Investment Banking Division (IBD)

What is Investment Banking Division (IBD)?

Investment Banking Division (IBD) is a particular division of the investment bank which provides corporate finance and advisory services. It is responsible for capital raising by underwriterUnderwriterThe underwriters take the financial risk of their client in return of a financial fee. Market Makers like financial institution and large banks ensure that there is enough amount of liquidity in the market by ensuring that enough trading volume is there.read more, debt and hybrid markets as well as mergers and acquisitions and different types of advisory mandates.

Explanation

IBD provides advisory on transactions and helps arrange to finance for transactions and execute mergers and acquisitions. It consists of the following type of deals:

Investment Banking Division (IBD)

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Investment Banking Division Groups

Investment Banking Clients

Investment banker’s act as advisory to a wide range of clients for capital raising and Merger and Acquisition needs. Their clientele includes:

Investment Banking Division – Skills Required

Investment bankers who work in the IBD require a lot of financial modeling, valuation and excel skills for preparation of research reports, advising clients and completion of deals. The major skills required are mentioned as follows:

Job Titles

There is a particular job hierarchy within the IBD. The most common job titles starting from junior to the senior position are as follows:

  • Analyst – An analyst focuses exclusively on financial modeling, valuation work of companies, and pitchbook support.
  • Associate – An associate’s job is to manage the analyst, doing financial modeling and also drafting pitchbooks.
  • Vice President – The responsibility of Vice President is to manage the associates, designing pitch books as well as going for client meetings.
  • Director – The director leads the team, meets the clients and structures the deals.
  • Managing Director – He is focussed solely on acquiring new clients and business for the division.

Conclusion

The Investment Banking Division (IBD) acts as a bridge between the large enterprises and the investors where they play an important role in advising businesses and governments on how to overcome financial challenges and procure finance, whether it is from stocks, bond issues or derivative products.

This has been a guide to what is Investment Banking Division (IBD)? Here we discuss IBD Groups, including skills required and job titles.

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