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Free Banker BlueprintPrivate Wealth Management (PWM) Definition: Private wealth management is the division of a bank that provides financial and investment advisory services to high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals and families in exchange for fees on the managed assets.
The definitions of “high net worth” and “ultra-high net worth” vary, but as rough guidelines:
People often use the terms Private Wealth Management (PWM) and Private Banking (PB) interchangeably, and we tend to do the same on this site. But the technical differences are:
Many students use PWM and PB internships as springboards into corporate finance roles, such as investment banking, while others decide to stay in the field and work their way up to the top.
We cover the main recruiting tips extensively in the “Recruiting and Interviews” section of the Private Banking article, so you should refer to that.
In short, interviews tend to emphasize breadth over depth, and you should know about the markets, portfolio management, different asset classes, economics, why this firm, why this industry, your strengths and weaknesses, etc.
They will not ask you to build a 3-statement model or DCF or even walk through them, and the technical questions common in IB/PE interviews will not come up.
Questions tend to revolve around how you might advise clients to invest their portfolios, how you might win new clients, and which asset classes you might recommend based on a client’s goals.
The process itself is straightforward: network and apply online, do an initial HireVue or phone screen, and then do in-person interviews.
The main difference is that it moves far more slowly than the IB recruiting process and requires far less preparation work in advance.
You should refer to the “Day in the Life” section of our article on Private Banking for all the details, but in short:
On average, it’s a 50 hour per week job, so the trade-off vs. investment banking salaries is clear: in exchange for greatly reduced hours, expect greatly reduced bonuses.
Private banking is best at the top levels when you have an established client list and plenty of underlings to do most of the work. Compared to an investment banking Managing Director, a PWM or PB MD has a much less stressful life and still earns a good amount.
They don’t have “blowout years” like some IB MDs do, but many people would take high-six-figure compensation in exchange for less stress and reduced hours.
Let’s not mix words: our courses are not at all geared toward private banking or private wealth management.
In general, you will not find many PWM or PB courses online because most of the work is very specific to clients’ needs and can’t be taught as a specific, repeatable process.
If you want training in this area, you’ll have better luck with general courses on topics like macroeconomics, the markets, trade policy, and different asset classes.
With that said, some of our Breaking Into Wall Street (BIWS) courses are applicable to parts of PWM and PB: