Regional Investment Bank

What Does Regional Investment Bank Mean?

As the name implies, regional investment banks typically focus on a certain area or region. These firm will have multiple offices with a national presence. Some banks may even have operation in many different countries. Deal for regional investment banks can be comparable in size to the bulge bracket i-banks but often they will be less than $1 billion. Typical deal size will be higher than the boutiques and range between $100 million to $1 billion in enterprise value.

Divestopedia Explains Regional Investment Bank

Most regional investment will focus on capital raising or mergers and acquisitions (buy and sell side engagements) but the large regional i-banks will provide a full suite of services including equity and debt capital markets, leverage finance and restructuring services. Examples of larger well know regional investment banks would be Lazard, Rothschild, Houlihan Lokey, Jefferies & Co..

Pros of engaging a regional investment bank: Regional investment banks provide similar service of a boutique firm, but can also offer comparable resources and deep industry knowledge of a bulge bracket investment bank.

Cons: Fees charged by regional investment banks will typically be higher than boutique investment banks due to higher overhead costs in these firms. In some instance, deals that are smaller or lesser in profile may receive a lower level of attention as lead dealmakers are occupied with larger transactions.