Investment Bank

Types?
What is Investment Bank? 01
IBs are intermediaries or advisors to parties
who want to raise funds, sell/buy divisions,
and to parties with surplus funds.

It is a bank that provides advisory services to

large corporations, govts, institutions, etc

They can be on the buy/sell side of the

transaction although they do provide various
other services M&A, ECM, DCM, etc.

They act as a bridge between both the

parties and help to go through the process
seamlessly.
1. Bulge Bracket Banks 02
Bulge Bracket Banks (BBB) are the largest and
most prestigious on Wall Street serving
MNCs, Multiple Funds, Governments and
Institutional clients.

Highest in terms of presence in global financial

hubs and employees, handling largest deals
and corporate clients.

Pays a bit fat paycheque but tough nut to

crack, Hires only from target schools of each
nation.
2. Domestic / Regional Banks 03
Investment Banking arm of the major
commercial banks in a country.

The deal size is big enough and you get to

work in different departments.

These banks operate on a smaller scale

compared to BBB and focus on serving clients
within a specific region or market segment.
3. Mid-Market Banks 04
IBs operate at a smaller scale than BBB from a
deals perspective and don't operate in almost
geographies.

There isn’t a hardcore size for defining mid-

market deals, but below $500mm is taken as
mid-market deals
4. Boutique Banks 05
Banks tend to focus on fewer transactions
and are specialized in providing niched
services in a particular sector, sectors,
industries and services.

Some focus only on capital restructuring while

some on transaction advisory services (M&A).

They can be global and domestic as well and

operate in mid-market (500mm) and also on
big deals (>1bn).
5. Big Fours 06
Investment banking department of the Big 4s
providing deals and transactions advisory
services.

They are similar to regional and are relatively

new in the sector whereas EY is dominant in
India.

Deal size is big enough and you get to work on

different departments.
Posts every alternate Day Faizan Nezami

Want more cool insights?

Then Follow