How Chartered Accountant Can Become An Investment Banker?

Strong financial skill is the core of investment banking, and chartered accountants (CAs) are considered as experts in the matter. Therefore, it is not surprising to see young CAs taking the plunge into the deal making business to further their careers.

Most CAs, for the longest period of time, after clearing one of the toughest exams and becoming a member of the Institute of Chartered Accountants of India (ICAI), dreamt of starting their professional journey by joining one of the big four accounting firms: KPMG, Deloitte, Ernst & Young (EY) and PwC.

They also considered joining internal audit, finance, treasury or risk departments of large corporates.

In recent times, however, investment banking is increasingly becoming one of the most sought-after fields for CAs. Apart from the big-four consulting firms, several boutique firms are also looking to expand their investment banking or merchant banking teams with qualified CAs.

Investment banking field is gaining prominence in the market due to rising mergers and acquisitions (M&A) deal activity in India. According to Deloitte, the M&A deal activity in India grew 40.5% on year to $163 billion in 2022 and total number of deals reached to 911 in 2022, up from 826 a year ago.

The global consultancy firm expects India’s M&A activity to remain strong in 2023, backed by rising domestic demand, the domestic companies’ healthy balance sheets and as cash-rich conglomerates focus their efforts on expanding their presence in the Indian market.

Given the immense growth opportunities, CAs desirous of becoming an investment banker in India, can surely take the plunge in investment banking field.

To become a successful investment banker, CAs should keep in mind the followings:

Gain Experience

• It is advisable to gain experience in the field of finance, accounting, or audit. This can be done by working in a related role in a financial institution or as an auditor in a public accounting firm.

Network

• Networking with people in the finance industry can be helpful in finding job opportunities in investment banking.

Additional Skills

• Investment banking requires a good understanding of financial modeling, market analysis, and valuations. CAs can acquire these skills through online courses, attending workshops, and participating in investment banking training programs.

Explore Opportunities

• After acquiring required skills and experience, CAs should start applying for investment banking positions in leading banks and financial institutions.

Pursue Certifications

• Pursuing certification courses in investment banking or finance can help in getting a competitive edge in the job market. For example, the Chartered Financial Analyst (CFA) program is highly respected in the finance industry.

According to Bain & Company, deal-making dropped off in much of the rest of the world in 2022, but India bucked the global trend, with strategic M&A deal volume and value reaching all-time highs during the year.

Conglomerates and other traditional businesses are turning to M&A to win future profit pools and in its fourth straight year of steadily growing volume, deal value in India rose by 139% in 2022, the global consultancy firm said.

Investing banking is a highly competitive field, and becoming an investment banker requires a solid educational background, relevant experience, as well as a good understanding of financial concepts and markets.

However, investment banking offers an exciting opportunity for CAs to put all their skills to use in order to seal the deal!

Do You Know Indian CAs Can Explore Opportunities In UK Soon?

Indian CAs will soon be able to explore professional opportunities in the UK as the country's federal cabinet recently approved the signing of a memorandum of understanding (MoU) between the ICAI and the Institute of Chartered Accountants in England & Wales (ICAEW).

The MoU is for providing recognition of the qualification and training of each other’s members and admit them in good standing by prescribing a bridging mechanism on the prevailing terms and conditions.

The parties will provide each other with the information on key changes to their qualifying/admission requirements, continuing professional development policy, exemptions and any other relevant matters.

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