David Horowitz’s Post

Do you know what activities an Investment Bank does? 1. Investment Banking Division/Corporate Finance: The investment banking division (IBD) is generally divided into industry coverage and product groups. Industry coverage groups focus on a specific industry and maintain relationships with corporations within the industry to bring in business for a bank in the form of M&A, debt, and equity raises (IPOs). Product coverage groups focus on financial products, such as mergers and acquisitions, leveraged finance, etc, and generally work and collaborate with industry groups on the more intricate and specialized needs of a client towards the end of a deal process. Product coverage groups include M&A, Leveraged Finance, Equity Capital Markets, and Debt Capital Markets. 2. Mergers & Acquisitions (M&A): Full-service investment banks are large international financial players that offer a wide range of services to their clients. These banks offer merger & acquisition expertise in both domestic and sophisticated international transactions. M&A groups manage transactions including leveraged buyouts, divestitures, corporate restructurings, acquisitions, joint ventures, and mergers, to name a few. 3. Sales & Trading: In simple terms, they buy and sell products. These might be financial products such as shares in companies, foreign exchange, or commodities such as gold, beef, oil, or natural gas. The salespeople are generally known as brokers or dealers. A big part of their job is contacting existing or potential clients to try to sell them financial products (for example stocks and bonds). Traders are the people who do the buying and selling on the financial markets. 4. Asset Management: Asset management is the management of securities and other assets for an investor. In the case of wealth management, this is sometimes referred to as the private bank, referring to customer service rendered on a more personal basis than in mass-market retail banking. 5. Equity Research: The research division reviews companies and writes reports about their prospects, often with “buy” “sell” or “hold” ratings. While the research division may or may not generate revenue, its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients. There is a potential conflict of interest between the investment bank and its analysis, in that published analysis can affect the bank’s profits. Hence in recent years, the relationship between investment banking and research has become highly regulated, requiring a Chinese wall between public and private functions. Source: Vanderbilt University Follow Bharat Ramrakhiani for more such content. #morganstanley #investmentbanking #jpmorganchase #goldmansachs #deutschebank #bnpparibas #corporatefinance #equityresearch #lazard #citibank

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Investment Banking Divisions Explained Here are main divisions according to Alastair Matchett Capital Markets For clients looking to raise new debt or equity in the primary markets, Capital Markets will be the IB team advising and executing. This division includes the groups such as Equity, IG Fixed Income, and Credit, as well as Associated Derivatives, and all tend to sit on the markets’ floors of the building. They interact with investment bankers in Advisory, Research, and S&T. All of these groups sit on the other side of the ‘wall’ which separates private activities from public-facing groups. There are other groups that are hybrids of the Capital Markets teams but share enough in common to often sit nearby on the markets’ floors. Leveraged Finance, which includes both Credit and Fixed Income is considered part of Capital Markets, as is Syndication, which deals primarily with high yield bank loans. Real Estate may have a financing group that sits on the capital markets floors as well since financing is incredibly capital intensive. Advisory Groups Investment bankers who manage client relationships are the classic advisors. They must be capable of speaking intelligently about all areas of the investment bank to clients. It is also important to have the ability to pull in members from the other product groups (M&A, Capital Markets, etc.) to meet with clients to discuss specialist areas. These advisory groups can be broken down by industry but are typically broken down by geography. M&A The M&A focus is typically broken into subgroups by industry in banks. Having a very strong in-depth industry knowledge and a solid familiarity with the (geographic) market in question will give an M&A team a winning edge over competitors. Having a good track record will also speak volumes about the strength of any IB team. Other Areas Financial Sponsors is an Advisory group focused on transactions involving private equity funds, hedge funds, and sovereign wealth groups. These can be traditional LBOs but also recaps, divestitures, and smaller equity investments for both short and long-term gain. Financial Sponsors often work closely with the LevFin team. Private Placements handle very specific transactions that do not have to be registered with the SEC. As a result, they are a quasi-capital markets group, while also handling transactions that are quite different in many ways from a public offering. FIG or Financial Institutions Group is an Advisory group that handles all transactions within the financial institution space. This will mainly be M&A-related but can cover other areas. There is often a separate group of FIG professionals who are solely responsible for examining M&A opportunities for the bank itself (as opposed to client-based work). #banking #bank #trading #careers #business #finance #tech #money

The four main areas of Investment Banking: 1) Capital markets 2) M&A Advisory 3) Trading and Brokerage 4) Asset management Let’s understand each in detail: •Capital Markets Capital markets are where investments are channeled between suppliers and those in need of Capital. Role of Investment Bankers in Capital Markets: They are financial advisors to Corporations. They help clients to raise money. That may mean issuing stocks, floating a bond issue, negotiating the acquisition of a rival company or arranging the sale of the company itself. Eg: Gillette wants to raise some money for a new project. One option is to issue more stock (through what’s called a secondary stock offering). They’ll go to an investment bank like JPMorgan, which will price the new shares (remember, investment banks are experts at calculating what a business is worth). JPMorgan will then underwrite the offering, meaning it guarantees that Gillette receives proceeds at ($share price * newly issued shares) less JPMorgan’s fees. Then, JPMorgan will use its institutional salesforce to go out and get Fidelity and many other institutional investors to buy chunks of shares from the offering. JPMorgan’s traders will facilitate the buying and selling of these new shares by buying and selling Gillette shares out of their own account, thereby making a market for the Gillette offering. • M&A Advisory Investment banks act as a merchant and a broker in conducting IPO transactions and M and A transactions. M&A bankers are some of the highest paid and highest profile bankers in the industry. Some of the advisory services include: - Due diligence services - Corporate Advisory - Pre Deal and Post Deal Advisory - Buyer Side advisory - Seller Side advisory •Trading and Brokerage Services Brokerage Services generate income for securities firms through management fees, trading commissions, and margin interest. • Asset management It refers to the strategic management of investments, involving the monitoring, maintenance and growth of financial assets. Asset managers oversee a diverse range of assets including stocks, bonds, real estate, commodities and more. They analyze market trends, evaluate investment opportunities, and device strategies to optimize portfolio performance.

🚀 Cross River Bank and CRB Securities Expand into Investment Banking 🚀 Exciting news in the fintech world as Cross River Bank and CRB Securities announce their move into the investment banking space. Led by industry veterans Benjamin Samuels and Henry Pinnell, the investment banking team will assist fintechs with mergers and acquisitions, capital markets transactions, and other corporate finance matters. Gilles Gade, founder and CEO of Cross River, expressed pride in the launch, stating that the new division will enhance the company's product offering and cater to the distinct needs of each client. This expansion comes at a time of increasing demand for creative solutions in fintech and reflects the company's commitment to serving its clients' strategic needs. Benjamin Samuels, formerly of Morgan Stanley, and Henry Pinnell, previously with SVB Securities, will serve as co-heads of investment banking. This move marks a significant step for CRB Securities, which has primarily focused on privately placed credit transactions like asset-backed securities. #Fintech #InvestmentBanking #CrossRiverBank #CRBSecurities #FinanceIndustry #FintechNews

Investment Banking Divisions Explained 🏆 Capital Markets For clients looking to raise new debt or equity in the primary markets, Capital Markets will be the IB team advising and executing. This division includes the groups such as Equity, IG Fixed Income, and Credit, as well as Associated Derivatives, and all tend to sit on the markets’ floors of the building. They interact with investment bankers in Advisory, Research, and S&T. All of these groups sit on the other side of the ‘wall’ which separates private activities from public-facing groups. There are other groups that are hybrids of the Capital Markets teams but share enough in common to often sit nearby on the markets’ floors. Leveraged Finance, which includes both Credit and Fixed Income is considered part of Capital Markets, as is Syndication, which deals primarily with high yield bank loans. Real Estate may have a financing group that sits on the capital markets floors as well since financing is incredibly capital intensive. Advisory Groups Investment bankers who manage client relationships are the classic advisors. They must be capable of speaking intelligently about all areas of the investment bank to clients. It is also important to have the ability to pull in members from the other product groups (M&A, Capital Markets, etc.) to meet with clients to discuss specialist areas. These advisory groups can be broken down by industry but are typically broken down by geography. M&A The M&A focus is typically broken into subgroups by industry in banks. Having a very strong in-depth industry knowledge and a solid familiarity with the (geographic) market in question will give an M&A team a winning edge over competitors. Having a good track record will also speak volumes about the strength of any IB team. Other Areas Financial Sponsors is an Advisory group focused on transactions involving private equity funds, hedge funds, and sovereign wealth groups. These can be traditional LBOs but also recaps, divestitures, and smaller equity investments for both short and long-term gain. Financial Sponsors often work closely with the LevFin team. Private Placements handle very specific transactions that do not have to be registered with the SEC. As a result, they are a quasi-capital markets group, while also handling transactions that are quite different in many ways from a public offering. FIG or Financial Institutions Group is an Advisory group that handles all transactions within the financial institution space. This will mainly be M&A-related but can cover other areas. There is often a separate group of FIG professionals who are solely responsible for examining M&A opportunities for the bank itself (as opposed to client-based work). Lastly, Public Finance and Infrastructure is a group that handles Advisory and Capital Markets activities for municipalities and other governmental entities. #banking #bank #trading #careers #business #finance #tech #money

Don't miss out on this insightful video to see how Alexander Aerts and Laurent Clerbois are driving efficiency and excellence in investment banking at Degroof Petercam. ⭐ Key Achievements: 1️⃣ Set a new record for Ansarada by redacting 700 documents in minutes—what used to take hours or days. 2️⃣ Leveraged Ansarada's innovative bulk redaction pattern recognition technology. 3️⃣ Record deal volume in Belgium using Ansarada Deals Platform 4️⃣ Utilised Workflow tool to optimise their M&A deal preparations. 🇧🇪 About Degroof Petercam: An investment house deeply rooted in Belgian heritage, Degroof Petercam has been a trusted name for over 150 years. With a focus on unbiased, client-focused decisions, the firm is a preferred choice for corporates, investors, and institutions. #InvestmentBanking #Finance #Innovation #MergersAndAcquisitions #Ansarada #Efficiency #SuccessStory

How to break into investment banking: Tips and strategies

🌟 PeerBerry: A Leader in European P2P Lending 🌟 We are excited to share our analysis of PeerBerry, a prominent player in the peer-to-peer lending space. Since 2017, PeerBerry has demonstrated exceptional growth, attracting over 75,000 investors and facilitating investments exceeding €2 billion. 📊 Key Insights: - Renowned for its solid buyback guarantee and remarkable record of no defaults. - Offers a wide range of secure investment opportunities across Europe, emphasizing transparency and risk management. - Dive into our comprehensive review to uncover PeerBerry's strategies for ensuring investor security and its pivotal role in the P2P lending ecosystem. 🔗 https://lnkd.in/e9d5ZBHN 💼 Join the discussion on PeerBerry's impact on investment diversification and its future in the P2P lending market. #PeerBerry #P2PLending