List of investment banks: Companies and Services Compared

Investment banks are financial institutions that help clients raise capital, advise on strategic decisions, and manage financial transactions. They offer a range of services, including mergers and acquisitions, equity and debt financing, and advisory services.

Some of the top investment banks include Goldman Sachs, Morgan Stanley, and J.P. Morgan. These banks have a global presence and offer a wide range of services to their clients.

Goldman Sachs is known for its expertise in mergers and acquisitions, having advised on some of the largest deals in history. Morgan Stanley, on the other hand, is a leading player in the equity and debt financing market.

Investment banks can be categorized into several groups based on their size, services offered, and focus. The largest global banks are known as Bulge Bracket Investment Banks (BBs), which operate in all regions and offer a wide range of services, including mergers and acquisitions, equity and debt issuances, and research.

These banks tend to work on the largest deals, typically above $1 billion USD in size. Some of the top Bulge Bracket Investment Banks include JP Morgan, Goldman Sachs, and Morgan Stanley. They also have sales & trading, wealth management, and other financial services.

There are also smaller banks that specialize in specific areas, such as Industry-Specific Boutiques (ISBs) and Regional Boutique Banks (RBs). Industry-Specific Boutiques focus on a particular industry, such as healthcare or fintech, and work with individual companies on an ongoing basis. Examples of Industry-Specific Boutiques include Leerink (Healthcare) and FT Partners (Fintech).

Here's a breakdown of the different categories of investment banks:

Industry-Specific Boutique Banks (ISBs) are firms that focus on one specific industry, such as healthcare or technology, media, and telecommunications (TMT).

These firms work on M&A advisory deals within their industry, often with a smaller geographical footprint than bulge bracket or elite boutique banks.

Deals are often comparable in size to those worked on by middle market banks, but this can vary based on the reputation of the boutique.

For example, Leerink, a top healthcare boutique, has mostly worked on equity and M&A deals for less than $500 million USD, with a few larger M&A deals.

It's tougher to win traditional exit opportunities from these banks, as they tend to favor internal promotions and keeping Analysts and Associates around for the long term.

Financial conglomerates are large financial institutions that offer a wide range of services, including commercial banking, investment banking, and sometimes insurance. These combinations were once common in Europe but were illegal in the United States before the passage of the Gramm-Leach-Bliley Act of 1999.

Some notable financial conglomerates include ABN AMRO, Banco Santander, and Bank of China, which all offer investment banking services in addition to their other financial services. These conglomerates have expanded their reach through mergers and acquisitions, allowing them to offer a broader range of services to their clients.

Large financial institutions like Bank of China and Bank of Communications have their own investment banking arms, such as BOC International Holdings and BOCOM International Holdings. These subsidiaries provide investment banking services to clients around the world.

Here are some notable financial conglomerates with investment banking arms:

There are two main types of investment banks: bulge bracket banks and middle market investment banks.

Bulge bracket banks, which include giants like JPMorgan Chase and Goldman Sachs, underwrite the majority of financial transactions in the world.

The largest investment banks, such as JPMorgan Chase and Goldman Sachs, are considered among the bulge bracket banks.

Here are some examples of bulge bracket banks:

Middle market investment banks, also known as boutique or independent investment banks, focus on smaller-sized deals with comparable profitability.

In-Between-a-Banks, or IBABs, are firms that excel in one specific product, like debt, but don't have a strong presence in other areas.

Wells Fargo is a classic example of an IBAB, strong in debt but lacking in M&A advisory business.

IBABs tend to work on smaller deals than bulge bracket banks but bigger than middle market and boutique banks.

Many IBABs are strong in one region, such as Europe for French banks or Japan for Japanese banks.

IBABs can offer traditional exit opportunities, but fewer analysts get into the largest buy-side funds.

Analysts from IBABs often move to other banks, smaller funds, or normal companies.

Here's a brief comparison of the different types of banks:

Middle Market banks, like Jefferies, work on smaller deals, mostly below $1 billion. They offer a variety of services and have a wide geographical presence.

You can exit to private equity firms and hedge funds coming from these firms, but it's more difficult because Analysts at the BBs, IBABs, and EBs tend to get priority. The buy-side recruiting process at mid-sized-to-large-funds moves insanely quickly, and it's tough to get "plugged in" if you're at a smaller bank.

Smaller private equity fund or hedge fund that uses off-cycle recruiting is a likely exit opportunity from Middle Market banks. Corporate development or corporate finance at a normal company is another possible exit route.

Here are some possible exit opportunities from Middle Market banks:

Underwriting is a crucial part of investment banking, where banks help businesses raise capital by marketing them to investors.

There are three types of underwriting: Firm Commitment, Best Efforts, and All-or-None, each with its own level of financial responsibility.

In a Firm Commitment, the underwriter takes on full financial responsibility for any unsold shares, while in a Best Efforts, they can return unsold shares to the issuer without financial responsibility.

Corporate Finance is a crucial aspect of investment banking, focusing on helping companies raise capital, advise on mergers and acquisitions, and restructure their finances.

It's often divided into Product Groups and Industry Groups. Product Groups specialize in specific deal types, such as equity or debt issuances, while Industry Groups focus on multiple deal types within a specific industry.

Product Groups include Mergers & Acquisitions, Debt Capital Markets, Equity Capital Markets, Leveraged Finance, and Restructuring. These groups work across various industries to help companies achieve their financial goals.

Industry Groups, on the other hand, specialize in specific industries, such as Real Estate, Healthcare, Technology, Media & Telecom, and Financial Institutions. They often work with individual companies in those industries on an ongoing basis.

Here's a breakdown of some examples of Industry Groups:

Corporate Finance is a complex and multifaceted field, requiring expertise in various areas, including capital raising, M&A, and restructuring. Investment banks employ professionals with high professional acumen to provide top-notch services to their clients.

Sales and Trading is a crucial division at investment banks that helps institutional investor clients buy and sell securities. These clients include hedge funds, asset management firms, pension funds, endowments, insurance firms, and wealthy individuals.

The Sales and Trading group at an investment bank is responsible for executing large orders that would otherwise disrupt market prices. They divide up these orders, match buyers and sellers, and get clients prices that are as close as possible to what they desire.

The two main divisions within Sales and Trading are Equity Trading and Fixed Income Trading, or FICC. Equity Trading primarily deals with companies' stocks and their derivatives, such as options, while FICC covers everything else, including rates, municipal bonds, corporate bonds, CDS, FX, commodities, money markets, and more.

These divisions work together to help clients earn a high return and make more money for their clients, also known as their Limited Partners, or LPs.

Research plays a crucial role in bank services, and it's not just about issuing reports to encourage trading volume. Historically, banks used research reports to solicit orders from institutional investors for the sales & trading division.

Banks may use research for internal purposes, such as for salespeople who want to recommend ideas to clients or for investment bankers who want to read up on companies in a specific sector.

Regulations have changed the role of research, and institutional clients increasingly pay for research reports directly, especially in Europe due to MiFID II.

This shift has impacted the way banks approach research, and it's now more focused on providing valuable insights to clients rather than just generating trading volume.

We focus on equity research on this site, which involves analyzing and recommending stocks, but there's also fixed income research, which involves analyzing and recommending bonds and other debt instruments.

Institutional clients are willing to pay for high-quality research, and banks are responding by providing more in-depth analysis and insights.

Financial Operations play a crucial role in the banking industry, and understanding the different types of roles can help you navigate your career. Middle Office and Back Office roles support the bank's operations, but they have distinct differences.

Middle Office roles focus on revenue generation, such as risk management and treasury, which enable front-office staff to do their jobs more effectively. This is a key aspect of a bank's operations.

The Back Office is responsible for processes and systems that exist regardless of revenue generated, including compliance, accounting, IT, and HR. These roles are essential to the bank's functioning.

It's worth noting that Middle Office and Back Office roles are often seen as a stepping stone to more senior positions. However, it can be challenging to switch out of these roles, especially in smaller markets. If you want to leave, it's best to do it early in your career.

If you're looking for a comfortable lifestyle and don't prioritize high compensation or career advancement, Middle Office and Back Office roles might be suitable for you.

Investment banks work with a wide range of clients, including governments, corporations, and institutions.

These clients can be located around the world, and investment banks help them raise money, trade securities, and buy or sell crown corporations. Governments, for example, work with investment banks to raise capital and trade securities.

Investment banks also work with corporations to help them go public, raise additional capital, and make acquisitions. They work with institutional investors to help them trade securities and provide research.

Here are some key types of clients that investment banks work with:

Investment banks work with a wide range of clients from around the world.

Their clients include governments, which they help raise money, trade securities, and buy or sell crown corporations.

Investment banks also work with corporations, providing them with services such as going public through an IPO, raising additional capital, and making acquisitions.

Corporations can be either private or public, and investment banks help them with various financial needs.

Institutions, such as institutional investors and private equity firms, are also among their clients.

These clients rely on investment banks for research and general corporate finance advice.

Investment banks help institutional investors trade securities and provide research to them.

They also work with private equity firms to help them acquire portfolio companies and exit those positions by either selling to a strategic buyer or via an IPO.

Investment banking requires a wide range of skills to be successful.

Financial modeling is a crucial skill, requiring the ability to build various types of financial models, such as 3-statement models, discounted cash flow (DCF) models, and leveraged buyout (LBO) models.

Business valuation is another key skill, involving the use of methods like comparable company analysis, precedent transactions, and DCF analysis.

Pitchbooks and presentations are essential for pitching ideas to prospective clients and winning new business.

Transaction documents, such as confidential information memorandums (CIMs) and term sheets, need to be prepared accurately.

Relationship management involves working with existing clients to successfully close deals and ensure client satisfaction.

Sales and business development require constant communication with prospective clients to pitch ideas and offer value-added advice.

Negotiation is a critical skill, involving the ability to negotiate between buyers and sellers in a transaction and help clients maximize value creation.

The following skills are required for investment banking:

The main investment banks, also known as bulge bracket banks, are the big players in the industry.

Bank of America Merrill Lynch is one of them, along with Barclays Capital and Citi.

Credit Suisse, Deutsche Bank, and Goldman Sachs are also part of this group.

J.P. Morgan and Morgan Stanley round out the list of main investment banks.

UBS is the final one, making up the top tier of investment banks.

Here's a list of the main investment banks:

Maple Capital Advisors is a leading Investment Bank of India, primarily engaged in Mergers & Acquisitions and Private Equity. They also offer other services like Corporate Advisory, Debt, and Real Estate Financing.

Established in 2001, Maple Capital Advisors is a mid-market Investment Banking Firm with its Headquarters in Bengaluru. Their extensive experience and expertise have earned them a spot among the top 10 Investment Banks of India based on the number of transactions.

MAPE Capital Advisors provides a wide range of services, including Mergers & Acquisitions, Private Equity, Corporate Advisory, Debt, and Real Estate Financing. Their diverse portfolio makes them a go-to choice for clients seeking comprehensive financial solutions.

If you're interested in working with MAPE Capital Advisors, you can check out their Careers page at http://www.mapegroup.com/careers.html for available positions and application instructions.