What criteria makes an Investment bank an investment bank?
Hello everyone,
I have a question about Investment banks. What criteria must a bank or boutique fulfill to be named and investment bank/ boutique. What if the company does not fit the criteria, but the activities are very similar, M&A Advisory, private capital raising etc, Would the employee's still be named investment bankers?
Thank you in advance.
Bump
My definition of investment banking is the act of helping a company transact in its own securities
Equity / IPO: Selling primary or secondary shares HY / DCM: Selling primary debt M&A: Transacting one parties' securities to another
(Buyside M&A counts in this definition if you consider the seller as part of the pro forma buyer).
This basically covers it. Also..... why does this matter?
Why wouldn't those activities be consider those of an investment bank?
I'm not sure if I've heard of a non-investment bank that does M&A and capital markets.
Thank you for the replies so far, but how is it regarded if a boutique does Not do Ipo's or bond issuance, It primarily advises small to medium size business on receiving funding. This is done by finding the correct investment organization or Angel etc. Furthermore, advises in buy-side M&A.
Would this business still be considered an Investment boutique or a corporate finance boutique? Could I place my experience in this firm as an investment banking analyst or a corporate finance analyst on my CV?
Thank you for your time.
That depends, what was your title and what desk were you on? Some small shops do buy-side only advisory and are still considered investment banks.
Investment Banking:
It doesn't have to do all of these, but if you're doing one of them...you're doing "investment banking". Whoever tells you otherwise is retarded. There's always that coverage banker that shits on the ECM/DCM people and says they aren't "bankers" -- and that person more than likely needs a hobby.
I would just look at whether they got related government licenses for this. For example, in Singapore, in order to raise funds, they need "Capital Markets Services Licence" granted by Monetary Authority of Singapore (MAS).
Just see if the first years are wearing Patek Philippes and buying bottles at clubs. That's a good way to check
Do business brokers qualify as investment bankers?
Yeah that's the only distinction I can really think of.
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