Investment banking

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Definition

What is Investment Banking?

Investment Banking encompasses the many different wholesale services related to a client’s equity transactions. An investment bank's clients are typically companies, financial institutions, investment funds and public entities.

Which banking expertise are involved in Investment Banking?

Investment Banking generally involves the following departments:

Mergers & Acquisitions (M&A) advises clients on the acquisition, sale or merger of companies;
Equity Capital Markets (ECM) assists with equity or quasi-equity issuing on the stock market, and sales of equity interests;
Debt Capital Markets (DCM) arranges public or private debt issues subscribed by market investors;
Leveraged Finance finances LBO transactions;
Acquisition Finance finances large corporate acquisition transactions.

How do these Investment Banking departments work together?

They collaborate to advise and finance debt and equity, structuring deals for their clients. This multi-service offering addresses most of the financial needs of clients for such transactions. It is coordinated by the Coverage team, which manages the entire client relationship.