INDUSTRY OVERVIEW
FINANCE
The finance industry is a broad and dynamic sector that encompasses a wide range of businesses and services dedicated to managing money, investments, and financial assets. It is traditionally organized into several major segments, including banking, investment, insurance, real estate, and financial planning, each serving unique but interconnected roles in the global economy. Within these areas, financial institutions provide essential services such as lending, investing, wealth management, and risk management, all of which support individuals, businesses, and governments in achieving financial stability and growth. The industry includes a diverse mix of players, ranging from large multinational banks and investment firms with global reach to smaller, specialized advisory practices that serve niche markets. Collectively, these institutions play a critical role in facilitating economic activity, enabling capital flows, and supporting long-term financial security for both organizations and individuals.
RECRUITING TIMELINE
INDUSTRY PATHWAYS
Finance is a high-paying, dynamic, fast-paced industry.
With many pathways into finance, and high-ceiling pay in senior positions, it is a highly sought-after career. Below, we’ll explain the nuances of finance, timelines to keep in mind for recruiting, overviews of popular pathways within finance, and lastly, feature an industry professional’s advice for your journey into finance.
01 PRIVATE EQUITY
Pathway Overview
Private equity firms invest in companies, improve them operationally or financially, and then exit through a sale or IPO. It is considered one of the most competitive and high-paying areas of finance. Analysts and associates build models (especially leveraged buyouts), analyze industries, and work closely with management teams. Undergraduates rarely go straight into PE. A handful of mega-funds and upper-middle-market firms hire analysts directly, but the standard route is: Undergrad → Investment Banking (2–3 years) → PE Associate. MBA candidates often enter PE at the post-associate level, especially if they had pre-MBA experience in banking or consulting. The common exit opportunities are as follows: internal progression to Vice President, Principal, and Partner roles; exits to hedge funds, corporate development, or entrepreneurship; leaving after 2–4 years for an MBA at a top program to re-enter at a higher level.
02 INVESTMENT BANKING
Pathway Overview
IB analysts advise companies on raising capital, mergers and acquisitions (M&A), and restructuring debt or operations. M&A bankers handle dealmaking, while restructuring bankers work with distressed companies through bankruptcy or turnaround processes. Undergraduates typically join as summer analysts after junior year, with many offers converting to full-time. Analysts often exit after 2 years into Private Equity, Hedge Funds, or Corporate Strategy. Others pursue an MBA to switch industries or re-enter finance at the associate level.
03 HEDGE FUND
Pathway Overview
Hedge funds pool capital from investors and employ a range of strategies to generate returns, from long/short equity to global macro. Analysts spend much of their time researching companies, building investment theses, and pitching ideas to portfolio managers. Undergraduates rarely enter directly unless through exceptional internships or connections. A more common route is: Undergrad → IB or Equity Research → Hedge Fund Analyst. Careers can progress to Portfolio Manager or even starting one’s own fund. Other exits include family offices, corporate treasury, risk management, or moving into PE.
04 WEALTH MANAGEMENT
Pathway Overview
PWM focuses on advising high-net-worth individuals and families on investments, tax planning, and estate management. It is more client-facing than IB, PE, or HFs, requiring strong communication and relationship-building skills. Undergraduates can enter PWM through rotational programs or analyst roles at large banks (Morgan Stanley, Goldman Sachs) or boutique wealth firms. Career progression is often within the same field: from Analyst → Associate → Senior Advisor → Managing Director. Some pivot to fintech, private banking strategy, or investment consulting.
INDUSTRY SPOTLIGHT
"Everyone works relentlessly there, but people always prioritize others first. I think that kind of constant selflessness really cemented for me that Goldman was a place I wanted to be."
Tommy Pettinger, Goldman Sachs Multi Asset Solutions Analyst; University of Notre Dame '26
YOUR GUIDE TO AN MBA
50 Successful Harvard Business School Application Essays
Check out this resource to help you build your ideal application profile to apply to top Masters in Business Administration Graduate programs in the US. Gain exclusive access to read inspiring and well-crafted essays by successful HBS applicants!
YOUR GUIDE TO AN MBA
50 Successful Harvard Business School Application Essays
Check out this resource to help you build your ideal application profile to apply to top Masters in Business Administration Graduate programs in the US. Gain exclusive access to read inspiring and well-crafted essays by successful HBS applicants!
