Profitability: Sell-side vs. buy-side

ecobiz's picture
Rank: Senior Chimp | 28

Hey monkeys,

This questions should not delve into PE vs IBD discussions but rather on the profitability of either side for an investment bank. I came across this question at an interview with an MM.

Interviewer: What is more profitable to an investment bank? Sell-side or buy-side engagements?

I don't remember the exact answer to the question but I think it had something to do with fees being collected upon successful transaction...

Could somebody enlighten me please?

ecobiz