What Does Bulge Bracket Investment Bank Mean?
Bulge bracket investment banks are the largest entities and corporations in the financial world. The bulge bracket is comprised of top banks that include Bank of America, Merrill Lynch, Morgan Stanley, Citigroup, Deutsche Bank, UBS, Goldman Sachs, Credit Suisse, Barclays Capital and JP Morgan Chase. These banks are massive, multinational firms that tens of thousands employees worldwide.
Divestopedia Explains Bulge Bracket Investment Bank
Bulge bracket investment bank will work on deals over $1 billion but they may execute high profile deals in the upper mid-market. Similar to regional banks, the bulge bracket banks provide both advisory and financing services - and also provide asset management, trading, commercial banking, and insurance.
Pros of engaging a bulge bracket IB: Bulge bracket investment banks will garner the higher attention and exposure for sell-side mandates.
Cons of engaging a bulge bracket IB: If your company is one of the select few high profile mid-market deals suitable for bulge bracket investment banks, you will pay a significant fee premium for their expertise and brand power.