Investment Banking Cover Letter
January 6, 2025
Breaking into investment banking is no small feat. Among the many steps in the application process, your cover letter will serve as a unique opportunity to introduce yourself, demonstrate your fit for the role, and leave a lasting impression.
The resume will outline your qualifications, but a well-crafted cover letter personalizes your application and sets you apart in a competitive landscape. This blog’ll explore the essential components of a stellar investment banking cover letter and provide tips to make yours stand out.
Why Investment Banking Cover Letters Matter
Cover letters often receive less attention than resumes and networking efforts, particularly at major firms. However, they can be more critical in other scenarios, such as:
- Boutiques or local banks are smaller firms that are more likely to read your cover letter
- Unconventional backgrounds, if you’re transitioning from a non-traditional path, a cover letter helps explain your story and fill in any potential gaps
- In regions outside the US, in places like Europe, cover letters are typically given more weight in the application process
The best way to think of your cover letter is that it’s the icing on the cake—it won’t secure the job on its own, but it can greatly enhance how a recruiter views you. A poorly written one can hurt your chances – these are usually short letters with little content or personalized detail.
How to Structure Your Investment Banking Cover Letter
A winning investment banking cover letter must be concise, impactful, and tailored. Follow this four-paragraph structure to ensure that your writing covers the main points:
1. Introduction: Grab their attention
Start with a strong introduction that includes:
- Who you are (e.g., your current role or educational background).
- How you found the firm (mention a contact or event if applicable).
- The specific position you’re applying for.
Example:
My name is Jane Smith, and I am a third-year finance student at Columbia University. I recently connected with John Doe from your M&A team at a campus presentation and was impressed by your firm’s innovative deal strategies. I am excited to apply for the Investment Banking Summer Analyst position at your esteemed firm.
2. Showcase Your Background
Highlight your most relevant experiences and the skills you’ve developed that align with investment banking. Focus on internships, leadership roles, or impactful projects. Keep sentences concise and avoid lengthy descriptions of what you have achieved.
Example:
During my internship at Deloitte, I analyzed financial data for Fortune 500 clients, creating detailed valuation models that influenced strategic decisions. Additionally, my role as president of the Finance Club allowed me to organize workshops on M&A case studies, sharpening my analytical and teamwork skills.
3. Explain Why You’re a Good Fit
Connect your skills and experiences to the firm’s needs as this makes it easier for them to place you within the company. Demonstrate your understanding of the business and its values. It is helpful to emphasize what you bring to the table; particularly focus on skills that they would expect from an analyst.
Example:
My quantitative acumen, leadership experience, and ability to thrive in high-pressure environments align with the demands of the Investment Banking Summer Analyst role. I am particularly drawn to your firm’s track record of advising on landmark transactions, and I look forward to contributing to your dynamic team.
4. Conclusion: Seal the Deal
Wrap up with a professional closing that reiterates your enthusiasm and provides enough contact information for them to easily get in touch with you. Always remember to sign your letter professionally.
Example:
A copy of my resume is attached for your review. I would welcome the opportunity to discuss how my background aligns with the goals of your firm. I can be reached at (123) 456-7890 or via email at janesmith@email.com. Thank you for your time and consideration.
Financial Edge’s Resume template will help candidates present their education and achievements in a professional manner. It can be attached to any cover letter.
Our Tips for Writing an Outstanding Investment Banking Cover Letter
Here are a few tips that may help you when writing a cover letter:
- Keep it short: one page is ideal. Recruiters don’t have time to read lengthy documents.
- Customize it: make sure you mention the firm by name and include specific details that show you’ve done your research. Recruiters will be quick to spot (and exclude) generic-sounding letters that contain little detail about their company
- Avoid jargon: use clear and professional language – often fewer words are better than lengthy descriptions
- Be confident but genuine. Avoid over-the-top claims or gimmicks. Let your accomplishments speak for themselves. Remember, you are seeing an entry-level role, not trying to emulate a CEO!
- Proofread: Always proofread your document before sending it. Spelling or grammatical errors can make you look careless.
Five ‘Do’s’ when writing cover letters
- Research the company: demonstrate your understanding of the company’s mission, values, culture, and recent accomplishments. Highlight why the firm stands out to you and what appeals to you.
- Be specific: it’s good to include targeted examples that illustrate your skills and achievements relevant to the investment banking role.
- Maintain professionalism: use a formal tone and avoid casual language or overly personal anecdotes.
- Quantify your achievements: use numbers and data to showcase your impact (e.g., “boosted portfolio growth by 15%”) as it will make for a more interesting read.
- Use strong action verbs: choose dynamic verbs like “executed,” “led,” “analyzed,” and “optimized” to describe your contributions. It sounds better than ‘I was working on’.
Five ‘Don’ts’ when writing cover letters
- Avoid generic templates: a one-size-fits-all approach won’t impress. Tailor your cover letter to each firm and position and make sure you have researched the detail carefully.
- Don’t overshare: keep personal details to a minimum and ensure the focus stays on your qualifications and value to the company.
- Don’t ramble: stick to a concise, one-page format to respect the recruiter’s time.
- Steer clear of jargon: avoid using overly technical language or acronyms that might confuse a broader audience – make sure your qualifications are readable.
- Follow instructions: carefully adhere to application requirements. If specific details or formats are requested, ensure they’re included, or it may rule you out of the race.
Bonus Tips for a Successful Investment Banking Application
Finally, it is important to put the cover letter in the context of the overall investment banking application. There are a number of steps to follow to stay on top of the application process and ensure that you stand out from the pack
- Build your network: engage with professionals in the industry, alumni, or peers to gain insights and potential referrals. Networking can offer valuable context about a company and position and may open doors for more conversations regarding graduate hires.
- Prepare thoroughly for interviews: practice answering common investment banking interview questions. Be prepared to discuss your resume, accomplishments, and cover letter in depth.
- Stay current on industry trends: stay informed about market developments, recent deals, and emerging trends in finance. Demonstrating industry knowledge can set you apart so make sure you are well-read on recent events that are impacting the financial universe.
- Optimize your online presence: ensure your LinkedIn profile is polished, up-to-date, and aligns with your application materials. Employers often review candidates’ online profiles and do an online search to see if there is any more information available about you.
- Follow up thoughtfully: after interviews, send a personalized thank-you email to express your gratitude and reinforce your enthusiasm for the role. Recruiters may be pleased to receive these after a long day of sitting with unfamiliar faces. It will help you to stand apart from the crowd.
- Pursue Relevant Certifications: certifications like the CFA or Financial Edge’s micro-degree The Investment Banker and other finance-related qualifications can enhance your credibility and strengthen your application.
Conclusion
The purpose of a cover letter is to highlight what makes you the best candidate for the role you are applying for. With applications remaining highly competitive high for all investment banking roles, it’s important to do what you can to stand apart from the pack.
Additional Resources
Free Investment Banking Resume Template