As a major business and energy hub, Houston is home to many prestigious investment banks. In 2020, the Houston investment banking scene continues to thrive, with both global bulge brackets and boutique firms finding opportunities in the city’s key industries. This article provides an overview of the top investment banks in Houston for 2020.
The list includes major players like JPMorgan and Goldman Sachs that cover a wide range of sectors, as well as specialized boutiques focused on energy, healthcare, and technology. We will analyze the strengths of each bank, discussing their areas of expertise, deal activity, office size, and overall influence. Understanding Houston’s investment banking landscape equips students and young professionals with valuable insights for recruiting and networking.
With oil prices stabilizing in 2020, deal flow in Houston’s dominant energy sector is picking up after a sluggish few years. Meanwhile, the technology and healthcare industries continue their strong growth, bringing new business opportunities. As Houston investment banks vie for mandates across diverse sectors, this list serves as a guide to the major players in the market.
JPMorgan Chase rules the market with strength across sectors
JPMorgan Chase is Houston’s largest investment bank, leveraging its global platform and restructuring expertise. The bank covers all major industries, routinely ranking #1 in regional M&A deal volume.
JPMorgan has over 600 staff in Houston, more than triple its nearest competitors. It advises on billion-dollar oil and gas transactions, leads landmark healthcare deals like UnitedHealth’s $4.3 billion buyout of DaVita Medical, and backs key tech unicorns in Texas.
While JPMorgan houses elite energy and healthcare groups, it is also the go-to bank for industrials, chemicals, and cross-border deals. JPMorgan’s dominance reflects its scale and ability to staff large, complex transactions.
Students interested in a broad investment banking experience would do well to target JPMorgan in Houston. Its extensive training programs, analyst class size, and deal flow make JPMorgan a top destination for aspiring bankers.
Goldman Sachs leverages M&A strength across industries
Though smaller than JPMorgan, Goldman Sachs punches well above its weight in Houston investment banking. Goldman relies on sector expertise and key senior bankers to win marquee M&A deals.
Like JPMorgan, Goldman Sachs covers energy, industrials, chemicals, healthcare, and technology from its Houston office. It has a long track record advising prominent energy companies and private equity firms like NGP.
Goldman Houston’s recent highlights include Textron’s $1.4 billion acquisition of Arctic Cat and the IPO of oil and gas producer Alta Mesa. The bank also has an active restructuring practice, advising Sanchez Energy through bankruptcy.
For students interested in generalist M&A roles, Goldman’s team approach and rigorous training program offer solid preparation. The Houston office provides exposure to big-ticket transactions while avoiding the cutthroat environment of New York.
Boutique banks thrive on industry specialization
While bulges like JPM and Goldman cover all sectors, Houston is also home to elite boutique investment banks. By specializing in key industries, these firms match Wall Street standards for expertise.
Evercore has a 20+ strong energy team positioning it as the top pure play oil and gas advisor. It excels at large cap M&A, advising Anadarko on its $55 billion sale to Occidental.
Other notable energy boutiques include Tudor Pickering Holt, Piper Sandler, and Intrepid. These firms offer intimate oil and gas domain knowledge.
In healthcare, boutiques like Cain Brothers and Ziegler dominate M&A among hospitals, physicians, and payors. Their partners have clinical backgrounds as physicians and nurses.
Boutique banks provide opportunities to gain deep industry knowledge and work on marquee transactions early in your career. They tend to promote faster than megabanks while offering better work-life balance.
Specialty groups within the bulge brackets
Students aiming for elite oil and gas or healthcare groups need not rule out the global banks. JPMorgan, Goldman, and Morgan Stanley house top tier industry groups in Houston.
For example, JPMorgan’s 40+ strong energy franchise offers dedicated coverage of E&P, services, pipelines, and refining. It hires many laterals from boutiques.
Morgan Stanley has built a #1 rated healthcare investment banking practice. Its tech franchise is also robust, focusing on software and services.
Divisions like these allow students to gain specialized expertise with the resources of a global bank. Headcount tends to be more limited than in generalist groups, so competition is fierce.
But for students committed to energy or healthcare, joining a bulge bracket specialist team offers the best of both worlds.
In conclusion, Houston’s investment banking landscape provides opportunities across diversified sectors. While megabanks rule through scale and broad coverage, elite boutiques thrive by nurturing industry expertise. Houston has something to offer every young professional, whether your interests lie in generalist banking, M&A, healthcare, energy or technology.