What is the Investment Banking Division? (IBD)

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.

IB Division Explanation

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 firms are known for being particularly good at certain sectors, for example Goldman Sachs TMT (Technology, Media & Telecoms), Morgan Stanley M&A, and Bank of America LevFin.

Related Terms

Return to the Finance Dictionary

Read Investment Banking Division Forum Topics

Preparing for Investment Banking Interviews?

The WSO investment banking interview course is designed by countless professionals with real world experience, tailored to people aspiring to break into the industry. This guide will help you learn how to answer these questions and many, many more.

Investment Banking Interview Course Here

Start Discussion

Popular Content See all

The lighter side of IB! (Hopefully)
+55IBby 1st Year Analyst in Investment Banking - Mergers and Acquisitions">Analyst 1 in IB-M&A
Why aren't Asians/Indians/Middle Eastern considered diversity
+29IBby Intern in Investment Banking - Industry/Coverage">Intern in IB - Ind
The "right" blue in excel
+18REby Portfolio Manager in Real Estate - Commercial">PM in RE - Comm
Leaving New York
+14IBby Intern in Investment Banking - Industry/Coverage">Intern in IB - Ind
Is Finance the back office of society?
+13OFFby 1st Year Analyst in Investment Banking - Industry/Coverage">Analyst 1 in IB - Ind
Do I Count as Diversity?
+12IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A

Total Avg Compensation

October 2020 Investment Banking

  • Director/MD (17) $704
  • Vice President (49) $326
  • Associates (265) $228
  • 3rd+ Year Analyst (36) $168
  • 2nd Year Analyst (147) $159
  • Intern/Summer Associate (137) $141
  • 1st Year Analyst (584) $130
  • Intern/Summer Analyst (559) $82

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.4
2
Jamoldo's picture
Jamoldo
98.3
3
Secyh62's picture
Secyh62
98.2
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
Addinator's picture
Addinator
97.6
7
bolo up's picture
bolo up
97.5
8
NuckFuts's picture
NuckFuts
97.5
9
frgna's picture
frgna
97.5
10
Edifice's picture
Edifice
97.3