Why Networking Matters in Investment Banking Recruiting
Investment banking recruiting is one of the most competitive processes in finance. Hundreds of students apply for only a handful of roles, and networking often determines who gets the interview. While strong grades and technical skills are important, personal connections are often the difference-maker.
Networking helps you:
- Build relationships with bankers who can vouch for you.
- Gain insights about specific firms and groups.
- Learn about recruiting timelines and hidden opportunities.
- Demonstrate initiative and communication skills.
The reality is simple: bankers recommend people they know and like. If you’re only relying on online applications, you’re putting yourself at a disadvantage.
The Networking Mindset
Before diving into strategies, it’s important to have the right mindset:
- Long-term view: Think of networking as relationship building, not just asking for a job.
- Professional curiosity: Show genuine interest in the banker’s experience.
- Respect for time: Bankers are busy—your job is to make interactions efficient and meaningful.
- Persistence without pushiness: Follow up politely but don’t badger.
Networking isn’t about sending one perfect message—it’s about sustained, thoughtful engagement.
Where to Start: Building a Target List
Begin by mapping out potential contacts. Sources include:
- LinkedIn searches: Use filters for firm, group, school, and location. LinkedIn is the default starting point for most candidates today.
- Alumni databases: Your university’s career center often maintains lists of alumni in finance.
- Career fairs and information sessions: Effective for initial contact and warmer introductions.
- Student clubs: Finance or investment banking clubs often maintain contact lists.
- Friends and family: Don’t underestimate personal networks.
Prioritize people with whom you have the strongest connection (shared school, geography, background). Then work outward.
Crafting Effective LinkedIn Outreach
LinkedIn has become the primary networking platform in finance. A concise, respectful connection request can open doors.
Key Elements
1. Connection note: Always add a message when connecting. 2. Personal connection: Mention shared background (school, city, or interest). 3. Purpose: Request a brief call to learn about their experience. 4. Politeness: Keep the tone humble and professional.
Example structure:
> Hi [Name], I’m a [year] student at [school] interested in investment banking. I noticed you also attended [school] and are now at [firm/group]. I’d love to connect and, if you’re open to it, learn about your experience in the industry.
When to Use Email Instead
If you can’t find someone on LinkedIn, or if they don’t accept your request after a week, email is a strong alternative. Use similar wording but keep it concise and professional.
Mastering Informational Calls
If your outreach works, you’ll be invited to a call. This is your chance to make a positive impression.
Preparation
- Research the banker’s background, firm, and recent deals.
- Prepare thoughtful questions (but avoid those you could answer via Google).
- Be ready to introduce yourself in 30 seconds: school, background, interest in IB.
During the Call
- Keep it professional yet conversational.
- Ask about their path to banking, what they enjoy, challenges they face, and group culture.
- Share your interest in IB without asking directly for a job.
- Be respectful of time—if you asked for 15 minutes, don’t go past 20 unless they extend.
After the Call
- Send a thank-you message on LinkedIn or email within 24 hours.
- Highlight one or two key takeaways from the conversation.
- Express interest in staying in touch.
Building Relationships Over Time
One call is just the beginning. To maintain connections:
- Follow up periodically: Send a LinkedIn message every few months with an update (internship news, class project, relevant article).
- Be authentic: Don’t force updates; share real progress.
- Engage with content: Like or comment on their posts if they share relevant industry insights.
- Reconnect before deadlines: Reach out in advance of recruiting cycles to remind bankers of your interest.
The best candidates create a small group of advocates who actively push their resume during recruiting.
Converting Networking into Interviews
At some point, you’ll want your contacts to recommend you. The key is to earn the referral:
- Demonstrate interest consistently.
- Be knowledgeable and well-prepared in conversations.
- Show professionalism in every interaction.
As recruiting season nears, you can signal interest more directly:
- “I plan to apply for [firm’s] investment banking internship this summer. If possible, I would be grateful if you could recommend me to the recruiting team.”
Most bankers will help if they’ve built a positive impression of you.
Common Mistakes to Avoid
1. Being transactional: Don’t immediately ask for referrals or jobs.
2. Generic outreach: Avoid copy-paste LinkedIn notes without personalization.
3. Overwhelming contacts: Too many follow-ups too quickly can backfire.
4. Unprepared calls: Asking basic questions wastes the banker’s time.
5. Neglecting thank-yous: Skipping follow-ups signals lack of professionalism.
Advanced Tips for Effective Networking
- Target Analysts and Associates first: They’re more approachable than MDs and often more involved in recruiting.
- Use LinkedIn analytics: See who’s viewed your profile and connect strategically.
- Track your efforts: Keep a spreadsheet of contacts, last touchpoints, and notes.
- Practice your story: You’ll need a polished “walk me through your resume” even for networking calls.
- Quality over quantity: Ten strong advocates are better than fifty weak contacts.
Special Considerations
For Non-Target School Candidates
Networking is even more critical if you come from a non-target school. Use LinkedIn alumni filters aggressively, and try to attend firm presentations at nearby target schools if possible.
For Lateral Recruiting
If you’re switching from another industry, emphasize transferable skills and use networking to explain your pivot story. Conversations can help overcome resume gaps.
Interview Perspective
Interviewers may ask: “How did you prepare for recruiting?” A strong answer mentions LinkedIn networking:
- “I reached out to alumni from my school through LinkedIn, had 20 informational calls, and learned about different firms’ cultures. It helped me refine my story and confirm my interest in investment banking.”
This shows initiative and preparation.
Key Takeaways
- Networking is essential to breaking into investment banking—grades and technicals alone are not enough.
- LinkedIn is the default outreach platform, though email remains a useful backup.
- Use calls to learn, not just to ask for referrals.
- Follow up thoughtfully and maintain relationships over time.
- Focus on quality connections that can convert into real advocacy.
Conclusion
Networking is both art and science. It’s about building trust, demonstrating interest, and positioning yourself as a strong candidate. While the process can feel daunting, approaching it strategically—targeting the right people, sending effective LinkedIn outreach, and maintaining relationships—can dramatically improve your chances of landing interviews.
Remember: every successful banker once sat where you are now. Many are willing to help if you reach out thoughtfully. By mastering LinkedIn networking, you’ll not only improve your odds in recruiting but also develop professional skills that will serve you well throughout your career.
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