What Does Private Investment Banker Mean?
A private investment banker provides a number of services related to middle market deal making such as acquisitions, divestitures and financings.
Private investment banker refers to a practitioner that provides advice on transactions in the lower and middle market between $5 million and $150 million. They usually practice in boutique or regional investment banks rather than the bulge bracket firms such as Goldman Sachs, Credit Suisse, Morgan Stanley, etc.
The ability to raise capital and deal complexity distinguishes an M&A intermediary from a private investment banker. Private investment bankers are generally more active in raising equity or private placements and have more experience with complex transactions such as MBOs and recapitalizations.
Public investment bankers, on the other hand, will have more experience with access to the public markets, use of public auction techniques, tender offers and IPOs. Public investment bankers also typically work on larger transactions with enterprise values of $50 million plus.