What does an investment banking associate do?

An investment banking associate is the second rung of the deal team, one step above the analystWhat does an investment banking analyst do?An investment banking analyst builds the models and presentation pages behind every deal, works long weeks, and usually moves on after two or three years.Jobs and ranks · revised 28 September 2026 · 835 words · 5 sources · 4 min, and manages the day-to-day details of a project: checking the analysts’ work, building the harder models, and taking charge of the presentations. Associates are usually hired from business school or promoted from the analyst class, and after roughly three and a half to five years the good ones become vice presidents.

What the work is

The textbook description is that associates “manage the day-to-day details of most banking projects and have the principal responsibility to create presentations”. They check all of the analysts’ work, including the financial modelling, and run some of the more complicated models themselves; there is frequent client contact, and on smaller deals an associate may execute the transaction and speak to the client directly[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.]. Beyond deal work they train analysts and help recruit the next class[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.]. Another guide draws the line between the two junior ranks this way: analysts do the mechanics of the models, associates do the more complex modelling, draft the pitch material and manage some of the process[2Source 2Michael E. S. Frankel and Larry H. Forman, Mergers and Acquisitions Basics: The Key Steps of Acquisitions, Divestitures, and Investments, 2nd ed. (Wiley, 2017), “Advisor Staff”, pp. 45–46.].

The ethnographic account adds the part the textbooks leave out. The associate shares the number-crunching but is the link between the analyst and the vice president: the associate supervises the analyst’s work and makes the numbers “tell a story”, meaning the calculations are shaped into an argument for whatever strategy or deal the bank is proposing. The associate then takes the analysis up to the vice president for comments, makes the revisions, and sends the final draft to be turned into a polished pitch bookWhat is a pitch book?A pitch book is the presentation an investment bank prepares to win a mandate: its ideas for the client, a valuation, the team and its record. Who builds it.Words of the trade · revised 28 September 2026 · 843 words · 9 sources · 4 min[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2, “The White-Collar Sweatshop”, pp. 85–87.]. First-year associates, like analysts, are in a support role and do not normally speak in client meetings[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2, “The White-Collar Sweatshop”, pp. 85–87.].

How you get in

Business school graduates are the principal candidates, though an increasing number of third-year analysts are promoted into the role, and some firms also take law graduates and people from other industries[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.]. For business-school candidates the textbook recommends analytical, negotiation and teamwork skills, a broad set of finance classes, and evidence of leadership outside the classroom[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.]. Many banks run a ten-week summer programme for students midway through business school, put them onto live transactions, and hire much of the full-time associate class from it[4Source 4K. Thomas Liaw, The Business of Investment Banking: A Comprehensive Overview, 3rd ed. (Wiley, 2011), “Investment Banking Financial Analysts”, pp. 52–53.].

The hours

Associates work nearly as much as analysts: 70 to 100 hours a week on average, with some difference by city and by the size of the firm[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.]. The back-and-forth with senior bankers is a large part of the reason. One associate explained that even on a light day he stayed until ten at night because the managing directors did not return their comments until six or seven, when some of them went home[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2, “The White-Collar Sweatshop”, pp. 85–87.]. The article on hoursWhy do investment bankers work such long hours?Junior bankers work 80 to 100 hours a week because deals run on deadlines, several at once, and senior comments arrive late. The mechanics, from the sources.Words of the trade · revised 28 September 2026 · 900 words · 9 sources · 4 min goes through the pattern.

What comes next

Associates are generally promoted to vice president after three and a half to five years, depending on the firm[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.]. The textbook’s description of the associate programme is a three-and-a-half-year exposure to transactions across industries, products and regions, meant to prepare the associate for senior deal management as a vice president or executive director[4Source 4K. Thomas Liaw, The Business of Investment Banking: A Comprehensive Overview, 3rd ed. (Wiley, 2011), “Investment Banking Financial Analysts”, pp. 52–53.]. The ethnography puts it at three years or so for those who stay in the business, depending on many factors[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2, “The White-Collar Sweatshop”, pp. 85–87.].

Frequently asked questions

Do you need an MBA to become an investment banking associate?

Not always. Business school graduates are the main source, but third-year analysts are increasingly promoted directly, and firms occasionally hire law graduates or professionals from other fields into the role[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.].

What is the difference between an associate and a vice president?

The associate manages the details and the presentations of a deal; the vice presidentWhat does a vice president in investment banking do?A vice president in investment banking runs deals day to day, manages the associates and analysts on them, and is the client’s main line to the team.Jobs and ranks · revised 28 September 2026 · 651 words · 4 sources · 3 min runs the deal itself, supervises the associates and analysts on it, and is a principal line of communication with the client[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.].

How long does it take to be promoted from associate?

The textbook gives three and a half to five years from associate to vice president, depending on the firm; the ethnography puts it at three years or so for those who stay in the business[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the positions, p. 223; associates, p. 224.][3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2, “The White-Collar Sweatshop”, pp. 85–87.].

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  author       = {{xlsx.dev}},
  title        = {{What does an investment banking associate do?}},
  howpublished = {xlsx.dev Wiki},
  year         = {2026},
  month        = sep,
  url          = {https://xlsx.dev/wiki/investment-banking-associate}
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