you enjoy working in investment banking?", try asking "What do you enjoy most about working in investment banking?".

Focus on the Banker

The best networking questions are those that focus on the other person. Ask questions about their career path, their motivations, and their experiences. For example: "What brought you to this industry?" or "What has been the most rewarding aspect of your career so far?". People love talking about themselves, and this will help you build a stronger connection.

Avoid Awkward Topics

Steer clear of controversial or sensitive topics such as money, politics, or personal beliefs. Stick to questions about the industry, their career, and their experiences.

Show Your Interest

Ask questions that demonstrate your interest in the industry and your desire to learn. For example: "What do you think are the biggest challenges facing the investment banking industry today?" or "What skills do you think are essential for success in this field?". This shows that you are engaged and curious.

Tailor Your Questions

While it is important to prepare some questions in advance, be flexible and tailor your questions based on the conversation. As you listen to the banker, you may find opportunities to ask follow-up questions or explore a particular topic further. This shows that you are genuinely interested and engaged in the conversation.

Ask for Advice

People generally enjoy sharing their knowledge and expertise. Asking for advice is a great way to flatter the banker and make them feel valued. For example: "What advice would you give to someone starting out in investment banking?" or "What do you wish you had known when you were starting out in this industry?".

Be Mindful of Time

Investment bankers are usually very busy, so be mindful of their time. Keep your questions concise and to the point. If the banker offers to extend the call or seems happy to continue the conversation, you can certainly ask a few more questions. Otherwise, respect their time and keep the call focused and efficient.

By following these tips, you will be well on your way to asking thoughtful questions during your networking calls with investment bankers. Remember, the key is to show your interest, demonstrate your knowledge, and build a genuine connection.

How to follow up

Following up is a crucial part of networking with investment bankers. Here are some tips on how to effectively follow up after making initial contact:

• Timing: It is recommended to wait a few hours after the phone call before sending a follow-up email or LinkedIn message. This allows the banker to remember you throughout the day, rather than just immediately after the call.
• Email Content: In your follow-up email, express your gratitude for their time and mention specific topics or details you discussed. This shows that you were engaged in the conversation. Additionally, you can ask to be referred to another analyst in the group to continue the conversation and expand your network.
• Connecting on LinkedIn: While some suggest waiting until the second phone conversation to connect on LinkedIn, others advise doing so after the first chat. It is generally recommended to wait until you have established a stronger connection.
• Long-Term Follow-Up: To stay in touch with your contacts and maintain the relationship, reach out every 1-3 months with updates on your progress, new experiences, or questions. This keeps you on their radar and demonstrates your continued interest in the field.
• Persistence: Bankers are busy people, and they may not respond to your initial attempts to connect. It is important to be politely persistent and follow up multiple times if needed.

How to use cold calling effectively

Cold calling is a last resort strategy for networking with investment bankers. It is an uncomfortable process that involves interrupting bankers at work, and it is best to use other networking strategies if possible. However, if you are an undergraduate or recent graduate with limited or no work experience, cold calling can be an effective way to find an internship at a small, local firm. Here are some tips on how to use cold calling effectively:

• Find the names of firms in your area and the phone numbers of bankers. Paid databases such as Capital IQ are best, but simple Google searches or Google Maps can also work.
• Prepare your pitch and be ready to respond to objections. Your pitch should be very short (1-2 sentences) and include your major, university, and any relevant work experience. Be prepared to answer common objections such as "We're not hiring" or "We don't offer internships."
• Place your calls and be persistent. It is important to follow up if you don't reach a banker or don't get a response. Try calling at different times of day and on different days, as you may get different results.
• Go through "mini-interviews" with the bankers you reach, and follow up again. These interviews will be similar to standard investment banking interviews but with lower technical expectations. Be prepared to answer questions about how your previous experience is relevant to investment banking and what you know about the industry.
• Be mindful of the time of day and day of the week when making calls. The best time to call is usually between 4-5 pm, and the best days are Thursdays and Fridays.
• Be concise and avoid using subjective terms or making vague statements. For example, instead of saying "I'm hardworking," provide an objective example such as "I achieved an X GPA."
• Be polite and respectful of the banker's time. If you sense that the banker is busy or uninterested, thank them for their time and end the call. You can also ask if there is a better time to call back.
• Remember that cold calling is a numbers game. You may need to make dozens of calls before you get a positive response, especially in larger cities with more firms. Don't get discouraged, and keep trying!

How to network if you are a career changer

Networking is a crucial aspect of landing a job in investment banking, and it becomes even more important if you are a career changer. Here are some tips on how to network effectively to make the transition into investment banking:

• Understand the industry: Before you start networking, ensure you have a solid understanding of the investment banking industry, including the different roles and responsibilities, recent trends, and developments. This knowledge will help you ask thoughtful questions and demonstrate your interest in the field.
• Create a list of bankers to contact: Make a comprehensive list of 200-300 bankers you want to connect with. Cast a wide net, especially if you are from a non-target school. You can find bankers through LinkedIn or your alumni network.
• Get contact information: Once you have your list, find the bankers' email addresses or reach out to them via LinkedIn. Since bankers receive many networking requests, make sure your initial outreach is compelling and makes them want to respond.
• Send a professional and concise email: Your email should have a catchy subject line and concise content. Ask the banker for a moment of their time for a phone call or in-person meeting. Suggest a few times that work for you to make it easy for them to respond.
• Prepare for the conversation: If you receive a positive response, research the banker and the bank they work for. Prepare thoughtful questions targeted towards them and the bank to help you stand out and get referrals.
• Follow up: After your initial conversation, follow up to maintain the connection. Send updates about your job search or relevant experiences you've had. Eventually, make your "real ask," such as passing along your resume or asking them to plug you into their firm's recruiting process.
• Utilize different networking strategies: There are three main networking strategies: informational interviews, cold emailing, and cold calling. Informational interviews involve building connections with bankers over time, while cold emailing and cold calling are more direct approaches to ask about open positions. Choose the strategy that best suits your situation and goals.
• Join professional organizations: Consider joining organizations related to investment banking, such as industry associations or alumni groups. These organizations often host networking events and provide opportunities to meet industry leaders and learn about the latest trends.
• Offer your expertise: Remember that networking is a two-way street. While you are seeking job opportunities, be willing to offer your own expertise and assistance to others in the industry. This will help you build valuable relationships and establish yourself as a valuable asset.
• Start early: Investment banks often start recruiting early. If you are transitioning into investment banking, it's essential to start networking and preparing for the role as early as possible, ideally 6-12 months before the hiring season.

Frequently asked questions