Finance Industry Sectors Explained: TMT, Healthcare, FIG, and Where to Focus Your Career

Investment banks don't just do "deals." They do deals in specific industries.

Most banks organize their coverage by sector: TMT, Healthcare, FIG, Industrials, Consumer, Energy, Real Estate. Each sector has its own clients, deal types, valuation methods, and culture.

Your sector choice matters more than most candidates realize. It shapes the skills you develop, the hours you work, the exits you access, and whether you find the work interesting.

This guide explains what each major sector actually involves. Not the recruiting pitch—the reality. You'll learn what the work looks like, what skills matter, and how to think about where you might fit.

Why Sectors Matter

Before diving into specifics, understand why sector choice matters for your career.

Deal Flow and Skills

Each sector has different deal types. Tech is heavy on M&A and IPOs. Restructuring groups see distressed situations. Energy involves project finance. The deals you work shape the skills you build.

Industry Knowledge

Analysts become mini-experts in their sector. You'll learn how tech companies grow, how drugs get approved, how banks make money. This knowledge compounds and differentiates you.

Exit Opportunities

PE firms and hedge funds often hire from specific banking sectors. Want TMT private equity? TMT banking helps. Want healthcare investing? Healthcare banking is the clearest path.

Hours and Lifestyle

Some sectors are busier than others. Restructuring spikes during downturns. M&A groups heat up in strong markets. Sector choice affects your lifestyle.

Interest and Fit

Two years of 80-hour weeks covering an industry you find boring is miserable. Interest matters. Choose a sector where you're genuinely curious about the clients and deals.

TMT: Technology, Media & Telecommunications

What It Covers

Technology: Software, hardware, semiconductors, IT services, internet companies, fintech, cybersecurity.

Media: Entertainment, gaming, advertising, publishing, streaming, sports.

Telecommunications: Wireless carriers, cable companies, towers, fiber infrastructure.

Some banks combine all three. Others split them—"Technology" as one group, "Media & Telecom" as another.

Deal Types

TMT is M&A-heavy. Tech companies are serial acquirers. They buy competitors, enter new markets, and acquire talent through deals.

Deal Type	Frequency	Examples
Strategic M&A	Very High	Microsoft/Activision, Salesforce/Slack
IPOs	High	Tech unicorns going public
SPAC transactions	Moderate (cyclical)	De-SPAC mergers
Leveraged buyouts	Moderate	PE take-privates of software
Growth financing	High	Late-stage private rounds

Valuation Methods

TMT uses standard valuation methodologies but with sector-specific twists.

Revenue multiples dominate for high-growth tech companies that aren't yet profitable. EV/Revenue, EV/ARR (Annual Recurring Revenue), and EV/GMV (Gross Merchandise Value) are common.

SaaS metrics matter for software: ARR, net revenue retention, CAC payback, rule of 40.

Subscriber/user metrics apply to media and telecom: ARPU, churn, lifetime value, subscriber acquisition cost.

DCF remains important but often uses unconventional assumptions—terminal growth rates, long runways to profitability.

What Makes TMT Unique

Pace of change. Tech evolves fast. The hot sub-sector shifts constantly. AI, cloud, crypto, metaverse—themes rise and fall.

High valuations. Growth companies command premiums. You'll model companies trading at 20x revenue that traditional valuation frameworks struggle to justify.

Founder dynamics. Many tech clients have founder-CEOs who think differently than corporate executives. The advisory relationship can be less formal.

Innovation exposure. You'll learn about emerging technologies before most people. The intellectual stimulation appeals to many analysts.

Hours and Culture

TMT is generally busy. Tech M&A volume is consistently high. When markets are strong, deal flow is intense.

The culture tends toward the analytical. Tech bankers often have quantitative backgrounds. The work involves deep model-building and understanding complex business models.

Exit Opportunities

TMT provides strong exits to:

Technology PE (Vista, Thoma Bravo, Silver Lake)
Growth equity (General Atlantic, TA Associates)
Tech-focused hedge funds (Tiger Global, Coatue)
Corporate development at tech companies
Venture capital (though operating experience often preferred)

Who Should Consider TMT

You're genuinely interested in technology and innovation
You enjoy learning about new business models
You're comfortable with higher-risk, higher-growth valuations
You want exits into tech-focused investing

Who Shouldn't

You prefer traditional, cash-flow-based analysis
Fast-changing environments stress you out
You want exposure to a broader range of industries

Healthcare

What It Covers

Pharmaceuticals: Large pharma companies, specialty pharma, generics.

Biotechnology: Drug development companies, gene therapy, vaccines.

Medical devices: Equipment manufacturers, diagnostics, surgical tools.

Healthcare services: Hospitals, clinics, labs, healthcare IT.

Managed care: Insurance companies, pharmacy benefit managers.

Some banks have unified Healthcare groups. Others split into sub-groups (Pharma/Biotech, Healthcare Services, MedTech).

Deal Types

Healthcare sees diverse transaction types.

Deal Type	Frequency	Examples
Pharma M&A	High	Large pharma acquiring biotech pipelines
Biotech IPOs	Moderate (cyclical)	Drug developers going public
Healthcare services PE	Very High	PE consolidation of physician practices
Medical device M&A	High	Strategic acquisitions
Licensing deals	High	Pharma partnerships with biotech

Valuation Methods

Healthcare requires specialized approaches.

Pipeline valuation for biotech: Risk-adjusted NPV of drug candidates based on clinical trial probabilities and market potential.

Sum-of-the-parts for pharma: Separate valuations for existing drugs, pipeline assets, and corporate overhead.

EBITDA multiples for services: Healthcare services companies valued like traditional businesses, often with add-backs for one-time items.

Revenue multiples for high-growth MedTech and healthcare IT.

What Makes Healthcare Unique

Regulatory complexity. FDA approval, clinical trials, healthcare policy—understanding regulation is essential.

Scientific literacy required. You'll need to understand drug mechanisms, clinical endpoints, and medical terminology. It's not optional.

Long time horizons. Drug development takes years. Biotech valuations depend on events far in the future.

Defensive characteristics. Healthcare is less cyclical than other sectors. People need healthcare regardless of economic conditions.

Hours and Culture

Healthcare banking varies by sub-sector.

Pharma M&A can be very intense during deal spikes. Biotech IPOs cluster at certain market windows. Healthcare services stays consistently busy due to PE activity.

The culture tends toward the intellectually rigorous. Healthcare bankers often have science backgrounds—pre-med, biology, chemistry. Understanding the underlying science is valued.

Exit Opportunities

Healthcare banking provides strong exits to:

Healthcare PE (Welsh Carson, TPG Healthcare, Linden Capital)
Healthcare-focused hedge funds (OrbiMed, Baker Brothers)
Pharma/biotech corporate development
Venture capital in life sciences
Operating roles at healthcare companies

Who Should Consider Healthcare

You have science background or genuine interest in medicine
You enjoy learning technical/scientific concepts
You want counter-cyclical exposure
You're interested in healthcare investing or operating roles

Who Shouldn't

Science and medicine don't interest you
You want deals that close quickly (drug development is slow)
You prefer sectors less affected by government policy

FIG: Financial Institutions Group

What It Covers

Banks: Commercial banks, investment banks, regional banks.

Insurance: Life, property & casualty, reinsurance, brokers.

Asset management: Traditional asset managers, alternative managers, wealth management.

Specialty finance: Consumer lenders, commercial lenders, leasing companies.

Fintech: Payments, lending platforms, insurtech (sometimes covered by TMT).

Deal Types

FIG has its own transaction mix.

Deal Type	Frequency	Examples
Bank M&A	Moderate	Regional bank consolidation
Insurance M&A	Moderate	Consolidation, runoff acquisitions
Asset manager deals	High	PE firms buying asset managers
Capital raises	Very High	Bank equity and debt issuances
Restructuring	Cyclical	During financial crises

Valuation Methods

FIG requires fundamentally different approaches.

Book value multiples dominate for banks: Price-to-Book, Price-to-Tangible Book Value.

Earnings-based metrics for insurance: P/E ratios, combined ratios, reserve adequacy.

AUM-based valuation for asset managers: Percentage of AUM, fee revenue multiples.

No EV/EBITDA. Traditional enterprise value metrics don't work for financial institutions because debt is an operating asset, not financing.

What Makes FIG Unique

Regulatory intensity. Banks and insurers are heavily regulated. Capital requirements, stress tests, and regulatory approval for deals add complexity.

Balance sheet focus. Understanding assets, liabilities, and capital is essential. The left side of the balance sheet matters more than in other sectors.

Different accounting. GAAP for financials differs materially from industrial companies. Loan loss reserves, insurance reserves, and mark-to-market accounting require specific knowledge.

Interconnected ecosystem. Financial institutions deal with each other constantly. You'll learn how the financial system actually works.

Hours and Culture

FIG is moderately busy compared to M&A-heavy sectors like TMT.

Capital markets activity creates regular deal flow. Bank M&A spikes periodically. Insurance is steadier.

The culture is analytical with emphasis on understanding complex balance sheets and regulatory frameworks. Many FIG bankers have accounting or finance backgrounds.

Exit Opportunities

FIG provides specific exits:

Financial services PE (Warburg Pincus, Stone Point)
Bank and insurance company strategy roles
Hedge funds focused on financial companies
Fintech corporate development and investing
Regulatory and policy roles

Who Should Consider FIG

You're interested in how financial markets and institutions work
You enjoy balance sheet analysis and accounting complexity
You want to understand the plumbing of the financial system
You're considering exits to financial services companies

Who Shouldn't

You find banking and insurance inherently boring
You want high-volume M&A deal experience
You prefer product-focused company analysis

Industrials & Infrastructure

What It Covers

Industrial manufacturing: Machinery, equipment, building products.

Aerospace & Defense: Aircraft manufacturers, defense contractors, suppliers.

Transportation: Airlines, railroads, logistics, shipping.

Infrastructure: Utilities, toll roads, airports, renewables.

Business services: Staffing, facilities management, commercial services.

Deal Types

Industrials sees steady strategic activity and increasing PE interest.

Deal Type	Frequency	Examples
Strategic M&A	High	Consolidation, vertical integration
PE acquisitions	Very High	Industrials is core PE hunting ground
Divestitures	High	Conglomerates selling non-core units
Infrastructure deals	High	Pension and sovereign wealth investment
Restructuring	Cyclical	Heavily affected by economic cycles

Valuation Methods

Industrials uses traditional approaches.

EBITDA multiples are standard. EV/EBITDA is the core metric, with adjustments for cyclicality.

DCF analysis with attention to capital intensity, replacement capex, and working capital cycles.

Asset-based valuation for capital-intensive businesses—replacement cost, asset values.

Sum-of-the-parts for conglomerates with diverse business units.

What Makes Industrials Unique

Cyclicality. Industrial companies are tied to economic cycles. Recessions hit hard. Recoveries lift dramatically.

Tangible assets. These companies make physical things. Understanding manufacturing, supply chains, and capital investment matters.

PE magnet. Private equity loves industrials—predictable cash flows, operational improvement potential, consolidation opportunities.

Global supply chains. Industrials companies have complex international operations. Trade policy, tariffs, and logistics affect valuations.

Hours and Culture

Industrials is moderately busy with consistent deal flow.

PE-driven activity creates steady work. Restructuring spikes during downturns. The pace is typically more predictable than TMT or M&A generalist groups.

The culture tends practical and less flashy than tech. Many industrials bankers have engineering backgrounds.

Exit Opportunities

Industrials provides broad exits:

Industrial PE (Clayton Dubilier, American Industrial Partners)
Infrastructure funds (Brookfield, Global Infrastructure Partners)
Corporate development at industrial companies
Operating roles at portfolio companies
Generalist PE (industrials is a core sector for most funds)

Who Should Consider Industrials

You prefer tangible businesses that make physical products
You're interested in operations and manufacturing
You want exposure to infrastructure and essential services
You're targeting generalist or industrial PE

Who Shouldn't

You want fast-changing, high-growth companies
You prefer technology and innovation narratives
Cyclical businesses make you nervous

Consumer & Retail

What It Covers

Consumer products (CPG): Food, beverages, personal care, household products.

Retail: Specialty retail, department stores, e-commerce.

Restaurants: QSR, casual dining, fast casual.

Apparel & luxury: Clothing, footwear, luxury goods.

Leisure: Hotels, gaming, travel, entertainment venues.

Deal Types

Consumer sees strategic activity and heavy PE involvement.

Deal Type	Frequency	Examples
Strategic M&A	High	Brand acquisitions, portfolio reshaping
PE buyouts	Very High	Restaurant chains, specialty retail
Divestitures	High	Large CPG selling smaller brands
Restructuring	Moderate	Retail sector pressure
IPOs	Moderate	Emerging consumer brands

Valuation Methods

Consumer uses standard methods with brand considerations.

EBITDA multiples are core, but brand premium varies significantly.

Revenue multiples for high-growth consumer brands and D2C companies.

Comparable analysis requires careful peer selection—growth profiles matter enormously.

Sum-of-the-parts for consumer conglomerates with diverse brand portfolios.

What Makes Consumer Unique

Brand value. Intangible brand value drives premiums. Understanding brand positioning, customer loyalty, and market dynamics matters.

Visible companies. You'll work on brands you recognize. The deals show up in newspapers.

Retail disruption. E-commerce has permanently changed consumer and retail. Understanding omnichannel and digital transformation is essential.

Seasonality. Consumer businesses have seasonal patterns. Holiday quarters, back-to-school—timing affects deal execution.

Hours and Culture

Consumer is moderately busy with periodic sprints.

Retail restructuring created heavy workload in recent years. CPG and restaurant M&A stays consistent. Seasonal patterns affect deal timing.

The culture tends more personable than highly technical sectors. Understanding consumer behavior and brand narratives matters alongside financial analysis.

Exit Opportunities

Consumer provides good exits:

Consumer-focused PE (L Catterton, TSG Consumer)
Generalist PE (consumer is a core sector)
Corporate development at CPG and retail companies
Operating roles in consumer companies
Hedge funds with consumer focus

Who Should Consider Consumer

You're interested in brands and consumer behavior
You want to work on recognizable companies
You enjoy thinking about marketing and positioning
You're targeting consumer-focused investing

Who Shouldn't

You prefer B2B companies and complex business models
Retail sector challenges feel depressing rather than interesting
You want purely quantitative analysis without brand considerations

Energy & Natural Resources

What It Covers

Oil & Gas: Exploration & production (E&P), oilfield services, refining, midstream.

Power & Utilities: Electric utilities, independent power producers, renewable developers.

Renewables: Solar, wind, storage, clean energy infrastructure.

Mining & Metals: Coal, precious metals, industrial minerals.

Deal Types

Energy is volatile and tied to commodity cycles.

Deal Type	Frequency	Examples
Upstream M&A	Cyclical	E&P consolidation, basin acquisitions
Midstream deals	High	Pipeline acquisitions, MLP transactions
Renewables M&A	Very High	Growing sector with deal activity
Project finance	High	Energy infrastructure development
Restructuring	Cyclical	When commodity prices collapse

Valuation Methods

Energy requires specialized approaches.

NAV (Net Asset Value) for E&P companies: Present value of proved and probable reserves.

DCF with commodity assumptions requiring price deck forecasts and sensitivity analysis.

EV/EBITDA with attention to maintenance vs. growth capex.

Yield-based metrics for midstream: Distributable cash flow, coverage ratios.

Levelized cost of energy for renewables projects.

What Makes Energy Unique

Commodity exposure. Oil, gas, and power prices drive valuations. Macroeconomic and geopolitical factors matter enormously.

Capital intensity. These are asset-heavy businesses. Understanding reserve engineering, drilling economics, and project finance is essential.

Energy transition. The sector is transforming. Traditional energy companies are pivoting. Renewables are growing. This creates both opportunity and complexity.

Technical knowledge. Engineering concepts—reservoir quality, EROEI, capacity factors—are part of the job.

Hours and Culture

Energy is volatile. Quiet during low oil prices. Extremely busy during commodity spikes and restructuring waves.

The culture tends toward the technical. Many energy bankers have engineering backgrounds or energy industry experience. Houston is a major hub alongside New York.

Exit Opportunities

Energy provides specific exits:

Energy PE (Riverstone, EnCap, Quantum)
Infrastructure funds for renewables and midstream
Energy company corporate development
Energy-focused hedge funds
Operating roles in energy companies

Who Should Consider Energy

You're interested in energy markets and commodity dynamics
You want exposure to the energy transition
You're comfortable with technical/engineering concepts
You're targeting energy-focused investing or operating roles

Who Shouldn't

Commodity volatility stresses you out
You prefer consumer-facing businesses
You want to avoid the carbon transition debate

Real Estate

What It Covers

REITs: Real estate investment trusts across property types.

Real estate developers: Residential, commercial, mixed-use development.

Real estate services: Brokers, property managers, real estate tech.

Lodging: Hotels and resorts (sometimes in Consumer).

Deal Types

Real estate has its own transaction ecosystem.

Deal Type	Frequency	Examples
REIT M&A	Moderate	REIT consolidation, take-privates
Capital raises	Very High	REIT equity and debt offerings
Property transactions	High	Portfolio and individual asset sales
Developer financing	High	Project-level financing
Restructuring	Cyclical	Interest rate sensitivity

Valuation Methods

Real estate requires property-specific approaches.

NAV (Net Asset Value) based on property values minus liabilities.

Cap rates for property valuation: NOI / Property Value.

FFO/AFFO multiples for REITs: Funds from Operations replaces earnings.

Comparable property analysis using price per square foot, price per unit.

What Makes Real Estate Unique

Physical asset focus. Real estate is tangible. Understanding property markets, location dynamics, and property types matters.

Interest rate sensitivity. Real estate values move with rates. Refinancing risk and cost of capital are central concerns.

Local market expertise. Real estate is local. Markets in different cities perform differently.

REIT structure. REITs have special tax treatment and distribution requirements. Understanding the structure is essential.

Hours and Culture

Real estate banking is generally less intense than M&A-heavy groups.

Capital markets activity creates consistent but manageable workflow. M&A is episodic. The hours are often more predictable.

The culture tends toward the relationship-oriented. Real estate is a relationship business. Many bankers have real estate family backgrounds or prior real estate experience.

Exit Opportunities

Real estate provides specific exits:

Real estate PE (Blackstone Real Estate, Starwood Capital)
REIT investor relations and corporate development
Real estate debt funds
Property development companies
Real estate operating roles

Who Should Consider Real Estate

You're interested in property markets and real assets
You want more predictable hours
You're targeting real estate investing careers
You prefer tangible assets to abstract business models

Who Shouldn't

You find real estate boring
You want exposure to high-growth technology companies
You prefer operational business analysis to asset valuation

Restructuring

What It Covers

Restructuring is different—it's not industry-specific but situation-specific.

Out-of-court restructuring: Liability management, distressed M&A, creditor negotiations.

Bankruptcy advisory: Chapter 11 representation for debtors or creditors.

Distressed M&A: Acquiring companies in or near bankruptcy.

Special situations: Complex transactions requiring restructuring expertise.

Deal Types

Restructuring activity is counter-cyclical.

Deal Type	Frequency	Examples
Liability management	Moderate (rising)	Extending maturities, swapping debt
Chapter 11 bankruptcy	Cyclical	Formal bankruptcy proceedings
Distressed M&A	Cyclical	Buying assets from troubled companies
Creditor advisory	Cyclical	Representing bondholders or lenders

Valuation Methods

Restructuring requires different approaches.

Liquidation analysis comparing going-concern value to break-up value.

Waterfall analysis determining recovery by creditor class.

Enterprise value in distress considering normalized earnings and exit multiples.

Debt trading analysis understanding distressed debt markets and pricing.

What Makes Restructuring Unique

Counter-cyclical. Restructuring thrives when other groups suffer. Recessions mean more work.

Legal complexity. Bankruptcy law, credit agreements, intercreditor dynamics—legal knowledge matters.

Different client set. You often work for creditors, not companies. The incentives and dynamics differ.

Career stability concerns. Restructuring hiring expands during downturns and contracts during growth. The cyclicality affects career planning.

Hours and Culture

Restructuring hours swing dramatically. Quiet during good economies. Extremely intense during distress cycles.

The culture tends toward the intellectually aggressive. Restructuring bankers enjoy complexity and conflict. The work involves adversarial negotiations alongside advisory.

Exit Opportunities

Restructuring provides unique exits:

Distressed debt funds (Oaktree, Apollo)
Restructuring-focused PE
Turnaround consulting
Law firms (some move to restructuring law)
Credit-focused hedge funds

Who Should Consider Restructuring

You enjoy complexity and problem-solving under pressure
Counter-cyclical exposure appeals to you
You're interested in credit and distressed investing
You want differentiated, specialized skills

Who Shouldn't

You want consistent, predictable deal flow
Adversarial situations stress you out
You prefer growth-oriented, optimistic narratives

How to Choose Your Sector

Questions to Ask Yourself

What industries interest you? You'll spend thousands of hours learning this sector. Interest matters.

What skills do you want to develop? TMT builds high-growth valuation skills. Healthcare builds scientific literacy. FIG builds balance sheet expertise.

What exits do you want? Sector choice directly affects exit opportunities. Choose with your future in mind.

What work environment suits you? Some sectors are more intense. Some are more relationship-driven. Some are more technical.

The Reality of Choice

You may not get to choose. Banks hire into groups based on their needs. You might prefer TMT but get placed in Industrials.

If placed in a sector you didn't choose:

Give it a fair chance—interest often develops
Lateral internally after a year if possible
Remember that exits aren't fully constrained by sector

Generalist vs. Specialist

Some banks have generalist analyst programs. You rotate through sectors before specializing.

Generalist advantages: Broader exposure, more time to find your fit, flexibility.

Specialist advantages: Deeper expertise earlier, clearer exit positioning, potentially stronger client relationships.

Neither is universally better. It depends on your certainty about your interests.

The Bottom Line

Sectors aren't just organizational buckets. They shape your banking experience fundamentally.

Each sector has its own deals, valuations, culture, hours, and exits. The right sector makes banking more interesting and positions you for the future you want. The wrong sector makes two years feel much longer.

Research before you recruit. Ask sector-specific questions in interviews. If you have preferences, express them.

Your sector choice is one of the few things you can influence. Use that influence wisely.