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Is a master’s degree worth It for finance?
A breakdown of whether a master’s degree is needed for a career in finance
Investor Briefcase
February 27, 2025
Finance is a tough industry to break into. Top firms hire from a small group of elite universities, and competition is fierce. A master’s in finance or an MBA can seem like the best way to get in. But even for candidates from target schools, is the investment in a master’s really worth it?
This week, we break down the value of a master’s degree in finance by looking at both acceptance rates at top firms and salaries:
📚 The benefits and trade-offs
🏦 How a master’s impacts job placement at top firms
💰 Salary differences with and without a master’s
⚖️ The Pros and Cons
— Investor Briefcase Team
Finance is an industry where performance and experience often outweigh formal credentials. Unlike law or medicine, where advanced degrees are mandatory, finance has long favored candidates based on their network and real-world experience. However, a master’s degree can offer key advantages.
One of the biggest benefits of a top finance program is direct access to recruitment pipelines. Business schools known for their finance programs like Wharton, HEC, Columbia, MIT and London Business School have strong placement rates. These programs have top firms like Goldman Sachs, Morgan Stanley, and Blackstone actively recruiting. This gives students with a bachelor’s degree from a non-target undergrad a much-needed entry point.
For career changers or those from non-target schools, a master’s degree can serve as a reset, providing structured training and stronger networking opportunities. It can also accelerate career progression, allowing candidates to enter directly into associate roles instead of starting as analysts. However, the cost, time commitment, and opportunity cost of lost work experience make it a significant investment.
We decided to have a look at the data and break down the real impact of a master’s on acceptance rates and salary potential.
Finance roles at top firms are brutally competitive, with acceptance rates often below 2%. A master’s degree can improve your odds, but its impact depends on the role and firm.
Master’s vs. Non-Master’s Placement Rates by Industry
With Master’s | Without Master’s | |
|---|---|---|
Investment Banking | 15% - 30% | 1% - 3% |
Private Equity | 10% - 20% | <1% |
Corporate Finance | 30% - 40% | 15% - 25% |
Who’s Hiring Master’s Grads?
Bulge Brackets (Goldman Sachs, J.P. Morgan) primarily hire analysts from undergrad pools. However, 10-15% of direct associates hold master’s degrees.
Elite Boutiques (Evercore, Moelis) value technical expertise, with 30-40% of hires coming from master’s programs.
Private Equity Giants (Blackstone, KKR, Carlyle) rarely recruit directly without prior IB experience, but Bain Capital and TPG actively hire from top MBA programs.
Best Master’s Programs for Finance Placement
University | % of Graduates Placed in Finance | Top Firms Hiring |
|---|---|---|
Wharton (MBA) | 40%+ | Goldman Sachs, Blackstone, Bain Capital |
London Business School (MFin) | 45%+ | J.P. Morgan, Evercore, Carlyle |
MIT Sloan (MFin) | 50%+ | Morgan Stanley, Citadel, KKR |
Columbia Business School (MBA) | 35%+ | Goldman Sachs, TPG, BlackRock |
HEC Paris (MFin) | 40%+ | Lazard, Rothschild, Bain Capital |
NYU Stern (MBA) | 30%+ | Evercore, Apollo, Bridgewater |
For candidates from non-target undergraduate schools, a master’s significantly increases the likelihood of landing roles at top firms. However, strong networking, internships, and technical skills remain crucial.
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A master’s degree boosts earning potential, but the financial benefits depend on industry, firm, and career trajectory. Graduates with an MFin or MBA typically earn higher starting salaries and see faster promotions at top firms, particularly in investment banking and private equity.
Average salaries in finance with vs without master’s
At top firms like Goldman Sachs and J.P. Morgan, analysts start at $150K to $180K, while MBA-hired associates earn $170K to $200K. Private equity firms such as Blackstone and KKR offer $250K to $400K for entry-level associates. Corporate finance roles at companies like Apple and General Electric pay $90K to $120K, rising to $110K to $140K with a master’s, though career growth is slower.
While a master’s accelerates promotions and raises earning potential, tuition costs $100K to $150K, plus lost income during study. The strongest financial returns come in investment banking and private equity, where early career gains compound over time. Candidates with strong undergrad credentials and experience may reach similar roles without the added expense. The decision depends on career goals and whether the degree offers a distinct competitive edge for the specific firms you want to be recruited into.
A master’s opens doors, but it doesn’t walk you through them. Strong networks, experience, and technical skills still make the difference in landing top finance roles.
Pros | Cons |
|---|---|
Higher salaries – Faster career progression | Expensive – Tuition costs $100K+ |
Better job placement – Strong recruitment pipelines | Not always necessary – Many finance professionals succeed without one |
Skill development – Financial modeling and deal-making expertise | Delays work experience – Two years in school instead of learning on the job |
Fast-track promotions – Associates in IB, a partner track in PE | Depends on industry – Some firms prioritize experience over education |
The best approach depends on career goals:
If targeting bulge bracket investment banks, a master’s is helpful but not essential.
If aiming for private equity, an MBA from a top school is often required.
If considering corporate finance, a master’s helps but is not always necessary for career growth.
For some, a master’s opens doors to elite finance roles. For others, on-the-job experience and networking provide a more efficient path.
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Major Finance Companies That Hire Without a Master’s
> Goldman Sachs (Analyst Program): Goldman Sachs hires undergraduate students into its analyst program, which is a common entry point for a long-term finance career. The firm prioritizes candidates with strong quantitative, analytical, and problem-solving skills, often from top universities.
> J.P. Morgan (Global Finance & Business Management Analyst Program): J.P. Morgan’s entry-level analyst roles in investment banking, asset management, and risk management are open to bachelor’s degree holders. The firm focuses on leadership potential and technical acumen rather than requiring a master’s degree.
> Morgan Stanley (Investment Banking Analyst Program): Morgan Stanley recruits graduates directly into its analyst program, providing them with hands-on experience in financial modeling, client advisory, and capital markets. A master’s degree is not required for entry-level roles.
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