Investment Banking Division is a sector of an investment bank that is responsible for corporate finance and advisory. It is broadly split into two sectors, products and industries. The purpose of both Investment Banking Division sectors is to provide advisory on transactions, mergers and acquisitions and to arrange (and sometimes even provide) financing for these transactions. The Investment Banking Division area of banking is the subject of the popular book Monkey Business: Swinging Through the Wall Street Jungle.

Investment Banking Division products comprise the following types of deals:

  • Mergers and Acquisitions (M&A) - advisory on sale, merger and purchase of companies
  • Leveraged Finance (LevFin) - lending money to firms to finance acquisitions
  • Equity Capital Markets (ECM) - advice on equity and equity-derived products (shares, options, futures etc)
  • Debt Capital Markets (DCM) - advice on raising and structuring of debt to finance acquisitions
  • Restructuring – improving the structures of a company to make it more profitable or efficient

Investment Banking Division industry groups focus on one specific industry (Technology & Media & Telecoms, Financial Institutions, Energy etc) but carry out all the different kinds of deals for firms within that sector. For example, the Financial Institutions (FIG) team will work with clients on raising debt, IPOs, acquisitions etc, but will only work with clients within that sector.

Some investment banking division firms are known for being particularly good at certain sectors, for example Goldman Sachs TMT (Technology, Media & Telecoms), Morgan Stanley M&A, and JPMorgan LevFin.

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