Merchant/Investment Banks

Merchant banks and investment banks in essence offer different services. In reality however, both types of institutions have overlaps in services and functions. Generally, investment banks primary services include initial public offerings (IPOs) and large share offerings. Merchant banks on the other hand tend to service smaller-scale companies. They provide bridge, creative equity, and mezzanine financing,… More

Merchant banks and investment banks in essence offer different services. In reality however, both types of institutions have overlaps in services and functions. Generally, investment banks primary services include initial public offerings (IPOs) and large share offerings. Merchant banks on the other hand tend to service smaller-scale companies. They provide bridge, creative equity, and mezzanine financing, as well as a range of corporate credit products. Merchant banks service companies which are too small to negotiate a persuasive public share offering but too large for venture capital firms to service well. Investment banks focus more on larger companies. Investment banking clients generally would have outgrown trade financing and other related credit products. Whereas the types of clients that merchant banks tend to service would largely be interested in such products. Less