October 2025
Investment Banking Recruitment Trends: 2024–2025
The U.S. investment banking market is undergoing significant structural change that is reshaping hiring priorities, regional growth, and sector-specific deal activity. Driven by a new wave of Managing Director hires, expanding deal pipelines, and intense competition for skilled talent, investment banking recruitment in 2024–2025 looks markedly different from just a few years ago.
Investment banking hiring trends
Over the past two years, investment banks have invested heavily in Managing Director recruitment. These senior hires are now building out execution teams to manage growing deal flow, creating sharp demand for Analysts, Associates, and Vice Presidents with immediate impact potential.
Banks are prioritising candidates from comparable platforms who can deliver results quickly. In broader coverage areas such as Industrials, Business Services, and Consumer, firms have shown more flexibility in hiring, but competition remains strong in specialised sectors including FIG, Energy, and Healthcare. Compensation has become a key differentiator. To secure high-performing bankers, firms increasingly offer external promotions, sign-on bonuses, deferred compensation buyouts, and guarantees.
Jake Schneider, Senior Vice President in New York, explains:
Banks have been seeking lateral bankers from similar platforms who can hit the ground running and take ownership of live deals straight away. For the right candidates, firms are more willing to meet compensation and leveling expectations than in previous years. We’ve seen shops offering guarantees, non-prorated bonuses, and buying out deferred compensation to secure top talent. It’s a more competitive environment, and firms know they need to move fast to land the people who can execute.
Regional expansion and competition
Investment banks are broadening their geographic reach beyond New York and other traditional hubs to capitalise on growth in regional markets. Cities such as Tampa, Charlotte, Dallas, and Minneapolis have seen a notable influx of senior bankers and specialist teams.
Bulge-bracket institutions including Jefferies, J.P. Morgan, and UBS are re-establishing regional coverage, particularly across the Midwest and Northeast. In the Southeast, however, they face stiff competition from boutique investment banks that specialise in lower middle-market transactions. These boutique firms continue to perform strongly due to their agility, strong local relationships, and targeted sector expertise.
Daniel Harrington, Principal Consultant in Charlotte, observes:
Local boutique banks have continued to shine in the Southeast. Their agility and relationship-driven approach allow them to maintain deal momentum even when larger institutions slow down. They’re winning business because they understand their markets and can move quickly on opportunities. These firms are also investing in senior hires while rewarding junior teams with competitive bonuses and clearer long-term career paths. It’s helping them retain talent and grow despite market volatility.
Sector-specific investment banking recruitment
Business services
Business services remains one of the most resilient sectors in the investment banking market. Private equity buyers are targeting founder-owned and mid-market firms, while infrastructure, waste management, and AEC (architecture, engineering, and construction) continue to benefit from stable long-term demand. Construction and building products also remain active, boosted by the expansion of data centres linked to AI growth.
Harrington adds:
Business Services has proven remarkably resilient. Many of these businesses are family- or founder-owned, which makes them attractive to private equity investors looking for succession or liquidity opportunities. What’s driving activity here is the essential nature of these companies—they’re in areas like infrastructure and environmental services where demand stays consistent even when other sectors slow down. That stability is translating into consistent hiring and sustained deal flow.
Technology and AI-driven deal flow
Technology investment banking has rebounded strongly in 2024 after a slower 2023, driven by the rapid integration of artificial intelligence across industries. The surge in demand for semiconductors, GPUs, and advanced hardware has revitalised deal activity, while private equity firms and strategic buyers have turned their attention to software companies embedding AI into their platforms.
Mark Fukuda, Associate Vice President in Los Angeles, explains:
AI is now reshaping deal activity across multiple sectors. In Technology investment banking, the knock-on effects are clear—semiconductors, data centres, and renewable energy deals have all accelerated. Private equity firms and strategic buyers are aggressively pursuing software platforms that integrate AI, recognising the long-term value of early adoption. Hardware is another focus, particularly GPUs, which are in high demand. It’s reminiscent of the 2021 crypto cycle, but this time the drivers are broader and more sustainable. AI is no longer a niche theme, it’s central to how investors think about value creation.
This AI-driven transformation is changing the profile of investment banking recruitment, pushing firms to hire professionals who understand emerging technologies and can execute complex, cross-sector transactions.
Energy and financial services
Traditional energy has faced tariff-related challenges, but midstream operations and renewables remain steady contributors to deal flow. In Financial Services, M&A activity continues to be driven by depositories and insurance, while fintech and payments sustain strong momentum due to ongoing innovation. Franchising also provides reliable deal activity, particularly among boutique banks that focus on smaller transactions and founder-owned businesses.
Talent, career progression, and firm strategy
Competition for top investment banking talent has intensified across all levels. The wave of MD-level mobility has created new openings for mid-level professionals, while candidates increasingly prioritise firm culture, flexibility, and growth potential when evaluating offers. Promotion timelines are largely unchanged, but career progression now varies more widely depending on deal flow and team structure.
Emily Long, Director in Chicago, says:
The traditional career path in investment banking is still intact, but it’s less rigid than it used to be. In teams that are top-heavy, upward mobility can be slower because there are fewer leadership openings. On the other hand, leaner teams or groups experiencing turnover are promoting faster. Market dynamics and deal flow now have a much greater influence on how quickly someone can move from Associate to VP, or VP to Director.
Indicative promotion timelines:
- Analyst: 2–3 years
- Associate: 3–4 years
- Vice President: 3–5 years
- Director / Executive Director: 2–3 years before MD consideration
Senior banker recruitment and compensation
At the senior level, Managing Directors are re-evaluating what they value most in a new platform. Many are prioritising transparency, flexibility, and compensation structure over brand recognition. This shift has allowed boutique investment banks to compete effectively with larger institutions.
Boutiques are attracting senior talent through competitive revenue splits, guaranteed first-year compensation, and, in some cases, equity or profit-sharing arrangements. Location flexibility has also become a key factor, with many firms offering hybrid or regional options to appeal to experienced bankers seeking better work-life balance.
Heather Cox, Principal Consultant in Charlotte, comments:
Boutique firms that provide transparency and flexibility are competing head-on with the big players. We’ve seen many senior bankers leave larger platforms for firms that offer clear revenue splits, guaranteed first-year compensation, and the ability to work from preferred locations. For a lot of MDs, it’s not just about prestige anymore. They want to be part of a business where their performance directly influences outcomes, and where compensation reflects that in a clear and predictable way.
Investment banking salary guide (2024–2025)
Analyst: Base $80k – $110k | Bonus 30 – 70%
Associate: Base $120k – $180k | Bonus 40 – 100%
Vice President: Base $150k – $200k | Bonus 40 – 150%
Director: Base $200k – $250k | Bonus 50 – 200% (Performance & Origination)
Managing Director: Base $130k – $250k+ | Bonus 30 – 60%+ of Revenue Generation
Analyst: Base $100k – $135k | Bonus 30 – 60%
Associate: Base $150k – $225k | Bonus 30 – 80%
Vice President: Base $225k – $275k | Bonus 30 – 125%
Director: Base $275k – $300k | Bonus 70 – 200% (Performance & Origination)
Managing Director: Base $300k – $400k | Bonus 20 – 30%+ of Revenue Generation
Analyst: Base $110k – $150k | Bonus 30 – 75%
Associate: Base $175k – $250k | Bonus 50 – 100%
Vice President: Base $275k – $300k | Bonus 50 – 150%
Director: Base $300k – $350k | Bonus 100 – 200% (Performance & Origination)
Managing Director: Base $300k – $450k | Bonus 20 – 30%+ of Revenue Generation
Analyst: Base $100k – $135k | Bonus 20 – 50%
Associate: Base $175k – $225k | Bonus 20 – 75%
Vice President: Base $250k – $300k | Bonus 40 – 125%
Director: Base $300k – $350k | Bonus 75 – 150% (Performance & Origination)
Managing Director: Base $300k – $450k+ | Bonus 20 – 30%+ of Revenue Generation
For a detailed look at current pay trends and benchmarks across all levels of investment banking, view our latest Selby Jennings Salary Guide.
What these hiring trends mean for firms and professionals
The current investment banking hiring market is defined by competition, specialisation, and change. Firms are competing on deal flow, compensation innovation, and flexibility rather than just brand reputation. Regional offices are expanding to capture new markets, while technology and AI are creating fresh opportunities across sectors.
For professionals, lateral movement remains a key pathway for career growth. Experienced bankers are pursuing platforms that offer stronger pipelines, broader exposure, and long-term potential. Junior and mid-level bankers are assessing where they can build lasting relationships, gain transaction experience, and accelerate their progression in a leaner, faster-moving environment.
Partner with Selby Jennings
Selby Jennings partners with investment banks across all tiers, from bulge bracket to boutique, to identify, attract, and retain top performers. Our consultants have deep sector knowledge, from technology and business services to FIG and energy, and understand the market dynamics shaping today’s hiring landscape.
If your firm is looking to strengthen its team, our specialist consultants can connect you with high-performing talent that fits your goals. If you are a professional exploring investment banking jobs or planning your next career move, view our latest opportunities or submit your resume today.
Investment Banking Recruitment FAQs
Strong financial modelling skills, M&A experience, and sector knowledge remain essential, but banks are also prioritising candidates with data analysis, AI, and digital infrastructure expertise. MBAs from top programs are still valued, but firms are increasingly open to experienced hires from non-traditional backgrounds who demonstrate execution ability and client management skills.
Hiring processes have become faster and more data -driven. Many firms now use competency-based interviews and online technical assessments to identify strong lateral candidates more efficiently. Banks are also shortening hiring cycles to avoid losing top performers to competitors, and virtual interviews remain common even for senior-level searches.
Middle-market hiring remains strong across business services, industrials, and niche technology verticals such as software and infrastructure. Private equity deal flow continues to drive advisory activity, creating consistent demand for execution-focused Associates and Vice Presidents in these spaces.
Location flexibility has increased significantly since 2020. While senior leadership roles still tend to be based in major hubs such as New York, Chicago, and Los Angeles, firms are increasingly open to regional or hybrid setups for mid-level and execution professionals. This shift has made markets like Dallas, Charlotte, and Tampa more competitive for talent.
Boutiques typically offer higher revenue splits, transparent bonus structures, and sometimes equity participation in lieu of large-brand prestige. Compensation can vary more based on individual performance, but strong dealmakers often earn above-market total packages due to lower overhead and direct profit-sharing arrangements.
Candidates should evaluate factors beyond compensation, including leadership style, deal pipeline stability, culture, and long-term platform potential. It’s also useful to compare promotion history and retention rates across teams. Speaking with recruiters who have insight into firm structures and internal dynamics can help clarify where growth opportunities genuinely exist.