A common distinction between corporate finance and investment banking roles is that:
Responsibility: A corporate finance professional is responsible for day-to-day financial operations as well as short- and long-term business objectives, whereas an investment banker is responsible for raising capital in the public markets. An investment banker also manages private equity and debt capital placements, as well as mergers and acquisitions (M&A) transactions.
Key Performance indicators: Investment banking positions are entrusted with capital growth, whereas the corporate finance profession is utilised to manage a company’s capital and strategic finance-related choices.
Therefore the key takeaways are as follows:
- Corporate finance administers a firm, whereas investment banking expands it.
- An investment banker concentrates on generating capital, whereas a corporate finance specialist works with day-to-day financial operations and short- and long-term business goals.
- The educational and experience requirements for becoming an investment banker are more stringent than those for most corporate finance roles.