Investment banking
BankingDefinition
Banking activities focused on capital markets transactions: M&A advisory, equity/debt underwriting, restructuring, leveraged finance. Major firms: Goldman Sachs, Morgan Stanley, JPMorgan, Citi, BofA, Evercore, Lazard, PJT.
Fees: M&A 0.5-2% of deal value; equity underwriting 5-7% of proceeds; debt underwriting 0.5-1.5%. Highly cyclical — IB fees fell 50%+ in 2022-2023, recovered partially in 2024-2025.
Fees: M&A 0.5-2% of deal value; equity underwriting 5-7% of proceeds; debt underwriting 0.5-1.5%. Highly cyclical — IB fees fell 50%+ in 2022-2023, recovered partially in 2024-2025.