Hey I’m just looking to get insight into FIG. Also which Financial Institution Groups across the street get the most deal flow? Do junior bankers still get the typical exit opportunities into PE and such? Thanks in advance for any insight
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The Financials (FIG) industry is a good area for investment banking because it encompasses a wide range of companies and services that are essential to the global economy. This includes banks, insurance companies, and other financial institutions. These companies are typically large, well-established, and generate significant revenue, making them attractive to investors. Additionally, the FIG industry is highly regulated, which can create opportunities for investment banks to advise companies on compliance and other legal issues. Furthermore, the ongoing digitalization and innovation has added new complexities to the industry and increased the need for sophisticated financial advice and services, leading to an even more active M&A and IPOs activities.
There are several investment banks that are known for their expertise in the Financials (FIG) industry. Some of the top investment banks for FIG include:
JPMorgan Chase: The company's investment banking division is one of the largest in the world, and it has a strong presence in the FIG industry.
Goldman Sachs: Known for its expertise in the FIG industry, particularly in investment banking and M&A.
Morgan Stanley: It's known for its strength in FIG services, focusing on investment banking and institutional securities.
Citigroup: It's one of the largest global FIG banks, with a strong focus on the consumer banking sector.
Barclays: It's a leading FIG investment bank that focuses on providing services such as M&A and ECM.
These banks have strong track records and reputations within the industry, and have been involved in many of the largest and most complex FIG transactions. However, it's worth noting that the ranking and performance of the banks can change year by year as the FIG industry has a very dynamic nature.
Chatgpt type shi
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The way I think about FIG is that you have balance sheet businesses (banks, other lenders, insurance companies) and non-balance sheet businesses (services mostly -- asset management, financial advisory, fintech etc.). Deal activity among balance sheet businesses is mostly strategic and will attract mostly FIG-specific PE because the business models are so different. Non-balance sheet businesses may not be that different from other services businesses so will sometimes be a part of FIG coverage and sometimes won't be.
Can you elaborate on why those are considered balance sheet and non balance sheet businesses respectively? Sorry I am new to FIG
Pertaining to exit opps, as dude above pointed out, banks/trusts/thrifts etc. tend to undergo a massive amount of M&A but it's among strategic acquirers. So you very well could find an awesome Corp Dev role with a bank holding co., but you're not going to find many Growth Equity / LBO roles that are focused on regional banks.
Most of the big financials companies (Capital One, Paypal, Amex, etc.) also have internal venture arms that invest in up-and-coming financials/fintech/payments businesses. So that is a big exit opportunity as well.
Finally, for people that are all about the buy-side; specialty finance & fintech specifically actually have really great PE / HF / AM exits. You can find typical LBO / Growth Equity PE firms investing in these businesses or go the traditional AM route and work for a group like PIMCO / Blackrock / Dimensional Fund Advisors, etc.
One thing I always like to point out, is that Financials is the most massive sector of investment banking activity by a long shot. So just thinking about that logically, if financials is generating the most sell-side fees of any industry by nearly 3.0x, there certainly must be a buy-side investor / counterparty to all of those sell-side transactions. Whether it's a strategic acquirer, corporate investment or bonafide PE / HF / mutual fund investor, there is a massive amount of investment activity in the Financials sector, and thus a massive amount of investment jobs in the Financials sector.
Source: https://markets.ft.com/data/league-tables/tables-and-trends
Doesn't Financials include all PE deals?
Ie. if a sponsor buys an industrials company, isn't it recorded under financials in the league table because all PE firms are financial services companies?
Not really sure how credit for fees is allocated so would love to here insights about whether this is true
I believe it is filtered by Target Company industry, ie it does not include all transactions with a Private Equity investor.
This is skewed by IG debt issuances, which comprise majority of FIG-related transaction volume.
You can filter by product type if you use the link. General point still stands that FIG is a pretty massive industry with pretty massive volume of investment.
The following is sorted by purely M&A deals:
Among ECM deals, FIG is still the largest sector, but by a less eye-popping margin. See below.
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