Overview of Investment Banking in Chicago

If we are talking about investment banks, Chicago has several investment banks. These banks help different businesses by providing various finance-related services and other services like raising financial capital or by acting as the client’s agent for the issue of securities. They help companies in mergers and acquisitions (M&A) along with providing services like market makingMarket MakingMarket makers are the financial institution and investment banks which ensures enough amount of liquidity in the market by maintaining enough trading volume in the market so that trading can be done without any problem.read more, trading of derivatives and equities, and services like Fixed Income instruments, currencies, and commodities.

What do Investment Banks in Chicago Do?

Investment banks like commercial or retail banks do not take deposits. They participate in other activities like cash managementCash ManagementCash Management refers to the appropriate collection, handling, & disbursement of cash for ensuring financial stability & avoiding insolvency risk. read more, professional management services for securities, capital exchange for equities share, etc. Mainly, investment banks deal with two categories- the sell category and the buy category. For sell type, the investment banks do trading in derivatives, securities, currencies and actively do research and underwritings. The buy type of investment banks helps advise the government or institutions for buying investments, mutual funds, hedge fundsHedge FundsA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.read more, equities, life insurance etc.

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Services Offered by Investment Banks in Chicago

Services offered by the investment banks in Chicago are-

  • Buy SideSell SidePrivate market financing

#1. Buy Side

Investment Banks workInvestment Banks WorkInvestment banking is a specialized banking stream that facilitates the business entities, government and other organizations in generating capital through debts and equity, reorganization, mergers and acquisition, etc.read more closely with the client to understand their financial position, financing needs, and overall corporate objectives. After that, they start exploring acquisitionAcquisitionAcquisition refers to the strategic move of one company buying another company by acquiring major stakes of the firm. Usually, companies acquire an existing business to share its customer base, operations and market presence. It is one of the popular ways of business expansion.read more ideas and contacting targets on the client’s behalf. Once the list of target companies is finalized, the expert in the bank gets into the task of valuing the companies using analytics and proprietary models to finalize the deal’s value. The senior management will track every step of the execution process of the deal, which also includes cost-effective and efficient channels of financing. In short, the steps in which the buy-side Buy-side The term “buy-side” refers to entities that advise their clients like individual investors and institutional buyers on investments and securities purchases. Private equity firms, mutual fund companies, life insurance companies, unit trusts, hedge fund companies, and pension fund entities are examples of buy-side firms.read more research team help the client are –

  • Idea generation for searching the target companiesValuing the target companies and deciding on the deal sizeAid the process of execution and financing the deals

#2. Sell Side

The professionals in the bank are experts in searching for buyers and developing specific strategies and marketing plans for the process of selling a company. In the selling process, negotiation plays a very important role as both the buyer and the seller are looking to maximize their benefit from it. The bank plays a very important role in minimizing this gap in expectation between the two sides. Another important aspect is to maintain complete confidentiality about the deal until the deal is closed. There is minimum disruption, and the process can be exercised faster.

#3. Private Marketing Finance

The bank provides the service of raising capital for the deal efficiently and cost-effectively. On top of that, they also provide expertise to crunch numbers to provide an optimal capital structureCapital StructureCapital Structure is the composition of company’s sources of funds, which is a mix of owner’s capital (equity) and loan (debt) from outsiders and is used to finance its overall operations and investment activities.read more for the deal and offer adequate solutions for raising capital.

Top Investment Banks in Chicago

Here are some of the bulge bracket investment banksBulge Bracket Investment BanksTop 10 bulge bracket investment banks are - Blackstone, Goldman Sach & co, Morgan Stanley, J.P Morgan Chase & co, Bank of America Merrill Lynch, Credit Suisse, Citi, Deutsche Bank, HSBC, UBS.read more in Chicago –

  • JP MorganGoldman SachsBank of America – MLHSBCUBSDeutsche BankMorgan StanleyCitibankCredit SuisseLazardWells Fargo

Below is the list of middle-market and boutique investment banksBoutique Investment BanksThe top boutique investment banks are - Perella Weinberg Partners (Global M&A Advisory – Boutique), Lazard (Global M&A Advisory), Rothschild (Global M&A Advisory – Boutique), Evercore Partners (Global M&A Advisory – Boutique), Greenhill & Co. (Global M&A Advisory – Boutique, Blackstone (Global M&A Advisory).read more in Chicago –

  • Madison Street CapitalPeakstone GroupXLS PartnersConcord Financial AdvisorsHoulihan CapitalDresner PartnersMDI InvestmentsCornhusker CapitalJ.H. Chapman Group, LLCSikich Investment BankingThe Chicago CorporationWolf CapitalStout Risius Ross Advisors, LLCStonegate Group Ltd.Lincoln International, LLCWestbrook CapitalKuhn CapitalBaker Tilly CapitalXMS Capital PartnersNavigant Capital AdvisorsWilliam Blair & CompanyLivingstone PartnersMB Financial BankLIFT AviationDark Horse Advisors LLCUBS Private Wealth Management- ChicagoBuilding Industry AdvisorsCook M&A Advisory ServicesStang Capital Advisory LLCRavinia CapitalInterOcean AdvisorsAuctus Group, IncFloyd & Co., Inc.Gar Wood Securities, LLCMetropolitan Capital Investment BancZacksInvestMarX Financial, Inc.KeyBridge Partners, Inc

Investment Banks in Chicago – Recruitment Process

It is extremely difficult to crack a job in top investment banks in Chicago. The rate of accepting a candidate in a top investment bank is much lesser than the rate of getting even into an Ivy League college. The acceptance rate is low because of the rigorous recruitment process these banks follow. The process starts with filling out the application. The chances of getting the application selected depend on many things, like very good academic records. The summer internship is done in the investment banks, relevant work experience, etc. If the application gets selected, the following steps are psychometric tests, the first round of interviews, and the second round of interviews. If a candidate clears all these steps, they are generally offered a 10 to 12 weeks summer internship analyst job, completing which the candidate is eligible to apply for a full-time job.

Investment Banks in Chicago – Culture, and Salaries

Working at an investment banking company presents an extreme culture. The craze for working in an investment bank is mainly due to its high pay and fat bonuses. The remuneration provided is as competitive as any other industry. With this high price tag comes a lot of hard work and uncertainty that goes into it.

In general, a banker in Chicago works for 80-120 hours per week and drinks endless cups of coffee to remain alert. The culture is unique, and people who can sustain this pressure are the ones who make a fortune for themselves. During the recession, if a bank wanted to fire an employee, they were generally asked to come for a sudden meeting, where they will be handed the pink slip, and from there, they will leave the bank, not even returning to their desk for one last time.

The starting salary of most of the investment bankers in Chicago ranges from $70,000 to $120,000, which goes up to as high as million dollars per year, including the bonus for a managing director and above. Below is a chart that depicts the average salary of a few investment banks in Chicago.

Source: indeed.com

Investment Banks in Chicago – Exit Opportunities

Many people bear the grind of working for over 100 hours a week on investment in Chicago because of the exit opportunities they get. Generally, investment banks act as a stair-step for jobs in Hedge Funds, top Private equity firmsTop Private Equity FirmsPrivate equity firms are investment managers who invest in many corporations’ private equities using various strategies such as leveraged buyouts, growth capital, and venture capital. The top private equity firms include Apollo Global Management LLC, Blackstone Group LP, Carlyle Group, and KKR & Company LP.read more, and venture capitals.

This has been a guide to Investment Banking in Chicago, their services offered, recruitment process, their culture, list of top investment banks in Chicago, investment banking salaries in Chicago, investment banking jobs in Ireland, and exit opportunities. You may also have a look at the following article for learning more about Investment Banking –

  • Investment Banking in San FranciscoTop Investment Banking in BostonInvestment Banking in CanadaInvestment Banking in PhilippinesInvestment Banking in Hong Kong