Numerous exit opportunities exist because of the prestige, networking opportunities, and skill set developed during investment banking. Few undergraduates are capable of entering these paths immediately after graduation, and investment banking can serve as an ideal career stepping stone, if not a long-term career.
 

Business School
Attending graduate business school is a common step for many people after a few years at an investment bank. For those with and without undergraduate business degrees, a master of business administration (MBA) program can provide additional training in accounting, finance, marketing, and other relevant topics. Business school also provides an atmosphere for expanding your professional network. Top MBA programs include those at Harvard, Penn (Wharton), Stanford, Chicago, Columbia, Michigan, Berkeley, NYU, MIT, Northwestern, and UCLA. (See U.S. News' 2008 rankings for a complete list of top programs.)

Corporate Development
Corporate development is internal strategic planning and execution to further mature a firm. It includes forming strategic industry relationships, identifying and acquiring companies (internal M&A), recruiting management, and financing projects. The activities are typically determined by the CEO and other senior managers and are executed by a designated corporate development team. Investment banking provides exposure to many activities related to corporate development, making it a useful background. (See Wikipedia.)

Entrepreneurial Ventures
Whether starting a small or large business, entrepreneurial ventures require an understanding of how businesses should function. Investment banks provide exposure to the operations and finances of business industries and consequently prepare their employees for personal business ventures.

Industry
Exposure to the operations and finances of business industries prepares bankers to enter management roles within a variety of industries. Such areas include energy (natrual resources and power), media and entertainment, technology, retail, and real estate.

Investment Management
Investment management is also known as asset management. It includes making investment decisions for funds provided by clients. Funds can be contributed by insurance companies, pension funds, municipalities, and wealthy individuals. When managing the assets of high-worth individuals, investment management is often referred to as private wealth management. (See Vault and Wikipedia.)

Hedge Funds
Hedge funds are considered alternative investment vehicles, meaning they are unregulated or lightly regulated investment funds. Because one hedge fund may participate in investment strategies that are very distinct from another fund, the term hedge fund actually tells little to nothing about what an individual fund does. Thus, it is necessary to look at hedge funds individually to better understand their operations. Notable hedge fund management companies among others include D. E. Shaw & Co. , Fortress Investment Group, and Soros Fund Management . (See Vault and Wikipedia.)

Private Equity
Private equity (PE) firms raise money from pension funds, endowments, corporations, and wealthy individuals in order to form investment funds. The firms then purchase large stakes (i.e., private equity) in private companies and subsequently make profits on selling their equity either to another private owner or to the public market. Major PE firms include Apollo Management, The Blackstone Group, The Carlyle Group, Kohlberg Kravis Roberts, TPG, and Bain Capital. (See Vault and Wikipedia.)

Venture Capital
Venture capital (VC) is often considered a subset of private equity. While PE groups typically buy equity in mature firms, VC groups primarily invest in start-up companies with potential for high growth. Because VC investments are mainly in new, unproven companies, they usually have a higher level of risk. However, the reward can be much greater. (See Vault and Wikipedia.)