The Banking Race
Inside the high-pressure world of investment banking recruiting at U-M
—By Max Garmisa
At the University of Michigan and campuses around the country, a quiet but relentless competition brews each year, pulling students into a recruiting process so intense that even sophomores without a declared major find themselves in a high-stakes race for summer internships. It starts harmlessly enough, with an email from a friend or an invitation to a firm event, but quickly spirals into a dizzying mix of coffee chats, networking calls, and study guides filled with endless technical questions. Some see it as an unavoidable initiation into the world of finance, while others wonder if they’re simply too young to be pressed into figuring out “their story” before they even know who they are.
Ben Cohen, vice president of the TAMID Group, an investment club at U-M, calls it a rite of passage. Coby Brown, the Director of Fund at TAMID and director of the Undergraduate Investment Conference at Michigan Interactive Investments, describes the grueling process as a necessary trial for those set on Wall Street. But for Chase Pastolove and Jesse Katz—two students deep in the throes of recruiting this year—the stakes feel incredibly high and the learning curve, painfully steep. As investment banks court students earlier and earlier; the pressure is on them to get it right, right now.
The high stakes world of investment banking
Investment Banking is a sector of the financial industry that specializes in helping organizations raise capital (money) and providing advisory services for mergers and acquisitions. Investment banks act as the “middleman” of financial transactions, often helping one of the sides evaluate and then negotiate a deal. Typically, the draw toward investment banking, even though it may entail 80-hour weeks, lies in the high compensation, prestige, and the opportunity to work on significant financial deals.
There is a lot of competition for these prestigious jobs. In 2022, Goldman Sachs received about 236,000 applications for 3,000 internships, with a 1.27% acceptance rate. In the same way, JPMorgan reported it received 50,000 applications for 400 investment banking jobs, with a 0.8% acceptance rate. Furthermore, a report done by Trackr revealed that there was 1 internship given out for every 68 applications.
Behind the scenes of recruiting
Even though investment banks offer internships for the summer after junior year, the recruiting process begins early sophomore year, forcing even ambitious freshmen to start thinking about it. Students must attend many networking events, which provide them with the chance to meet potential employers. Most banks will come to campus and do a presentation. After a slideshow that lasts around 20 minutes, students have the opportunity to speak with analysts in break-out groups. However, networking isn’t just a one-off event; it’s something recruits need to do every day almost every day.
As a sophomore going through the hiring process, Pastolove says that he spends time each day reaching out to alumni and professionals in the field. He explained, “I try to set up at least one networking call a day. It’s hard though because it feels like almost every email I send gets no response.”
Networking is about getting to know people, leaving a good impression, and making connections that can hopefully last. Students are expected to introduce themselves, tell “their story,” and show that they are genuinely interested in the companies they are calling. Another sophomore in the process, Jesse Katz, talks about how difficult it is to balance professionalism with keeping a unique conversation. “The calls start to get repetitive,” he explained. “I always do my best to ask good questions, but have recently made a bigger effort to show my personality. I realized the best way to be remembered is to try and connect on a personal level.”
While networking can get you in the door, you still need to be able to kill the interview. It’s also tough for students to learn the technical skills that are needed for investment banking interviews. There are six main “guides” that students use to study technicals, all stemming from Breaking Into Wall Street. These cover core concepts, accounting, enterprise/equity value, valuation, M&A, and leveraged buyouts. If you are unfamiliar with some of these terms, that is more than fine; I was too when I started. The same goes for Katz, who remembers how he felt when he opened the first guide. “When I started reading the guides, I felt totally overwhelmed,” he says. While he is still in the process of learning, the technical prep work can feel like a full-time job at times. Katz explained, “When you first start out, you have to study for hours.” There is a lot to learn. Students spend months reading technical guides and doing mock interviews to get used to the kinds of questions they’ll probably be asked.
The role of mentorship
Investment clubs at the University of Michigan play a major role in helping students prep. While these clubs are highly selective, securing a spot can give students a massive leg up. Having upperclassmen who went through the process in your corner can be a major help. I am fortunate to be part of both the TAMID Group and Michigan Interactive Investments, both of which offer a structured setting and support to make the process seem more manageable. While on the surface these clubs are not technically investment banking clubs, they both offer aid in technical honing and teaching more about what these banks are looking for in candidates. They do this by holding resume workshops, technical training sessions, and interview prep.
Ben Cohen, the Vice President of the TAMID Group, is committed to making sure he fosters a helpful and healthy environment for students to prep for future interviews. He explained, “We’ve made this a place where students can help each other and swap tips. Students have to start early, sometimes before they even decide what they want to do with their lives. It will take over their daily lives for a while, so they need to know what they’re getting into.”
For sophomores who are still getting used to college life in general, this early push into recruiting can be especially stressful. Elan Grossman, Director of Education for TAMID, says that one of the hardest parts is helping sophomores understand what is expected of them and how the process works. “A lot of sophomores don’t know what investment banking is or how to start,” he says. “A big part of my job is to teach them how to get ready and network.”
My own experience with mentorship reinforced how crucial it is to have guidance throughout this intense process. I was able to do multiple mock interviews each week, not only with upperclassmen in both TAMID and Michigan Interactive Investments but also with close friends who were just as driven. These sessions refined my interview answers, learn from others’ mistakes, and feel more prepared for the high-stakes interviews that lay ahead. Despite the fierce competition, I found that having a group to lean on made the process not only manageable but also more collaborative. While investment banking recruiting can often feel like a cutthroat game, it’s wise to build a network of peers who will push you forward and support you.
The emotional and social impact of recruiting
Many students find it hard to concentrate on networking calls, studying late at night, and remembering technical terms. To balance schoolwork and a tough hiring process, people often have to work long hours and give up time with their friends and family. Pastolove, who is taking many classes and recruiting, thinks about how hard it is on his mind. He says, “It feels like you’re always on. You go to class, but you also make calls and study the guides at night to try to keep up with everything. It’s hard work, but if you stop, you feel like you’re falling behind.”
This is something that Katz agrees with, even though he knows that it means making social sacrifices. “I have to miss some times of hanging out with friends because I have a networking call or need to get caught up on work,” he says. “If you’re serious about it, you have to put recruiting first, even if it means giving up some things.” A lot of people feel alone during this process, especially if their close friends or roommates aren’t also recruiting. Katz says, “Sometimes it seems like you’re in a different world. Even people close to you don’t fully understand what you’re going through.”
Balancing the social and work demands of recruiting was a challenge I also faced. To regain balance, I started waking up earlier and used the quiet mornings to send emails, review study guides, or do a practice interview. While it wasn’t perfect, it helped me stay on track and still make time for friends.
A test of character
Resilience is one of the most important lessons Elan Grossman and Ben Cohen teach the younger students they work with. Elan loves to tell them, “You will hear a lot of no. But it’s important to keep going and learn from everything that happens.” The process isn’t supposed to be easy; it’s a test of how well you can deal with rejection, stay focused, and keep getting better.
Ben Cohen also talks about how important it is to be strong when things go wrong. “It’s hard, and some people don’t make it.” I tell them to remember why they started, though. “You have to keep your foot on the gas, even when the process starts to seem like a never-ending cycle,” he says.
From my own experience, being resilient was important for getting through the hiring process. I interviewed from February to April after months of preparation. I got turned down multiple times, and while at the moment it hurt, I kept a positive attitude and used each setback to improve my answers and approach. Eventually, all of the pieces came together, and I got an offer. Looking back, each rejection wasn’t a failure; it was a learning experience that gave me the determination and grit I needed to succeed.
The power of strategy and support
When it comes to succeeding in the investment banking recruiting process, there’s no single formula for success. It takes discipline, planning, and being willing to ask for help from others.
Elan Grossman always stresses how important it is to not only be disciplined but to open up to others. He says, “If you want to have a successful recruiting cycle, you have to treat it like a job. And don’t forget that it’s okay to ask for help. Use the tools you have, like clubs or older students who have been through it before.”
Ben Cohen’s biggest piece of advice is that quality is just as important as quantity. “Your goal isn’t just to make a few calls or attend a few events,” he says. “It only takes one person to push you through the door. So while you still may want to cast a wide net at each firm, try to maintain each relationship. Follow up with everyone you speak with, as you never know who may pull the trigger and get you the job.”
Feature Photo by Sakorn Sukkasemsakorn on Unsplash