As a major economic center in the United States, Texas has fostered some leading investment banks over the years. In 2020, despite the challenges of the COVID-19 pandemic, major investment banks in Texas continued to thrive by leveraging their expertise and connections in the energy, technology and healthcare sectors. This article will provide an overview of the top investment banks in Texas in 2020 and insights into their key strengths.
JPMorgan Chase tops in size and deal value
JPMorgan Chase stands out as the largest investment bank in Texas with operations across investment banking, asset management, private banking and commercial banking. According to Dealogic, JPMorgan Chase led deal values among investment banks in Texas in 2020, being involved in over $120 billion worth of M&A and equity deals. The bank leveraged its energy expertise to advise Occidental Petroleum’s $13 billion sale of Africa assets to Total. It also advised Southwest Airlines on a $1 billion equity offering.
Wells Fargo connects locally while expanding nationally
As a leading bank in Texas for many decades, Wells Fargo has maintained top market share in areas like commercial lending and middle market investment banking, serving many local firms. At the same time, Wells Fargo expanded key national practices like healthcare and technology investment banking in 2020. For example, it served as the lead left bookrunner on a $4 billion equity offering for San Antonio-based cloud computing company Rackspace Technology.
Houlihan Lokey dominates middle market deals
While not a household name like JPMorgan Chase or Wells Fargo, Houlihan Lokey has quietly become a leader in Texas middle market investment banking. The bank expanded its Dallas and Houston teams in sectors like industrials, consumer, healthcare and real estate. For privately-held middle market clients, Houlihan Lokey offers deep sector expertise combined with execution capabilities to provide M&A, capital raising and restructuring advice.
Boutiques firms deliver specialized advice
In addition to the Wall Street banks, Texas is also home to a vibrant ecosystem of boutique investment banks offering deep sector or product expertise. For example, Petrie Partners is focused exclusively on energy and utilities, with extensive relationships with private equity firms active in the sector. Meanwhile, Bourland Octopus focuses on healthcare, technology and renewables – positioning itself as a pure play on high growth sectors.
Despite market volatility, major investment banks demonstrated resilience in Texas during 2020. Leveraging distinct competitive advantages, they continue to advise corporate and investor clients across key economic sectors in the state.