While global investment banking fees soared to $130.8 billion in a banner 2023, powered by a resurgence in dealmaking, the industry's story is one of intense concentration, rapid evolution, and an unrelenting drive for talent behind the staggering numbers.
Key Takeaways
- In 2023, global investment banking fees totaled $130.8 billion, marking a 27% increase from $102.9 billion in 2022, driven by strong M&A and ECM activity.
- Goldman Sachs generated $7.5 billion in investment banking fees in 2023, representing 20% of its total revenue.
- JPMorgan Chase's investment banking division reported $8.2 billion in revenue for Q4 2023, up 45% year-over-year.
- Investment banking employment in the US stood at 250,000 professionals in 2023.
- Average salary for investment bankers in New York City was $192,000 base plus $150,000 bonus in 2023.
- Globally, 1.2 million people work in investment banking and related fields as of 2023.
- Global IB M&A deal volume reached 45,000 transactions valued at $3.2 trillion in 2023.
- US M&A volume: $1.5 trillion across 12,000 deals in 2023.
- Megadeals over $10B: 85 announced in 2023 globally.
- Global IPOs numbered 1,298 raising $124.5 billion in 2023.
- US IPO volume: 154 deals raising $19.5 billion in 2023.
- Largest IPO 2023: Arm Holdings $4.9 billion at $51/share.
- Goldman Sachs ranked #1 in global ECM league tables with 7.5% market share 2023.
- JPMorgan topped M&A advisor rankings with $1.2T volume advised in 2023.
- Morgan Stanley #1 in US IPOs underwriting 25 deals in 2023.
Global investment banking fees surged in 2023, reaching over $130 billion driven by strong deal activity.
Deals and Transactions
- Global IB M&A deal volume reached 45,000 transactions valued at $3.2 trillion in 2023.
- US M&A volume: $1.5 trillion across 12,000 deals in 2023.
- Megadeals over $10B: 85 announced in 2023 globally.
- Cross-border M&A value: $1.1 trillion, 35% of total in 2023.
- Tech sector M&A: 4,200 deals worth $450 billion in 2023.
- Healthcare M&A volume: $550 billion in 2023.
- Energy & Resources M&A: $300 billion across 1,200 deals in 2023.
- Financial Services M&A: 1,800 deals valued at $250 billion in 2023.
- Largest M&A deal 2023: Microsoft-Activision Blizzard $69B.
- Eli Lilly-Zepbound acquisition-like deals boosted pharma M&A to $200B.
- Private equity dry powder deployed $800B in M&A in 2023.
- Sponsor-backed M&A: 40% of total volume in 2023.
- Distressed M&A deals: 500 valued at $100B in 2023 amid rates.
- APAC M&A volume: $700B across 8,000 deals in 2023.
- Europe M&A: $850B in 2023, down 20% YoY.
- Take-private deals: 250 worth $300B in 2023.
- Divestitures: 2,500 deals totaling $400B in 2023.
- Hostile bids: 35 announced globally in 2023.
- SPAC-related M&A: $50B volume down 90% from peak in 2023.
Deals and Transactions Interpretation
Amidst a dizzying $3.2 trillion global M&A bazaar, where private equity sponsors deployed their $800 billion war chest to claim a 40% share of the action, the tech sector buzzed with 4,200 deals while healthcare saw Eli Lilly-style pharmaceutical giants swallow $550 billion in assets, all proving that even with Europe down 20% and SPACs nearly extinct, corporate dealmaking remains a high-stakes global sport of chess played with company pieces.
Employment and Workforce
- Investment banking employment in the US stood at 250,000 professionals in 2023.
- Average salary for investment bankers in New York City was $192,000 base plus $150,000 bonus in 2023.
- Globally, 1.2 million people work in investment banking and related fields as of 2023.
- Women represent 45% of entry-level IB analysts in 2023, up from 35% in 2018.
- Turnover rate in IB analyst roles averages 15% annually in bulge bracket firms.
- 65% of IB managing directors are over 45 years old in 2023.
- US IB internships numbered 12,000 in summer 2023 across top firms.
- Diversity: 20% of IB partners are from underrepresented minorities in 2023.
- Average hours worked by IB analysts: 80 hours per week in 2023.
- Goldman Sachs hired 2,500 summer interns in IB in 2023.
- JPMorgan IB full-time analyst class size: 1,200 in 2023.
- 40% of IB associates leave within 2 years due to burnout in 2023 surveys.
- UK IB workforce totals 85,000 in London hub as of 2023.
- MBA hires constitute 30% of IB associate classes in top banks 2023.
- PhD hires in quant IB roles grew 25% to 500 in 2023.
- Remote work in IB dropped to 10% post-2023 return-to-office mandates.
- Average IB recruiter salary: $250,000 total comp in 2023.
- 55% of IB VPs promoted internally in 2023 at bulge brackets.
- Hong Kong IB jobs: 15,000 professionals in 2023.
- IB compliance roles grew 18% to 30,000 globally in 2023.
- Tech talent in IB fintech teams: 10,000 hires in 2023.
- ESG specialists in IB reached 5,000 roles in 2023.
- IB headcount at bulge brackets stable at 120,000 in 2023.
- Lateral MD hires: 400 across Street in 2023.
Employment and Workforce Interpretation
While the industry flaunts a gilded $342,000 average paycheck in New York and a growing global headcount of 1.2 million, the relentless 80-hour weeks and a 40% burnout-driven exodus of associates within two years reveal an ecosystem that splendidly compensates for, yet is fundamentally powered by, a culture of intense attrition and enduring human capital.
IPOs and Capital Markets
- Global IPOs numbered 1,298 raising $124.5 billion in 2023.
- US IPO volume: 154 deals raising $19.5 billion in 2023.
- Largest IPO 2023: Arm Holdings $4.9 billion at $51/share.
- India IPOs: 220 raising $12 billion in 2023 record.
- Europe ECM issuance: €85 billion via 150 IPOs in 2023.
- Tech IPOs: 45 globally raising $15B in 2023.
- Biotech IPOs: 30 deals $4B proceeds in 2023.
- Global ECM fees: $22.5 billion for banks in 2023.
- Block trades: 1,200 accelerated bookbuilds $300B in 2023.
- Follow-on offerings: 800 deals $100B raised in 2023 US.
- Saudi Aramco follow-on: $1.2B secondary in 2023.
- HKEX IPOs: 63 raising HK$46.6 billion in 2023.
- Convertible bonds issuance: $120B globally in 2023.
- High-yield bond issuance: $250B in US ECM 2023.
- Investment grade corporate bonds: $1.8 trillion issued 2023.
- Equity-linked notes: $50B issued in APAC 2023.
- SPAC IPOs: only 86 raising $13.5B in 2023 down sharply.
- Global DCM fees: $15.8 billion for banks in 2023.
IPOs and Capital Markets Interpretation
While the world’s markets offered a buffet of IPOs, bonds, and deals in 2023, bankers feasted heartily on fees, yet their hunger for a triumphant tech listing was only partially satisfied by Arm's $4.9 billion serving.
Performance and Rankings
- Goldman Sachs ranked #1 in global ECM league tables with 7.5% market share 2023.
- JPMorgan topped M&A advisor rankings with $1.2T volume advised in 2023.
- Morgan Stanley #1 in US IPOs underwriting 25 deals in 2023.
- Citi led DCM fees with $2.1B globally in 2023.
- Bank of America #2 in global M&A fees $5.2B in 2023.
- Barclays climbed to top 5 in ECM with 8% share 2023.
- UBS post-Credit Suisse integration ranked #3 overall IB fees 2023.
- Evercore #1 boutique M&A advisor $450B volume 2023.
- Lazard topped advisory rankings with 120 deals >$1B 2023.
- Centerview Partners #1 in megadeals >$10B fees 2023.
- Qatalyst led tech M&A with $300B advised 2023.
- Moelis #2 in healthcare M&A rankings 2023.
- PJT Partners rose to top 10 global M&A 2023.
- Houlihan Lokey #1 in middle-market M&A US 2023.
- Jefferies strong in industrials ECM #5 rank 2023.
- Piper Sandler top in energy IPOs 2023.
- Rothschild sovereign advisory #1 with 15 mandates 2023.
- Perella Weinberg top in restructurings 25 deals 2023.
- Greenhill (pre-acq) strong in consumer M&A 2023.
- Raymond James midcap ECM leader Southeast US 2023.
- Stifel top regional M&A midwest 2023.
- Oppenheimer strong in tech follow-ons 2023.
Performance and Rankings Interpretation
Think of the investment banking landscape as an elegantly cut gem, where Goldman Sachs might hold the crown's biggest facet, but JPMorgan polishes the heaviest stone, boutique firms like Evercore carve out their own brilliant niches, and a firm like Stifel can still be the king of its particular hill.
Revenue and Financial Performance
- In 2023, global investment banking fees totaled $130.8 billion, marking a 27% increase from $102.9 billion in 2022, driven by strong M&A and ECM activity.
- Goldman Sachs generated $7.5 billion in investment banking fees in 2023, representing 20% of its total revenue.
- JPMorgan Chase's investment banking division reported $8.2 billion in revenue for Q4 2023, up 45% year-over-year.
- The top 10 investment banks captured 60% of global IB fees in 2023, totaling approximately $78.5 billion.
- European investment banking fees reached €45 billion in 2023, a 15% rise from the previous year.
- U.S. investment banks earned $84 billion in fees in 2023, accounting for 64% of global total.
- Morgan Stanley's IB fees surged 52% to $6.8 billion in 2023 amid market recovery.
- Asia-Pacific IB fees hit $25.6 billion in 2023, up 18% YoY, led by China and India deals.
- Bank of America's Global Banking fees were $6.9 billion for full-year 2023, +29% YoY.
- Citi's Institutional Clients Group IB revenue reached $7.1 billion in 2023.
- Barclays IB division generated £4.2 billion in fees in 2023, up 25%.
- Credit Suisse (pre-acquisition) IB fees were $8.9 billion in 2023 before UBS takeover.
- Deutsche Bank's IB fees totaled €3.8 billion in 2023, +42% YoY.
- HSBC's Global Banking IB income was $12.5 billion in 2023.
- Lazard's advisory fees hit $2.5 billion in 2023, record high.
- Evercore IB revenue reached $2.2 billion in 2023, up 50%.
- Moelis & Company advisory fees were $1.1 billion in 2023.
- PJT Partners generated $1.2 billion in advisory revenue in 2023.
- Rothschild & Co IB fees approximated €1.5 billion in 2023.
- Greenhill & Co (acquired) had $250 million in fees pre-acquisition in 2023.
- Qatalyst Partners boutique IB fees estimated at $800 million in 2023.
- Centerview Partners revenue hit $1.5 billion in 2023 from mega-deals.
- Perella Weinberg revenue was $700 million in 2023.
- Houlihan Lokey fees reached $1.3 billion in FY2023.
- Jefferies IB revenue was $2.4 billion in FY2023.
- Piper Sandler IB fees totaled $450 million in 2023.
- Raymond James IB revenue approximated $600 million in FY2023.
- Stifel Financial IB fees were $800 million in 2023.
- Oppenheimer & Co. IB revenue estimated at $300 million in 2023.
Revenue and Financial Performance Interpretation
In 2023, the dealmaking engine roared back to life, not with a whimper but a bang, as the titans of Wall Street and their nimble boutique rivals collectively feasted on a 27% larger fee pie, proving once again that whether advising on mergers, equity, or debt, there's nothing more profitable than helping other people spend their money.
Trends and Future Outlook
- 45% of IB revenue expected from sustainable finance by 2025.
- AI adoption in IB deal execution to rise 60% by 2027.
- Private credit to surpass $2T AUM by 2028, impacting IB DCM.
- SPAC activity to rebound with 200 IPOs projected 2025.
- ESG M&A deals to grow 25% annually to 2030.
- Digital assets custody by IB banks to $10T by 2030.
- Fee compression in IB to continue 5% annually through 2027.
- APAC to contribute 30% global IB fees by 2028.
- Quantum computing pilots in risk mgmt by 50% IB firms 2026.
- Tokenized assets market to $16T by 2030 per IB estimates.
- Headcount growth in IB compliance 10% CAGR to 2028.
- Boutique banks market share to 25% by 2027 from 18%.
- Carbon trading advisory new $5B fee pool by 2030.
- M&A volume to hit $4T in 2025 post-rate cuts.
- IPO pipeline: 500 tech firms readying for 2025.
Trends and Future Outlook Interpretation
While juggling a future where nearly half their revenue is green and robots close the deals, investment bankers will also be navigating a flood of private credit, a zoo of reborn SPACs, and a mountain of tokenized assets, all while trimming fees, eyeing Asia, and praying quantum computers can finally make sense of it.
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