{
  "id": 38275,
  "date": "2021-11-23T11:00:00",
  "date_gmt": "2021-11-23T16:00:00",
  "guid": { "rendered": "https:\/\/finance-able.com\/?p=38275" },
  "modified": "2025-11-09T11:22:27",
  "modified_gmt": "2025-11-09T16:22:27",
  "slug": "what-is-an-investment-bank",
  "status": "publish",
  "type": "post",
  "link": "https:\/\/finance-able.com\/what-is-an-investment-bank\/",
  "title": { "rendered": "What Is An Investment Bank? – Ultimate Guide" },
  "content": {
    "rendered": "\n<p style=\"font-size:18.5px\"><strong>&#8216;What is an Investment Bank?&#8217; <\/strong>is a common question with a <strong>lot of confusing answers<\/strong>. In this <strong>visual, Plain-English guide<\/strong> we&#8217;ll walk you through all the ins and outs of <strong>all you need to know about Investment Banking<\/strong>.<\/p>\n\n\n\n<p class=\"yoast-reading-time__wrapper\"><span class=\"yoast-reading-time__icon\"><svg aria-hidden=\"true\" focusable=\"false\" data-icon=\"clock\" width=\"20\" height=\"20\" fill=\"none\" stroke=\"currentColor\" style=\"display:inline-block;vertical-align:-0.1em\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M12 8v4l3 3m6-3a9 9 0 11-18 0 9 9 0 0118 0z\"><\/path><\/svg><\/span><span class=\"yoast-reading-time__spacer\" style=\"display:inline-block;width:1em\"><\/span><span class=\"yoast-reading-time__descriptive-text\">Estimated reading time: <\/span><span class=\"yoast-reading-time__reading-time\">17<\/span><span class=\"yoast-reading-time__time-unit\"> minutes<\/span><\/p>\n\n\n\n<div style=\"height:5px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tl-dr\" style=\"font-size:35px\"><strong>TL;DR<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Investment Banks <\/strong>provide two main services: <strong>Advisory<\/strong> and <strong>Capital Raising (Debt &amp; Equity)<\/strong>.<\/li>\n\n\n\n<li><strong>Investment Bankers<\/strong> are like <strong>Real Estate Agents <\/strong>who help clients with the buying and selling of businesses (instead of houses).<\/li>\n\n\n\n<li>Internally, most <strong>Investment Banks <\/strong>are broken into two categories of groups: <strong>Industry \u2018Coverage\u2019 Groups <\/strong>and<strong> &#8216;Product&#8217; Execution Groups<\/strong>.<\/li>\n\n\n\n<li>The three primary categories of Investment Banks are: <strong>Bulge-Bracket<\/strong>, <strong>Elite Boutiques<\/strong>, and <strong>Middle-Market<\/strong><\/li>\n<\/ul>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Introduction: What is an Investment Bank?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer.png\" alt=\"A stick figure confused about how Investment Banks operate\" class=\"wp-image-38203\" style=\"width:750px;height:421px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/1-Researching-At-Computer-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">To an outsider, the inner workings of <strong>Investment<\/strong> <strong>Banks<\/strong> can seem <strong>quite confusing<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Investment Banks <\/strong>have <strong>numerous (and often overlapping!) internal divisions<\/strong> whose functions vary across different banks. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">It\u2019s no wonder that many people are <strong>left scratching their heads when they first learn<\/strong> about the <strong>Investment Banking industry<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">In this article, we\u2019ll de-mystify the inner workings of <strong>Investment Banks<\/strong>!<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>What is an Investment Bank? &#8211; The Big Picture View<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">Let&#8217;s start with a <strong>simple definition of Investment Banking<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><a href=\"https:\/\/finance-able.com\/investment-banking-career-path\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Investment Bankers<\/span><\/strong><\/a> are very similar to <strong>Real Estate Agents<\/strong>, but instead of helping clients buy (or sell) houses, they <strong>help with the buying and selling of entire Businesses<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Investment Bankers<\/strong> can also help clients raise <strong>Debt<\/strong> or <strong>Investor (\u2018Equity\u2019)<\/strong> <strong>Capital<\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions.png\" alt=\"An image summarizing the major Investment Banking services: M&amp;A,  Restructuring, Debt, Equity\" class=\"wp-image-38206\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/2-4-Functions-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">Below are the core services offered by an <strong>Investment Bank<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Advisory<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Mergers &amp; Acquisition (M&amp;A)<\/strong> \u2013 advise clients on the purchase or sale of a business.<\/li>\n\n\n\n<li><strong>Restructuring<\/strong> \u2013 advise clients when they run into financial challenges.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Capital Raising<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Debt<\/strong> \u2013 market the client\u2019s company to <strong>Lenders<\/strong> who offer money in the form of <strong>Loans<\/strong> or <strong>Bonds<\/strong>.<\/li>\n\n\n\n<li><strong>Equity <\/strong>&#8211; market the client\u2019s company to <strong>Investors<\/strong> who offer money in the form of <strong>Stock<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>What is an Investment Bank? &#8211; Bulge Bracket vs Elite Boutique vs Middle Market<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Investment Banks<\/strong> come in a variety of shapes and sizes. Banks range from one-person shops to firms with tens of thousands of employees. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">At a high level though, there are three types of <strong>Investment Banking<\/strong> firms:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Middle-Market (&#8216;MM&#8217;) Banks<\/strong> \u2013 provide <strong>Advisory<\/strong> as well as <strong>Debt <\/strong>and<strong> Equity Capita<\/strong>l raising services to small and medium-sized businesses.<\/li>\n\n\n\n<li><strong>Elite Boutiques<\/strong> \u2013 typically offer only <strong>Advisory<\/strong> services and focus on medium and large-sized businesses.<\/li>\n\n\n\n<li><strong>Bulge Bracket (&#8216;BB&#8217;) Banks<\/strong> \u2013 large, &#8216;full-service&#8217; banks that offer <strong>Advisory<\/strong> as well as <strong>Debt <\/strong>and<strong> Equity Capita<\/strong>l raising services to medium and large-sized businesses.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Below we&#8217;ve listed examples of Investment Banks<\/strong> that fit into each of these major categories.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<!-- This site is converting visitors into subscribers and customers with OptinMonster - https:\/\/optinmonster.com :: Campaign Title: What Is An Investment Bank? - Obfuscation -->\n<div id=\"om-thiiweag8ed0gnokn9aa-holder\"><\/div>\n<script>(function(d,u,ac){var s=d.createElement('script');s.type='text\/javascript';s.src='https:\/\/a.omappapi.com\/app\/js\/api.min.js';s.async=true;s.dataset.user=u;s.dataset.campaign=ac;d.getElementsByTagName('head')[0].appendChild(s);})(document,130718,'thiiweag8ed0gnokn9aa');<\/script>\n<!-- \/ OptinMonster -->\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1320\" height=\"620\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM.png\" alt=\"An image showing examples of Middle-Market Banks, Elite Boutiques, Bulge Bracket Investment Banks\" class=\"wp-image-38208\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM.png 1320w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-300x141.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-1024x481.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-768x361.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-400x188.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-624x293.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-50x23.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/3-BB-vs-EB-vs-MM-100x47.png 100w\" sizes=\"auto, (max-width: 1320px) 100vw, 1320px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">While you may find some corner cases that don\u2019t neatly fit into these buckets, these three are the primary categories of <strong>Investment Banks<\/strong>.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Industry \u2018Coverage\u2019 Groups vs Product \u2018Execution\u2019 Groups<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">Now let&#8217;s look at the <strong>internal Investment Bank department structure<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">And in particular, <strong>what Investment Bankers do within each department<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Internally, most banks are broken down into groups with a particular focus area. The <strong>two major categories of groups within an Investment Bank <\/strong>are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Industry \u2018Coverage\u2019 Groups<\/strong> \u2013 sector specialists that focus on a particular industry (e.g., Industrials, Consumer, etc.) without specializing in one particular type of transaction.<\/li>\n\n\n\n<li><strong>\u2018Product\u2019 Execution Groups<\/strong> \u2013 execute a particular type of transaction (e.g., Mergers &amp; Acquisitions, Leveraged Finance, Equity Capital Markets, etc.).<\/li>\n<\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry.png\" alt=\"An image showing two stick figures representing Product Investment Bankers and Industry Coverage Investment Bankers\" class=\"wp-image-38210\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/4-Product-vs-Industry-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">As we\u2019ll see shortly, the <strong>delineations between these two categories aren\u2019t always clear cut<\/strong>, but these two categories are a solid foundation for understanding how <strong>Investment Banks<\/strong> work.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"kt-adv-heading38275_47422e-71 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading38275_47422e-71\"><strong>Industry &#8216;Coverage&#8217; Investment Banker Responsibilities<\/strong><\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups.png\" alt=\"Sample clients of Industry Coverage Investment Bankers and typical naming conventions for Investment Bank Coverage Groups\" class=\"wp-image-38212\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/5-Industry-Groups-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">Although <strong>coverage group naming conventions do vary<\/strong>, the categories in the <strong>image above show the most common names<\/strong> for product groups as well as sample clients for each group.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>&#8216;Coverage&#8217; Bankers<\/strong> in these groups <strong>focus on a single sector <\/strong>so that they can be an expert advisor to their clients.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">To succeed as an <strong>Industry Banker<\/strong>, you need to understand <strong><u>ALL<\/u><\/strong> the trends across an industry. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Industry Bankers<\/strong> use their expertise to build relationships with <strong><a href=\"https:\/\/www.inc.com\/stephanie-chung\/10-personality-traits-every-ceo-should-have.html\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">company CEOs<\/span><\/a> <\/strong>within their coverage universe.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Junior Bankers<\/strong> in these groups follow industry trends and keep a close eye on everything from secular trends and core company fundamentals to valuations and recent <a href=\"https:\/\/www.dummies.com\/business\/corporate-finance\/mergers-and-acquisitions\/ma-business-brokers-and-investment-bankers\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">merger and acquisition<\/span><\/strong><\/a> activities in their sector.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Junior Bankers<\/strong> in a <strong>\u2018Coverage\u2019<\/strong> <strong>Group<\/strong> go very deep within an industry. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, they are <strong>often less likely to play an active role in the nuts and bolts<\/strong> (modeling, process management, material creation, etc.) of executing deals. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">As we\u2019ll see shortly though, this<strong> can vary quite a bit, depending on the bank<\/strong>.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns containerwidth is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><div class=\"kb-row-layout-wrap kb-row-layout-id38275_240e24-34 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-1-columns kt-row-layout-equal kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n\n<div class=\"wp-block-kadence-column kadence-column38275_d9f939-df\"><div class=\"kt-inside-inner-col\">\n<h2 class=\"wp-block-heading\" id=\"h-want-to-learn-more-about-finance\" style=\"font-size:35px\"><strong>Want To Learn More About Finance?<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18px\"><strong>Check out all of our (free) deep-dive articles in our<\/strong> <a href=\"https:\/\/finance-able.com\/analyst-starter-kit\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Analyst Starter Kit<\/span><\/strong><\/a>:<\/p>\n\n\n<div class=\" wp-block-kadence-portfoliogrid kb-blocks-portfolio-loop-block alignnone kb-portfolio-loop38275_4efe31-52 kb-portfolio-grid-layout-carousel kt-blocks-carousel \"><div class=\" kb-portfolio-grid-layout-carousel-wrap kt-post-grid-layout-carousel-wrap kt-carousel-arrowstyle-whiteondark kt-carousel-dotstyle-dark splide kb-blocks-portfolio-img-hover-zoomout kb-blocks-portfolio-content-hover-zoomin\" data-columns-xxl=\"3\" data-columns-xl=\"3\" data-columns-md=\"3\" data-columns-sm=\"2\" data-columns-xs=\"1\" data-columns-ss=\"1\" data-slider-center-mode=\"false\" data-slider-type=\"carousel\" data-slider-anim-speed=\"400\" data-slider-scroll=\"1\" data-slider-dots=\"true\" data-slider-arrows=\"true\" data-slider-hover-pause=\"false\" data-slider-auto=\"true\" data-slider-center-mode=\"false\" data-slider-speed=\"7000\" data-show-pause-button=\"false\" data-slider-gap=\"30\" data-slider-gap-tablet=\"30\" data-slider-gap-mobile=\"30\" data-slider-gap-unit=\"px\" data-item-selector=\".kb-portfolio-masonry-item\"><div class=\"kadence-splide-slider-init splide__track\"><ul><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"An image of a lightbulb with the text Unlevered Beta Formula\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/unlevered-beta-formula\/\" aria-label=\"Unlevered Beta Formula &#8211; Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Unlevered Beta Formula &#8211; Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"A lightbulb and the words Purchase Price Allocation\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/purchase-price-allocation\/\" aria-label=\"Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:45.138888888889%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"325\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png\" class=\"attachment-large size-large wp-post-image\" alt=\": A stick figure answering an interview question with the title text &#039;Walk Me Through an LBO&#039; below\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-300x135.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-400x181.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-624x282.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-50x23.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-100x45.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\" aria-label=\"Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><\/ul><\/div><div class=\"clearfix\" style=\"clear:both\"><\/div><\/div><\/div><\/div><\/div>\n\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"kt-adv-heading38275_494c08-32 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading38275_494c08-32\">&#8216;<strong>Product&#8217; Execution Investment Banker Responsibilities<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">&#8216;<strong>Product&#8217; Bankers<\/strong> focus on <strong>executing a particular type of transaction<\/strong> (e.g. M&amp;A, <a href=\"https:\/\/medium.com\/banking-at-michigan\/restructuring-investment-banking-what-is-it-509340715ffd\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Restructuring<\/span><\/strong><\/a>, etc.), which is what they do all day every day. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">These bankers are <strong>often brought in after a deal is signed<\/strong> (i.e., the client has agreed to work with the bank). <\/p>\n\n\n\n<p style=\"font-size:18.5px\">While they <strong>typically aren\u2019t experts in a particular industry<\/strong>, they are deeply knowledgeable about the intricacies of executing deals which makes their input highly valuable.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2.png\" alt=\"An image showing the contrasting names of Product Groups and Industry coverage groups within an Investment Bank\" class=\"wp-image-38215\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/6-Product-vs-Industry-2-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Junior Bankers<\/strong> in a <strong>\u2018Product\u2019<\/strong> <strong>Group<\/strong> are typically responsible for creating and managing all of the analyses and presentations that support the deal process. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Typical tasks can range from internal memos to detailed multi-tab financial models <\/strong>that lay out a company\u2019s projected performance in significant detail. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><a href=\"https:\/\/www.investopedia.com\/articles\/professionals\/111715\/day-life-investment-banker.asp\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Junior Bankers<\/span><\/strong><\/a> in these groups often receive a more <strong>\u2018<em>Technical<\/em>\u2019<\/strong> experience, which can lead to <strong>better exit opportunities when the banker leaves the firm<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Because of the <strong>better exit opportunities<\/strong>, these groups (particularly <strong>M&amp;A<\/strong> and <strong>Financial Sponsors<\/strong>) are often highly sought after.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Again though, the internal group structure of particular <strong>Investment Banks<\/strong> does vary, which can dramatically change the type of experience for <strong>Junior Bankers<\/strong> in <strong>&#8216;Product&#8217; Groups<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Let\u2019s dive into the details below for each type of <strong>Product Banker<\/strong>.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" style=\"font-size:25px\"><strong>Product Group #1: M&amp;A Advisory<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">The first type of <strong>Product Banke<\/strong>r is a <a href=\"https:\/\/www.investopedia.com\/terms\/m\/mergersandacquisitions.asp\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Mergers &amp; Acquisitions<\/strong><\/span><\/a> (or <strong>M&amp;A <\/strong>for short) <strong>Banker<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This group is <strong>often viewed as the sexiest group within an Investment Bank <\/strong>because they work on industry-transforming deals that end up on the front page of publications like the Wall Street Journal.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA.png\" alt=\"An M&amp;A Banker offering buy side and sell side M&amp;A advisory services\" class=\"wp-image-38217\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/7-MA-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\"><strong>M&amp;A Bankers<\/strong> typically work on one of two types of projects:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Buy-Side M&amp;A<\/strong> \u2013 advise clients on the purchase of a business.<\/li>\n\n\n\n<li><strong>Sell-Side M&amp;A<\/strong> \u2013 advise clients on the sale of part or all of the client\u2019s business.<\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:18.5px\">M&amp;A is a <strong>non-stop, high-intensity profession<\/strong>. As a result, this group is often one of the hardest working groups within a bank.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" style=\"font-size:25px\"><strong>Product Group #2: Restructuring Advisory<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">The next <strong>Product Banker<\/strong> is a <strong>Restructuring Banker<\/strong>. These bankers are brought in when a company is in financial distress.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring.png\" alt=\"A Restructuring Banker offering to help clients in Financial Distress\" class=\"wp-image-38219\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/8-Restructuring-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">While there\u2019s <strong>quite a bit of nuance behind what these bankers do<\/strong>, but to keep it simple, we can equate this back to the Real Estate analogy from earlier in the article.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">If the <strong>value of a home declines below<\/strong> the <strong>value of the Mortgage<\/strong>, we would say that the home is <strong>\u2018<em>underwater<\/em>.\u2019 <\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">When the value of a business declines below the value of its <strong>Debt<\/strong>, we would call the firm <strong><em>\u2018distressed\u2019.<\/em><\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">In short, <strong>Restructuring Bankers<\/strong> work with companies that are in financial <strong>\u2018distress\u2019<\/strong> and help them find an amicable agreement between the various investors and lenders involved with the company.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" style=\"font-size:25px\"><strong>Product Group #3: Debt Bankers<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">The next category of <strong>Product Banker<\/strong> is a <strong>Debt Banker<\/strong>. These bankers help companies raise <strong><a href=\"https:\/\/smallbusiness.chron.com\/advantages-using-debt-capital-structure-22011.html\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Debt Capital<\/span><\/a><\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt.png\" alt=\"A Debt Banker offering to raise different types of debt for clients\" class=\"wp-image-38220\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/9-Debt-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">Depending on the financial profile of the client, they will work with one of three <strong>Debt<\/strong> groups:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Debt Capital Markets (\u2018DCM\u2019)<\/strong> \u2013 serves high-quality (or <strong>&#8216;Investment Grade&#8217;<\/strong>) companies with low levels of <strong>Debt<\/strong>.<\/li>\n\n\n\n<li><strong>Leveraged Finance<\/strong> <strong>(\u2018Lev Fin\u2019)<\/strong> \u2013 serves lower-quality companies (or <strong>&#8216;High Yield&#8217;<\/strong>) with higher levels of <strong>Debt<\/strong>.<\/li>\n\n\n\n<li><strong>Financial Sponsors<\/strong> \u2013 serves <strong>Private Equity Funds<\/strong> as they raise <strong>Debt Capital<\/strong> to fund acquisitions.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"kt-adv-heading38275_26b3be-bc wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading38275_26b3be-bc\"><strong>How Debt Investment Bankers Raise Money for Clients<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">Very briefly, there are many large (or &#8216;<strong>Institutional<\/strong>&#8216;) lenders whose sole job is to lend money to companies. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, it doesn\u2019t typically make sense for a company to maintain relationships with thousands of lenders who <strong><em>might<\/em><\/strong> lend them money down the road. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Instead, companies go to <strong>Debt Bankers<\/strong> who act as an intermediary between their company and the lenders.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Debt Bankers<\/strong> maintain relationships with these lenders and help companies market themselves to the lenders to attract interest. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">The bankers will then manage the process of \u2018building a book\u2019 of interested lenders who then lend money to the client company. The <strong>Investment Bank<\/strong> manages this process from start to finish and collects a fee in return.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" style=\"font-size:25px\"><strong>Product Group #4: Equity Bankers<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">When a company wants to raise investor money, they come to our final group of <strong>Product Bankers<\/strong> which are the <strong>Equity Bankers<\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity.png\" alt=\"A Equity Banker offering to raise different types of Equity for clients\" class=\"wp-image-38221\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/10-Equity-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">Similar to the <strong>Debt Bankers<\/strong> in the previous section, individuals in these groups maintain relationships with investors of all sizes and help clients manage the process of raising capital from those <strong>Investors<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Equity Groups <\/strong>within an <strong>Investment Bank<\/strong> typically break down in terms of the type of Investor capital that they raise.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h5 class=\"kt-adv-heading38275_514193-0d wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading38275_514193-0d\"><strong>Equity Group #1: Equity Capital Markets<\/strong><\/h5>\n\n\n\n<p style=\"font-size:18.5px\">If a company is raising common equity (or <strong>&#8216;Stock&#8217;<\/strong>) from the <strong>Public Markets<\/strong>, they will typically work with the <strong>Equity Capital Markets<\/strong> (<strong>&#8216;ECM&#8217;<\/strong>) <strong>Group<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">This group specializes in helping companies list their shares for the first time through what is called an <strong><a href=\"https:\/\/www.forbes.com\/advisor\/investing\/initial-public-offering-what-is-an-ipo\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Initial Public Offering<\/span><\/a><\/strong> (or <strong>\u2018IPO\u2019<\/strong>). <\/p>\n\n\n\n<p style=\"font-size:18.5px\">They can also help companies navigate the tricky process of additional equity (a <strong>\u2018Secondary Offering\u2019<\/strong>) after their <strong>IPO<\/strong> is complete.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h5 class=\"kt-adv-heading38275_98b302-76 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading38275_98b302-76\"><strong>Equity Group #2: Private Equity Placements<\/strong><\/h5>\n\n\n\n<p style=\"font-size:18.5px\">On the other hand, if a company is looking to raise capital from <strong>Private<\/strong> investors, they will then turn to the <strong>Private Equity Placements<\/strong> group. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Bankers in this group cultivate relationships with large investors around the world with significant amounts of money in reserve. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Private Equity Placement Bankers<\/strong> work to connect their clients with these investors and help them to tell their story so they can raise investor funding.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>What is an Investment Bank? &#8211; Blurry Lines Between Groups<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Now we get to the frustrating part of this explanation for newbies. <\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">All of the above is a <strong>solid framework<\/strong> for understanding the <strong>inner workings of an Investment Bank<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, there are <strong>quite a lot of variations across different banks <\/strong>in the distinctions between the groups laid out above and, as a result, the lines between the groups are often a bit blurry.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" style=\"font-size:26px\"><strong>Blurry Line #1: Product Groups vs Industry Groups<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">The first blurry line is between <strong>Product Groups<\/strong> and <strong>Industry Groups<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Some <strong>Investment Banks<\/strong> maintain full separation between <strong>Product Groups <\/strong>and<strong> Industry Groups<\/strong> as illustrated below.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate.png\" alt=\"An image showing that some banks separate Product Group and Industry Group functions within an Investment Bank\" class=\"wp-image-38225\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/13-IB-Groups-Separate-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">However, <strong>many other Investment Banks<\/strong> <strong>combine Product Groups and Industry Groups<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined.png\" alt=\"An image showing that some Investment Banks combined Industry and Product Group functions\" class=\"wp-image-38226\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/14-IB-Groups-Combined-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">For example, <a href=\"https:\/\/www.goldmansachs.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Goldman Sachs<\/span><\/strong><\/a>\u2019s <strong>Industry Groups<\/strong> often do quite a bit of their own execution, in particular for <strong>M&amp;A<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">As an example, if you work in Goldman\u2019s highly sought-after <strong>Technology, Media and Telecom<\/strong> <strong>(\u2018TMT\u2019<\/strong>) <strong>Group<\/strong>, you\u2019ll both cover industries and execute M&amp;A deals, even though TMT isn\u2019t a <strong>Product Group<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">By contrast, at <a href=\"https:\/\/www.morganstanley.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Morgan Stanley<\/strong><\/span><\/a>, <strong>Product Groups<\/strong> are largely separate from <strong>Industry Groups<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">For example, <strong>Morgan Stanley\u2019s M&amp;A group leads M&amp;A execution<\/strong> even though Morgan Stanley has many <strong>Industry Groups<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">In short, we <strong>can use our original explanation as a starting point for understanding what each group does within a bank<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, many banks combine <strong>Product Group<\/strong> and <strong>Industry Coverage Group<\/strong> functions and there\u2019s little rhyme or reason as to why.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" style=\"font-size:25px\"><strong>Bulge Bracket Banks vs Middle-Market Banks Group Structure<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">Despite having just muddied the waters, there are a few things that remain relatively constant across firms. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Most <strong>Bulge Bracket<\/strong> and <strong>Middle-Market Banks<\/strong> keep a few of their groups completely separated. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">The groups that typically remain standalone include: <strong>Debt Capital Markets, Leveraged Finance, Financial Sponsors, Equity Capital Markets<\/strong>, and <strong>Private Equity Placements<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Beyond these groups, there\u2019s quite a bit of variation of how much deal execution is done within <strong>Industry Groups<\/strong> do within each bank.<\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups.png\" alt=\"An image Highlighting the typical Debt and Equity Product groups within an Investment Bank\" class=\"wp-image-38223\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/11-Standalone-Groups-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" style=\"font-size:25px\"><strong>Elite Boutiques: Industry Groups vs Generalists<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">Because <strong>Elite Boutique Banks<\/strong> tend to focus on advisory, their breakdowns are typically around the two core Advisory offerings: <strong>M&amp;A<\/strong> and <strong>Restructuring<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Several <strong>Elite Boutique Banks<\/strong> break <strong>M&amp;A<\/strong> down by Industry, similar to the <strong>Industry Coverage Groups<\/strong> we saw above. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">In firms with this structure, the bankers within an <strong>Industry Group<\/strong> typically focus on <strong>M&amp;A<\/strong> solely within that particular industry. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">In firms with this structure, <strong>Restructuring is typically a standalone group<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized.png\" alt=\"An image showing that some Elite Boutique Investment Banks specialize based on industry verticals\" class=\"wp-image-38227\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/15-Elite-Boutiques-Verticalized-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">Conversely, some <strong>Elite Boutique<\/strong> banks offer their <strong>Junior Bankers<\/strong> a more <strong>Generalist<\/strong> role. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">In firms with this approach, <strong>Junior Bankers<\/strong> work on <strong>M&amp;A<\/strong> and <strong>Restructuring<\/strong> transactions across industries. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">Despite this approach, <strong>as bankers move up<\/strong> in the ranks, they <strong>tend to specialize in a particular Industry<\/strong>.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1255\" height=\"493\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/16-Elite-Boutiques-Generalist-e1621591245678.png\" alt=\"An image showing that some Elite Boutique investment banks take a generalist approach\" class=\"wp-image-38228\"\/><\/figure>\n<\/div>\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" style=\"font-size:26px\"><br><strong>Blurry Line #2: Capital Markets vs Investment Banking<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">Another point of confusion is the distinction between <strong>Capital Markets <\/strong>and<strong> Investment Banking<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">You will <strong>often hear both mentioned in discussions<\/strong> around <strong>Investment Banking<\/strong>, but it\u2019s not clear how their role is different\u2026if at all.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets.png\" alt=\"An image highlighting the groups that are typically included in Capital Markets within an Investment Bank\" class=\"wp-image-38224\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets.png 1920w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-1536x864.png 1536w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/05\/12-Capital-Markets-100x56.png 100w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">First, <strong><a href=\"https:\/\/www.investopedia.com\/terms\/c\/capitalmarkets.asp\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Capital Markets<\/span><\/a><\/strong> is typically under the <strong>Investment Banking<\/strong> umbrella. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, the bankers in these groups are solely focused on raising capital from external <strong>Investors<\/strong> and <strong>Lenders<\/strong>. <strong>Capital Markets<\/strong> bankers act as the direct interface between the bank\u2019s clients and the <strong>Debt <\/strong>and<strong> Equity<\/strong> markets.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Because of their market-facing role, <strong>Capital Markets Groups<\/strong> are often described as a separate entity, but they are <strong>just another part of Investment Banking<\/strong>.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Wrap-Up<\/strong>: <strong>What is an Investment Bank?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands-1024x576.png\" alt=\"a stick figure understanding the question, 'What is an Investment Bank?'\" class=\"wp-image-51209\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/11\/what-is-an-investment-bank-understands.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">Given the blurry lines mentioned above, the inner workings of <strong>Investment Banks<\/strong> can be very confusing to outsiders.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, just remember that <strong>Investment Banks<\/strong> primarily offer both <strong>Advisory <\/strong>and<strong> Capital Raising <\/strong>services for businesses.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">And <strong>Investment Banks<\/strong> are categorized into three buckets: <strong>Bulge-Bracket Banks, <\/strong> <strong>Elite Boutiques<\/strong>, and<strong> Middle-Market Banks<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Bulge-Bracket<\/strong> and <strong>Middle-Market Banks<\/strong> offer the full spectrum of <strong>Advisory <\/strong>and <strong>Capital Raising<\/strong> services. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Bulge-Bracket Banks<\/strong> focus on Medium\/Large-Sized clients whereas <strong>Middle-Market Banks<\/strong> serve Small\/Medium-sized clients. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">In contrast, <strong>Elite Boutiques <\/strong>typically focus on <strong>Advisory<\/strong> services for Medium\/Large-sized clients.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Finally, while the functions of <strong>Industry \u2018Coverage\u2019 Groups<\/strong> and &#8216;<strong>Product&#8217; Execution Groups<\/strong> may overlap depending on the bank, in the end, each bank is typically offering some combination of <strong>Advisory<\/strong> and <strong>Capital Raising<\/strong> services.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><\/p>\n\n\n\n<p style=\"font-size:18.5px\">We hope that by <strong>breaking down the basic groups within Investment Banks<\/strong>, their core services, and the types of firms, we have <strong>given you a better understanding of how these firms operate<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Let us know in the comments below if you have any questions!<\/strong><\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-an-investment-bank-animated-explainer-video\" style=\"font-size:37px\"><strong>What Is An Investment Bank &#8211; Animated Explainer Video<\/strong> <\/h2>\n\n\n\n<p style=\"font-size:18.5px\"> <strong>If you enjoyed this article<\/strong>, check out our <span style=\"text-decoration: underline;\"><a href=\"https:\/\/youtu.be\/JjjAizGCEFQ\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Animated Explainer Video<\/strong><\/span><\/a><\/span> on <strong>What Is An Investment Bank?<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\"> You can find more videos just like this on our <a href=\"https:\/\/www.youtube.com\/c\/FinanceableTraining\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">YouTube Channel<\/span><\/strong><\/a>. <\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-related-links\" style=\"font-size:37px\"> <strong>Related Links<\/strong> <\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide (2021)<\/span><\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Hedge Funds vs Mutual Funds Made Easy \u2013 Definitive Guide (2021)<\/span><\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Walk Me Through an LBO in 6 Steps \u2013 The Ultimate Guide (2021)<\/strong><\/span><\/a> <\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-about-the-author\" style=\"font-size:37px\"><strong>About the Author<\/strong><\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg\" alt=\"Picture of Mike Kimpel, Founder of Finance|able\" class=\"wp-image-26350\" style=\"width:248px;height:248px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg 500w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-300x300.jpg 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-100x100.jpg 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-150x150.jpg 150w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-50x50.jpg 50w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p class=\"has-normal-font-size\"><a href=\"https:\/\/finance-able.com\/about\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Mike Kimpel<\/strong><\/span><\/a> is the <strong>Founder and CEO<\/strong> of <strong>Finance|able<\/strong>, a next-generation Finance Career Training platform. Mike has worked in Investment Banking, Private Equity, Hedge Fund, and Mutual Fund roles during his career.<\/p>\n\n\n\n<p class=\"has-normal-font-size\">He is an <strong>Adjunct Professor<\/strong> in <strong>Columbia Business School&#8217;s <\/strong><a href=\"https:\/\/www8.gsb.columbia.edu\/valueinvesting\/coursesfaculty\/valueinvestingprogram\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Value Investing Program<\/span><\/strong><\/a> and leads the Finance track at <a href=\"https:\/\/www.accessdistributed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Access Distributed<\/span><\/strong><\/a>, a non-profit that creates access to top-tier Finance jobs for students at non-target schools from underrepresented backgrounds.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"kt-adv-heading38275_d15227-17 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading38275_d15227-17\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1625144510779\"><strong class=\"schema-faq-question\"><strong><em>What does an Investment Banker Do?<\/em><\/strong><br\/><\/strong> <p class=\"schema-faq-answer\"><strong>Investment Bankers operate in two major areas: Advisory and Capital Raising for Corporate Clients.<\/strong><br\/><br\/>In many ways, they are <strong>very similar to a Real Estate agent<\/strong>. However, Investment Bankers advise on transactions with Businesses (as opposed to Houses).<br\/><br\/>Investment Bankers advise their clients on the <strong>purchase and sale of companies<\/strong> (&#8216;Mergers and Acquisitions&#8217; or &#8216;M&amp;A&#8217;)and <strong>help clients if they run into Financial Distress<\/strong>.<br\/><br\/>Bankers also help clients <strong>raise Investor (&#8216;Equity&#8217;) and Lender (&#8216;Debt&#8217;) capital<\/strong>.<br\/><br\/><strong>Investment Bankers<\/strong> are typically <strong>paid a small percentage<\/strong> of the <strong>purchase\/sale value<\/strong> in an M&amp;A transaction or a percentage of the money raised in an <strong>Equity or Debt deal<\/strong>.<br\/><br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1625144544109\"><strong class=\"schema-faq-question\"><em>What is Investment Banking in simple terms?<\/em><\/strong> <p class=\"schema-faq-answer\"><br\/>Investment Bankers are <strong>very similar to Real Estate agents<\/strong>. <br\/><br\/>Real Estate agents <strong>advise their clients on the purchase and sale of a house<\/strong>. <br\/><br\/>They often also <strong>help their clients to secure funding from lenders<\/strong> (the &#8216;Mortgage&#8217;) to fund the purchase of their house.<br\/><br\/><strong>Investment Bankers do all of the above but with the purchases and sales of entire Businesses (instead of houses).  <\/strong><br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1625144588421\"><strong class=\"schema-faq-question\"><em>Who are the clients of Investment Banks?<\/em><\/strong> <p class=\"schema-faq-answer\"><br\/>Businesses of all sizes from <strong>start-ups to large corporations <\/strong>are the primary clients of Investment Banks. <br\/><br\/>Investment Banks also offer services for large investment firms like <a href=\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Private Equity Funds<\/strong><\/span><\/a>, <a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Hedge Funds and Mutual Funds<\/strong><\/span><\/a>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1625154887755\"><strong class=\"schema-faq-question\"><em>How to be an Investment Banker?<\/em><\/strong> <p class=\"schema-faq-answer\"><br\/>The <strong>admissions process<\/strong> for a job in Investment Banking is <strong>incredibly competitive with acceptance rates below 5% for most top-tier firms. <\/strong><br\/><br\/>The <strong>two primary entry points<\/strong> into the <a href=\"https:\/\/finance-able.com\/investment-banking-career-path\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Investment Banking Career Path<\/span><\/strong><\/a> are at <strong>post-undergraduate (&#8216;Analyst&#8217;) level<\/strong> and at the <strong>post-MBA (&#8216;Associate&#8217;) level<\/strong>. <br\/><br\/>To break in you&#8217;ll typically <strong>need to attend a top-tier school targeted by Investment Banks<\/strong> or do <strong>extensive networking from a  &#8216;Non-Target School.<\/strong>&#8216;<br\/><br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1637684672948\"><strong class=\"schema-faq-question\">What role do investment banks play in the economy?<\/strong> <p class=\"schema-faq-answer\"><br\/>Investment Banks <strong>enable purchase and sale transactions<\/strong> of Businesses of all sizes that can re-shape entire industries. <br\/><br\/>They also help <strong>ensure a smoothly functioning Capital Market<\/strong> with their Capital Markets and Sales and Trading divisions. <br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1637684679026\"><strong class=\"schema-faq-question\">How much do investment bankers make?<\/strong> <p class=\"schema-faq-answer\"><br\/>The <a href=\"https:\/\/finance-able.com\/investment-banking-career-path\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Investment Banking Career Path<\/strong><\/span><\/a><strong> <\/strong>can be <strong>highly lucrative<\/strong> with <strong>Junior Investment Bankers<\/strong> at top-tier firms often <strong>making $150-200K (USD) per year<\/strong> right out of undergrad. <br\/><br\/><strong>Senior Bankers<\/strong> can make <strong>over $1 million<\/strong> with <strong>top-performing bankers<\/strong> clearing <strong>$5-10 million or more per year<\/strong>.<br\/><\/p> <\/div> <\/div>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/finance-able.com\/\">Home<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">What Is An Investment Bank? &#8211; Ultimate Guide<\/span><\/span><\/div><style 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            "text": "<strong>Investment Bankers operate in two major areas: Advisory and Capital Raising for Corporate Clients.<\/strong><br\/><br\/>In many ways, they are <strong>very similar to a Real Estate agent<\/strong>. However, Investment Bankers advise on transactions with Businesses (as opposed to Houses).<br\/><br\/>Investment Bankers advise their clients on the <strong>purchase and sale of companies<\/strong> ('Mergers and Acquisitions' or 'M&amp;A')and <strong>help clients if they run into Financial Distress<\/strong>.<br\/><br\/>Bankers also help clients <strong>raise Investor ('Equity') and Lender ('Debt') capital<\/strong>.<br\/><br\/><strong>Investment Bankers<\/strong> are typically <strong>paid a small percentage<\/strong> of the <strong>purchase\/sale value<\/strong> in an M&amp;A transaction or a percentage of the money raised in an <strong>Equity or Debt deal<\/strong>.<br\/><br\/>",
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            "text": "<br\/>Businesses of all sizes from <strong>start-ups to large corporations <\/strong>are the primary clients of Investment Banks. <br\/><br\/>Investment Banks also offer services for large investment firms like <a href=\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"><strong>Private Equity Funds<\/strong><\/a>, <a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\"><strong>Hedge Funds and Mutual Funds<\/strong><\/a>.<br\/>",
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