Roles in the Investment Banking Division

The Investment Banking Division (IBD) is a separate division within the investment bank that provides corporate finance and advisory services.

IBD Services

Within the IBD, there are many different types of transactions that the bankers must finance and arrange. Below are the three major groups.

M&A

As will be discussed later, the IBD serves to help provide advice on mergers and acquisitions of other companies who come to them. For example, if Google wanted to merge with Amazon, they would go to the Investment Banking Division of a bank like JP Morgan who would then advise them on whether it is a beneficial move. Their advice stems from research conducted by the team who values the companies involved and comes up with suitable prices for the deal to be carried out.

Equity Capital Market

This is where the bank helps provide advice to its clients on equity deals. Their work involves analysis of equity markets such as shares, options and futures.

Debt

Capital

Market

This group advises the bank's clients on how to raise capital through buying and selling debt securities.

Different Groups

Within the IBD there are also different groups that provide these services and advice to companies in certain sectors. These groups have help many different clients from governments to institutions.

TMT

TMT focuses on technology, media, and telecommunications industries. This group provides typical IBD services and advice to companies in these industries. The group assists with M&A, IPOs, private placements, and strategic advisory tailored to the TMT landscape.

FIG

Financial Institutions Group (FIG) focuses on serving financial institutions such as banks, insurance companies, asset management firms, and other financial service providers. The group helps with M&A, capital raising, strategic advisory, and regulatory guidance specific to the financial industry.

Energy and Utilities

This group helps companies working in the energy sector (oil, gas, renewables) and the utilities sector (electricity and water). They provide financial advice and services related to capital raising, project financing, M&A, and other transactions unique to the energy and utilities industries.

Consumer & Retail

This group focuses on providing financial advisory services to companies in the consumer and retail sectors which includes businesses involved in consumer goods, retail stores, e-commerce and restaurants.

Healthcare

Healthcare caters to companies in the healthcare and life sciences sectors, including pharmaceuticals, biotechnology, medical devices, and healthcare services. They provide expertise in M&A, capital raising, partnerships, and other financial transactions.

Industrials

Industrials works with companies in manufacturing, transportation, infrastructure, and other industrial sectors. They assist with M&A, divestitures, capital raising, and strategic advisory.

Real Estate

This group covers a range of real estate-related activities including commercial and residential real estate, real estate investment trusts (REITs) and lodging. They provide advisory services for property acquisitions, property development, REIT offerings, and other real estate-related transactions.

Mining / Natural Resources

This group deals with companies involved in natural resource industries, such as mining, metals, forestry, and agriculture. They offer financial advice for resource exploration, project financing, commodity hedging, and other transactions related to the extraction and management of natural resources.

Back to Learn