Atlanta has emerged as a major hub for investment banking in recent years. As the economic and financial center of the Southeastern U.S., Atlanta is home to the headquarters of several major corporations across industries like Coca-Cola, Home Depot, UPS, Delta Air Lines, and SunTrust Banks. This concentration of large companies has attracted many top investment banks to open regional offices in Atlanta. The city’s fast-growing economy, business-friendly environment, and wealth of talented professionals make it an ideal location for investment banking activities. In this article, we will look at some of the top investment banks in Atlanta and the key growth opportunities they are capitalizing on.
Top national investment banks with strong presence in Atlanta
Many of the largest investment banks in the U.S. maintain a major regional presence in Atlanta to serve the vibrant corporate sector. Goldman Sachs, Morgan Stanley, JP Morgan, Bank of America Merrill Lynch, Wells Fargo Securities, and Credit Suisse all have offices in Atlanta employing hundreds of bankers. They provide services like M&A advisory, IPO underwriting, debt and equity financing, and more for both public and private companies across industries. Beyond the bulge bracket firms, mid-market banks like Raymond James, William Blair, and Jefferies also have Atlanta outposts to pursue mid-cap deals.
Leading regional investment banks headquartered in Atlanta
In addition to the national investment banks, Atlanta is also home to a number of successful regional investment banks. Notable examples include SunTrust Robinson Humphrey, Stephens Inc., and Cain Brothers. SunTrust Robinson Humphrey is part of SunTrust Bank and specializes in sectors like telecom, tech, healthcare, and real estate. Stephens Inc. provides corporate finance, research, and wealth management services. Cain Brothers focuses solely on healthcare and has completed over $500 billion in healthcare-related transactions. The deep expertise and relationships these regional banks possess in their sectors are valued by clients across the Southeast.
Growing investment banking presence to serve the technology sector
The technology industry in Atlanta has seen rapid growth recently. To keep up with rising demand, major investment banks like BofA Securities, Goldman Sachs, and Morgan Stanley have all expanded their tech investment banking teams in the city. These teams cater to fast-growing sectors like financial technology, digital media, cloud computing, cybersecurity, and software. The tech investment banking coverage ranges from early-stage venture capital raises to IPOs and M&A for more mature companies.
Increasing deal flow and fundraising for private equity funds
Along with corporations, private equity groups are also driving investment banking fee revenue in Atlanta. According to PitchBook, private equity deal value in Atlanta totaled $12 billion in 2020, up 11% from the previous year. As PE firms like Roark, Cortec, and Resurgens continue to raise new funds, they provide investment banks with opportunities to advise on acquisitions, recapitalizations, growth equity investments and more. Banks can also earn fees by helping PE firms raise capital from institutional investors.
More IPOs and follow-on offerings by Atlanta-based companies
The IPO market remains an important source of fees for investment banks in Atlanta. A number of high-profile Atlanta companies like First Advantage, Sweetgreen, and Sharecare have gone public over the last couple years. As more startups and PE-backed companies locate to Atlanta, the deal pipeline will continue growing. Investment banks can capitalize on these IPO opportunities while also supporting subsequent follow-on equity and debt offerings as companies scale up.
Atlanta’s accelerating economic expansion bodes well for the investment banking industry. Major national and regional banks are committing more resources to capture M&A, IPO, fundraising, and other deal activity. Key growth areas include technology, private equity, and an emerging startup ecosystem.