This division’s fundamental role is to advise corporates, governments, high net-worth individuals (or families) and other institutions on corporate finance matters, most notably mergers and acquisitions (M&A), the equity capital markets (ECM) and the debt capital markets (DCM). The Investment Banking Division (IBD) may also offer services such as liability management, risk hedging, derivatives advice and restructuring. On a typical deal, bankers work with companies to assess their options.
Most banks split teams into service categories (for instance governments, institutional investors, corporations and high net-worth individuals), whilst also having sector teams in parallel. Sector teams focus on products in a particular sector and tend to have expertise relating to the operations of companies within their allocated sector. Typical sectors in a bank include:
- Natural Resources: Oil & Gas; Metals & Mining; Power & Utilities
- Industrials: Business Services; Infrastructure; Aerospace; Defence
- Financial Institutions Group (FIG): Banks; Insurers; Asset Managers; Speciality Finance
- Consumer & Retail
- Technology, Media & Telecommunications (TMT)
- Real Estate
- Leisure, Hotels & Gaming
Product teams will be drafted in to help with deal execution. Product teams will be well versed in the ins and outs of these processes, including the allocation of tasks to external advisors (see the Key Parties Involved section of this guide). The main product teams are:
- Mergers & Acquisitions (M&A): these teams advise clients looking to acquire or sell companies.
- Equity Capital Markets (ECM): these teams advise companies looking to issue shares on a stock exchange.
Debt Capital Markets (DCM): these teams advise companies looking to issue debt (for instance bonds).
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By Jake Schogger - City Career Series