The investment banking industry in the US is dominated by several key players that consistently rank at the top in terms of deal flow, exit opportunities, and prestige. Based on industry data from 2020, the top investment banking groups in the US include Goldman Sachs, Morgan Stanley, JPMorgan, Bank of America Merrill Lynch, and Citigroup. These banks advise on high-profile M&A deals and equity offerings, particularly for technology, healthcare, and consumer companies. Their technology, media & telecom (TMT) groups are especially sought-after. Beyond the bulge brackets, boutique banks like Evercore, Lazard, and Moelis also have strong reputations in advising on large deals.
Goldman Sachs Has the Top Investment Banking Franchise Led by Its Renowned TMT Group
Goldman Sachs has long been considered one of the most prestigious investment banks globally thanks to its high-profile deals, intellectual culture, and powerful network. Its investment banking division brings in over $9 billion in annual revenues through M&A, equity issuances, debt issuances, and other advisory services. The firm has particularly dominant practices in TMT and healthcare. For example, Goldman served as an exclusive advisor to Microsoft on its $19.7 billion acquisition of Nuance Communications. It also co-advised Australian fintech AfterPay alongside boutique bank Qatalyst Partners on AfterPay’s $29 billion sale to Block. Prestigious deals like these have cemented Goldman’s reputation as the number one investment bank.
Morgan Stanley Competes Closely with Dominant M&A and IPO Capabilities
While Goldman Sachs leads in terms of deal volume and prestige, Morgan Stanley actually generates more investment banking fees thanks to its strength in large M&A transactions. The bank advised network security company Proofpoint on its $12.3 billion sale to private equity firm Thoma Bravo, earning Morgan Stanley over $80 million in fees. This type of jumbo M&A deal is Morgan Stanley’s specialty. At the same time, the bank has been ramping up its equity underwriting business by leading some of the hottest IPOs in the technology sector.
Boutique Investment Banks Punch Above Their Weight in Key Sectors
In addition to the bulge bracket titans, elite boutique investment banks have carved out strong reputations in covering certain high-growth sectors. For example, Qatalyst Partners based in San Francisco has established itself as the go-to advisor for prominent tech companies in Silicon Valley. Despite having less than 100 employees, Qatalyst has advised on over $500 billion in landmark deals, often securing big premiums for founders and investors. Similarly, Moelis & Company which focuses on M&A has been hired by an impressive list of clients thanks to its smart personnel and hands-on approach.
Diverse Groups of Investment Banks Serve Different Client Needs
The top investment banking groups in 2020 demonstrate the variety of firms operating in this competitive industry. Goldman Sachs and Morgan Stanley may lead in prestige, but commercial banks like JPMorgan and Citi have balance sheet strength and lending capabilities those firms lack. At the same time, elite boutiques thrive due to their working cultures and sector expertise. Ultimately, corporate clients have many options to choose from based on their objectives and situations when looking for financial advisors.
In 2020, Goldman Sachs and Morgan Stanley stand out as the top investment banking groups in the US thanks to their marquee deal flow, intellectual pedigree, and TMT coverage. However, bulge bracket peers and specialized boutiques continue to win business through balance sheet support and superior advice.