nvestment banking firms â€“ Examples
Some examples of investment banking firms are stated below:
Goldman Sachs (GS) â€“ This investment banking firm is one of the oldest and well-known investment banking firms in the U.S. It was founded in 1869. Its headquarters are based in New York City. They offer a varied range of services ranging from investment banking, to investment management, institutional client services, lending, etc.
JP Morgan Chase (JPM): JP Morgan investment banking firms is one of the largest investment banks. JP Morgan has more than 250,000 employees. These employees basically operate in consumer and community banking sectors, and besides investment banking their services include asset and wealth management, corporate and commercial banking, etc.
Barclays (BCS) â€“ BCS is an investment banking firm that was founded in 1896, in London. This investment bank has more than 80,000 employees all over the world.
Deutsche Bank (DB) â€“ Deutsche Bank (DB) is an investment banking firm which is basically a Germany based investment firm.
Role of investment banking firms
The main roles that are in investment banking firms are of:
Analyst â€“ The first role in the investment banking firm is of the analyst. The analyst is basically whose main role is to create financial models. This is the first role of the investment banking firm which performs the company valuations, relative valuations etc.
Associates â€“ The other role of the investment banking firm is of an associate. An associate is a person whose role is to check the work of the analyst. So, they are one level up over and above the analyst. This is the reason they are known as associates. An associate writes a text for the presentations, overlooks the job of an analyst. The associates sometimes interact with clients as well.
Vice President â€“ The role of the Vice President in the investment banking firm is to handle projects. Therefore, the vice president handles the structure of the presentation before going to the meeting. The vice president of the investment banking firm also talks to the analysts and the associates.
Managing Director â€“ The last role of the investment banking firm is of the Managing Director. The managing director is like a protagonist of the story. There are various roles performed by him, but basically the managing director develops the relationships with the clients by attending conferences. The clientage is increased by the help of the managing director and his primary role is to bring business to the company.
Offices of Investment banking firms
Investment Banking Front Office â€“ The main responsibility of the investment banking firm is of the front office. This means that the front office is the face of the organizations. Therefore, the front office deals directly with the clients.
Investment Banking Middle Office â€“ The second responsibility is of the middle office of the investment banking firm. The key responsibility of the middle office is to actually interact with the front Office. The middle office ensures that they do not engage in any set of activities in which there is a lot of risks for the investment bank to take.
Investment Banking Back office â€“ The third office is the back office of the investment banking firm. They are the ones who would be considered to be working in a Back Office in an investment bank. This office does not interact with the clients. In the back office basically the operations workers or the operation employees perform certain set of activities to ensure the smooth functioning of the business or the investment bank.