Types of investment banking

Investment banking is a distinctive segment of banking that facilitates individuals or organizations in providing financial consultancy services and in raising capital. They function as intermediaries between security issuers and investors as well as help new firms to go public.

1. Bulge Bracket

Voluminous and multi-national, Bulge brackets is the biggest category of investment banking companies. They provide full-fledged underwriting services,asset management, sales and trading, advisory and other related services. More often than not they deal in crores. We’re talking Deutsche Bank, Goldman Sachs, Morgan Stanley,  Barclays Capital and the likes.

2.                   Elite Boutique

Relatively smaller but yet very large, Elite Boutiques handle multi-billion-dollar transactions across many regions or even countries. However, they mostly have comparatively lesser employees than the bulge bracket banks and will a lot of times choose to focus on a specific sector and/or service; not that they can’t or wouldn’t provide a full range of services.

3.                   Regional Boutique

Regional bouquets are smallest investment banks that operate in concentrated regions. Even with a small size and the lack of full-fledged services, they assist in humongous deals. These usually provide their services to smaller firms. However, they may be called upon by large corporations with headquarters in their geographic area.

4.                   Middle Market

 

They are financial institutions or intermediaries that deal mostly with mid-market firms, specifically for raising debt or equity capital, as well as mergers and acquisitions.Some middle market banks are full-service, while others specialize in one particular service. Although the line between regional and middle market can at times be indistinct because middle market banks will handle regional deals.

 

Avendus is a leading financial services firm, offering bespoke solutions in the areas of investment banking among services. Its wide range of clients is a testimony to its ability to serve its corporate clients throughout their life cycle – from growth stage funding to complex, large sized transactions later in the cycle.