How To Write an Investment Banking Cover Letter

A cover letter might seem like a formality that is unnecessary, but it is an important piece of the job search process. Employers are more likely to consider a resume that is accompanied by a well-written cover letter than one that isn’t. A well-crafted cover letter is an opportunity to impress a potential employer. This means it is important to create a well-written and unique letter for each potential job. Your resume has all of your experience and education, but a cover letter allows you to show how your skills and experience meet the job requirements. A cover letter for investment banking shows three very important facts.

1. You understand that the bank is looking for
2. You have the skills needed for the job
3. You are articulate

Since your cover letter is your first impression, it needs to be well-written, concise, and free from any mistakes. Some employers will quickly glance at a cover letter and then move on to the resume, but it is always important to attach one. In some cases, a good cover letter can make the difference between an employer considering you for the job or moving on to the next candidate. Situations where a good investment banking cover letter is critical include:

• When applying directly to a bank without going through a recruiter.
• When you are a new graduate applying for an investment baking job.

When writing your cover letter always think of it as the most important part of your job application. Showcase why you are a good fit, and how you stand out from other candidates. Each investment baking job you apply for needs to have a unique cover letter. Start with a general template to organize your thoughts, but then get inspired by the specific bank you are applying to, its culture, and the job. Customize each letter and tailor it to fit.

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An investment baking cover letter needs to make you stand out from other applicants and land you an interview. It should include:

1. The Greeting

The greeting should always include the hiring manager’s name. Address it using the person’s first and last name, including “Mr.” or “Ms.” Take the time to find out who is doing the hiring and never use a general salutation such as “To Whom It May Concern.”

2. The Introductory Paragraph

This is the easiest paragraph to write. It introduces you as an applicant, explains who you are and why you are writing. Make sure you know who you are writing to. If it’s a recruiter, this paragraph should include why you chose that recruiter. If you are writing directly to a bank this paragraph should stay short and sweet. This paragraph doesn’t need to include your name. It should be prominently displayed at the top of the letter instead.

3. The “Why You” Paragraph

Sell yourself in the second paragraph, and show some of your personality while doing it. Add some information about why you are applying for this particular job, making sure to use unique and interesting phrases. Refrain from using the typical “I am motivated” and “I work well under pressure.” Do some research about the job and use keywords such as “financial modeling” and “due diligence” if they apply. If you are a new graduate, this paragraph should include relevant classes, school clubs, or internships. Whether you have experience or are just starting out, talk about why you love the investment banking industry and why it is important to you.

4. The “Why This Bank” Paragraph

Take the time in the third paragraph to explain why you want to work for the bank you are applying to. Be specific, so again, do some research. Make sure you don’t just reiterate what you see on their website. Find some unique reasons for choosing the particular bank to make your cover letter stand out. Show an understanding of the bank’s culture, the companies future goals, and why it appeals to you.

5. The Call to Action

The last part of your cover letter is a call to action. Finish by stating you are looking forward to hearing from them and let the hiring manager know you are available for an interview. These are the basic steps to follow when creating your cover letter, but what will make your cover letter stand out? These tips will help you create an attention-getting cover letter.

Be Concise

Hiring managers at investment banks have hundreds of resumes to look over, so they don’t have time to read a lengthy cover letter. Quickly get to your point using short paragraphs with easy-to-read sentences.

Be Friendly But Stay Professional

Your resume is a formal document, but cover letters give you an opportunity to show come personality. You want to show you are a good fit and make the hiring manager want to work with you.

Focus on the Employer

While it might be easy to start sentences in your cover letter with “I,” keep it to just a few. While researching the bank look for some issues the bank or department is facing, their future goals, and make a connection between you and these goals.

Make it Original

Every cover letter should be unique. Investment baking cover letters can follow a formula, but use some creativity to make yours stand out. If you can do it concisely, include a specific challenge you overcame while working in the investment baking industry, or talk about a tough sale you closed. In addition to following all of these steps for your cover letter, it’s important to make sure you don’t make some common cover letter mistakes.

• Don’t forget to review and correct mistakes. Grammar errors will make your cover letter stand out in the wrong way and make you appear unprofessional.
• Don’t make claims you can’t back up. If you claim to be an expert in banking or finance, make sure you have the evidence to back it up.
• Don’t use unusual fonts or colors. Your cover letter needs to be professional, especially for investment banking.
• Don’t Make it too Long. The letter should only be one page and just a few short paragraphs. Resist the urge to describe all of your experiences and keep it to the ones that are relevant.
• Don’t forget to have someone read it. Have a peer read your letter. Ask them if it sells you as the best person for the job, and does it generate enthusiasm for you as an employee.

A compelling cover letter shows that you have researched the company and taken the time to find out not just the job requirements, but also the company’s needs and direction. Use your investment baking cover letter as an opportunity to express your enthusiasm for banking and finance, the role you could play in the company, and the value you would add.

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Your Name Address Phone Email Today’s Date   Name of Hiring Manager Title Company Business Address   Dear Hiring Manager’s Name, As a recent graduate of Cornell University with a BS In finance, I am eager to get my career in investment banking started. Your entry-level associate position opening is an excellent fit for my qualifications and experience.  In addition to my academics, I used my time at school to gain experience in banking and investing. As a member of the Cornell University Student Investment Group, I managed a live portfolio of long equity positions as part of the university endowment. Our successful record with investment returns up to 13.99 percent over three years. My role in the group involved both analysis and advising, and as a team, we developed financial strategies for our client. (Bank Name) is my first choice for my entry into the financial banking area, and I realize that this position is a unique opportunity to join the investment team of a bank that has generated strong long-term returns for its clients. I would like the opportunity to be a part of your continued success. I am ready to get started in my career and look forward to hearing from you at your earliest convenience. I can be reached at (phone number) or (email).   Sincerely, Your Name   It’s important to remember to craft an individual cover letter for each job. Since every job is unique, every letter also needs to be unique. Keep it short, be professional but friendly, and always include a call to action at the end, asking for a call or an interview before thanking the hiring manager for their time.