A Quick Guide to the Different Types of Investment Banking

Pevita Lena

When you think about successful businesses today, which are the first ones that come to mind? We’re going to assume corporations like Apple, Amazon, and Samsung.

Each started as a small company and grew over time. But to get to that next level, besides popularity, they also needed capital.

Growing your company can be a tedious process because you’re trying to secure investors to help fund your venture. However, with investment banking, you can get the help you need to increase the size of your company.

Today, we’ll discuss the different types of investment banking and other investing tips. Continue reading to learn more.

What Is Investment Banking?

Investment banking is a bank branch that assists corporations, institutions, or wealthy individuals with acquiring capital to grow their companies. The most notable investment banks include:

  • JP Morgan Chase
  • Goldman Sachs
  • Morgan Stanley
  • Bank of America Merrill Lynch

They are not to be confused with investment banking divisions in smaller banks. Investment banks offer a full range of services such as:

  • Underwriting
  • Merger & Acquisition (M&A)
  • Equity research
  • Asset management

The only services offered by investment banking divisions are underwriting and M&A. 

Different Types of Investment Banking

Depending on the nature of your business or investing strategies you want to exercise, there are different types of investment banking that you can use. Each comes with different services and covers various regions.

Bulge Bracket Banks

Bulge bracket investment banks are full-service banks like we mentioned above. So JP Morgan Chase and Goldman Sachs would be considered bulge bracket banks.

Most clients of these banks are Fortune 500 companies that are frequently involved in billion-dollar deals. These banks are also not limited to a specific geographical location and provide their services worldwide.

Regional Boutique Banks

Unlike bulge bracket banks, regional boutique banks are the smallest types of investment banks. As the name suggests, these banks only operate in specific regions.

Also, regional boutique investment banks don’t offer the same services as full-service banks. So if you want to use this type of bank for your business transaction, ensure that they provide the services you require.

Middle Market Banks

Middle market banks offer a good balance between bulge bracket and regional boutique investment banks. Some may provide complete services like bigger investment banks, while others may specialize in a few particular services.

Middle market banks will also operate in multiple regions across states. However, they provide no services internationally.

Elite Boutique

Elite boutique banks are a little different from the others. While they operate and close deals that equate to bulge bracket banks, they are often smaller in size and have fewer employees.

Elite boutique banks mainly focus on M&A or restructuring services in multiple regions. However, some areas may be stronger than others.

Investing Can Help Your Business Grow

With the various investment banking opportunities, it’s easier to get the help you need to grow your business. Think about what your company needs and start building your pathway to success today.

If you want to learn more about investing or other business concepts, feel free to read our other blogs.







June Potter wrote this article on behalf of FreeUp. FreeUp is the fastest-growing freelance marketplace in the US. FreeUp only accepts the top 1% of freelance applicants. Click here to get access to the top freelancers in the world.   






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