Investment underwriters work with private companies who want to go public and sell shares of their company stock, also known as an initial public offering (IPO), by determining the price of a firm’s IPO stock. They manage communications between corporate issuers of securities and clients pertaining to private equity investments by contacting potential investors, such as mutual funds or insurance firms, and negotiating and structuring the terms and conditions of mergers and acquisitions.
- Conduct securities valuation or pricing for corporate mergers, acquisitions or sales
- Research companies’ operational and financial performance to find out fiscal conditions
- Gather, organise and prepare reports for financial transactions and executions of all deals
- Present findings to corporate clients to outline the pros and cons of business decisions
- Engage with clients regarding debt restructuring, raising new debt or refinancing debt
- Engage with clients to evaluate their capital needs and analyse market conditions to produce suitable financial packages
- Perform risk assessments using credit data, such as borrowing history and credit rating
- Communicate to clients on various aspects of capitalisation, like amounts or timing
- Work with other professionals, such as attorneys or accountants, to complete the project
- Contact loan officers to obtain additional information when it is necessary
Skills and qualities
With a stellar portfolio, one that is comprised of numerous successful mergers, acquisitions and IPOs, you will be able to advance to higher-level positions in equity research and investment banking.
Standard business hours
An investment underwriter will work a 40-hour workweek during regular business or market hours. When negotiations are intense and deadlines need to be met, they can anticipate working evenings and weekends.
This position will also require a modest amount of travelling – locally and internationally – to meet clients, investors and other business professionals or lay out company stocks.
Annual salary estimates are based on percentile wage data collected through the Occupational Employment Statistics (OES) survey of US workers.
Qualifications and training
Bachelor’s degree in finance-related subject
To become an investment underwriter, you will need to possess a bachelor’s degree in accounting, economics or finance. However, if you wish to increase your salary prospects and enhance career opportunities, then it would be a good step to enroll in a Master of Business Administration (MBA) programme.
Once you graduate, you will need to apply for and obtain a licence from the Financial Industry Regulatory Authority (FINRA), requiring you to pass exams and complete additional coursework.
SourcesOxford Martin School Financial Industry Regulatory Authority (FINRA) O*NET OnLine Bureau of Labor Statistics
Last Updated: Wednesday, November 2, 2022