College finance clubs have become a gateway to Wall Street careers, and the process for joining can be as cutthroat as the industry itself. These are extracurricular, student-run groups — like a chess club or drama society — that come with names like the “investing banking club” or the “finance club.” Some run full-fledged investment funds, while others are Greek fraternities that recruit students majoring in business, finance, marketing, or accounting. What distinguishes them is that they tend to offer their members VIP access to campus recruiters, specialized training sessions, and other tools to help students snag the all-important investment banking internship, which is the best path to a full-time job after graduation. The catch? Their perks have created a race for membership, and the admissions process to join a club can be as cutthroat as the industry itself. The clubs help Wall Street employers by creating a clear pipeline of job candidates, and firms have been known to cater to them as a result. While it’s unclear exactly when these clubs became must-haves for a Wall Street job, the people who spoke with BI tended to agree that the situation reflected a race among employers to recruit talent earlier and earlier. To be sure, the club scene has long been exclusive. From the “eating clubs” at Princeton to the average sorority, organizations will choose members based on social interactions, pedigree, and background. What makes the financial and business clubs different is that they are less about making friends or exploring new interests and more about your résumé. This has led to a degree of meritocracy, with the clubs requiring wannabe members to prove they have enough know-how and genuine interest to join. Club leaders from three schools told that their organizations accepted less than 10% of their freshman applicants, who numbered 150 to 300 in recent years. The interest makes sense. Members get exclusive exposure to the industry, including training and tips from upperclassmen who have already gone through Wall Street’s rigorous internship application process. Some clubs give their members real money to manage — whether a percentage of the university’s endowment or capital from members and alumni. It’s hypercompetitive, it’s overwhelming, and you have to be pushing constantly. Firm recruiters often interact with student clubs, granting members special access to meetings and events. The hedge fund Balyasny went to campus clubs to find candidates for its recent stock pitch competitions, which it uses to identify talent. A private equity worker, meanwhile, said the “No. 1 thing” she looked for when she was a recruiting captain of an investment bank was whether students from her alma mater had been members of “the two most prestigious investment clubs on campus.” While the pressure these young people face may feel exaggerated, there are plenty of signs that the stakes are all too real. Wall Street firms like Goldman Sachs have disclosed record levels of applicants to their internship programs. And Wall Street’s earlier-than-ever recruiting schedule compelled Steve Sibley, a professor at Indiana University’s Kelley School of Business, to move an introductory corporate finance class he runs from the fall of students’ sophomore year to the spring of their freshman year. The end result has been a club culture that often mimics the industry itself, including a cutthroat selection process.