Los Angeles has emerged as a major hub for investment banks and financial institutions over the past few decades. With its close proximity to the technology, healthcare, entertainment and other innovative industries in California, LA provides fertile ground for dealmaking and financing activities. In this article, we will take a look at some of the top investment banks that have made Los Angeles their home.
The investment banks in Los Angeles provide services like underwriting IPOs, brokering mergers and acquisitions, providing strategic advice, and helping companies raise capital through debt and equity issuances. With Los Angeles continuing to nurture startups and high-growth companies in sectors like biotech, fintech, e-commerce and more, these financial institutions will play a key role in funding innovation and economic growth in the region. Some of the notable investment banks in LA include Goldman Sachs, JP Morgan, Morgan Stanley, and boutique firms like LionTree Advisors.
Goldman Sachs has deep roots and major operations in Los Angeles
Goldman Sachs is a global investment banking powerhouse that established a presence in Los Angeles back in the 1960s. Today, it has over 800 employees in LA providing services in investment banking, asset management, private wealth management and more. The bank has been involved in major IPOs for LA-based companies like Snap, Virgin Galactic, Beachbody and Fisker among others. Its M&A and private financing deal sheet includes advising on Disney’s acquisition of 21st Century Fox and Tencent’s investment in Snapchat. Goldman offers equity, credit and real estate financing to companies and projects based in Los Angeles and the broader Western US region. The bank is also making venture capital investments in LA-based startups via its Launch With GS program.
JP Morgan is active across equity, debt and M&A markets in LA
JP Morgan has operated in California for over 100 years and has been steadily expanding its presence in Los Angeles. The bank has advised on over $600 billion of M&A transactions for LA-based companies since 2000. This includes mega deals like Disney’s acquisition of Pixar, Liberty Media’s acquisition of a stake in Sirius XM Radio, and more recently, Amgen’s $13.4 billion takeover of Decode Genetics. In addition to its M&A franchise, JP Morgan also has equity and debt capital markets teams in LA to support IPOs and other financing needs for local firms. For instance, it was a lead underwriter on Beyond Meat’s 2019 IPO that raised $240 million. JP Morgan’s commercial banking unit provides loans, treasury services and more to mid-sized businesses across the LA metro region.
Boutique LA-based LionTree Advisors punches above its weight in tech and media deals
Founded in 2012 by former UBS media banker Aryeh Bourkoff, LionTree has quickly gained prominence as a leading tech and media-focused investment bank based out of Los Angeles. Though much smaller than bulge bracket banks, LionTree has advised on some of the biggest media, entertainment and tech transactions involving LA-based companies. Its deal sheet includes Liberty Media’s $23 billion acquisition of SiriusXM Radio, AT&T’s $49 billion acquisition of DirecTV, Discovery’s acquisition of Scripps Networks and Snapchat’s $187 million Series F funding round. LionTree focuses on providing high-touch strategic and financing advice to clients in the technology, media, telecom and consumer internet sectors. Its LA headquarters and deep connections across the SoCal business community have been key to growing its presence.
Los Angeles has nurtured a vibrant financial services ecosystem that provides critical access to capital and advice for companies in high-growth industries. With nationally leading investment banks like Goldman Sachs and JP Morgan anchored in LA along with respected boutique firms like LionTree, the region’s companies have local support to achieve their strategic and financing objectives. As greater innovation and entrepreneurship take root in Southern California, Los Angeles’ prominence as an investment banking hub will likely continue ascending.