A private investment banker is a representative of a financial institution, or investment bank, who works with privately-owned companies. He or she may provide the company, or client, with advice related to investment options and methods for raising capital. A private investment banker also manages the company's investment portfolio. Private investment bankers do not offer loans to or accept deposits from the general public.
One area in which a private investment banker might work is mergers and acquisitions. For example, in the case of a merger, the banker will try to find a buyer or company whose strategic goals are a good fit with the company being sold. In the case of acquisitions, in which the company is trying to purchase or acquire another company, the private investment banker will pursue companies that are suitable for what the company is looking to buy.
If a merger or acquisition is in any way questionable, the banker will offer the client advice on the best way to proceed. Once a sale is made, he or she may help the company to restructure its finances in order to be more viable. One benefit to private placement is that it eliminates any hassles that are associated with a publicly-owned company that is for sale.
A private investment banker also handles large financial transactions, both arranging and negotiating them. He or she will also work to solve financial failures or budget deficits within a private company. This type of banker may also suggest financial ventures for the company to undertake.
In addition to the financial side of a career in private investment banking, many bankers are also involved in research. This might involve studying the market and looking at similar companies, although this would be limited to publicly-held companies due to the availability of their financial information. Studying financial documents is another part of the research a private investment banker may be asked to complete. Using the research acquired, the banker will often write reports and make recommendations to his or her client based on the results of the research.
Being a private investment banker requires strong mathematics, analytical, and accounting skills. It sometimes requires the banker to work well in high-pressure situations. While in some cases a bachelor's degree is enough to attain a position at a private investment bank, most bankers hold master's degrees in business administration (MBA). Some of the coursework required to be a successful private investment banker includes courses in finance, statistics, accounting, economics, and business administration.