Chicago is one of the major financial hubs in the US and home to many renowned investment banks. In 2020, the top investment banks in Chicago can be identified based on several key factors – including market share, deal volume, revenue size, reputation and competitive advantages. Major players headquartered in Chicago include Goldman Sachs, JPMorgan Chase, Bank of America Merrill Lynch and William Blair. They have built strong platform and expertise in various sectors such as healthcare, industrials, consumer and technology. Meanwhile, boutique firms like Lincoln International and Houlihan Lokey also thrive with niche focus and high-quality services. As the investment banking industry becomes more competitive, these Chicago-based firms are leveraging unique strengths to stay ahead of the curve.
Goldman Sachs dominates league tables with top-tier advisory
Goldman Sachs is arguably the most prestigious investment bank in Chicago and nationwide. As a leading global firm, Goldman offers full-spectrum investment banking services covering mergers & acquisitions (M&A), equity/debt underwriting and sales & trading. According to Refinitiv, Goldman Sachs ranked No.1 in the Midwest for M&A deal volume and value in 2020. It advised on over 90 deals worth around $200 billion, giving the firm a market share of 39% in the region. Goldman has assembled an outstanding Midwest coverage team focusing on healthcare, consumer/retail, industrials and technology sectors. With global resources and unparalleled execution capabilities, Goldman Sachs continues to be the go-to advisor for complex, cross-border transactions.
JPMorgan Chase leverages commercial banking footprint
As one of the largest commercial banks globally, JPMorgan Chase has an extensive on-the-ground presence and distribution network across Chicago and other Midwest cities. This enables its investment banking arm to generate proprietary deal flows and win more mandates from middle-market companies. According to PitchBook, JPMorgan ranked third in overall deal count and second in aggregate deal value for Midwest transactions in 2020. While relatively small in M&A, JPMorgan has built up formidable franchises in debt capital markets (DCM), leveraged finance and equity underwriting over the years through superior execution.
BofA Securities integrates platform to capture full relationship
BofA Securities, formerly Bank of America Merrill Lynch (BAML), has an unmatched ability to provide one-stop financing solutions to clients by integrating investment banking with global markets and commercial banking units. As clients increasingly prefer to work with fewer banks that can meet diverse needs, BofA Securities is well-positioned to capture a greater share of wallet. It offers niche sector expertise in gaming & lodging, transportation & logistics, and healthcare services. In 2020, BofA Securities ranked fifth in announced M&A deal volume for the Midwest region with a 6% market share.
William Blair pursues quality over quantity in middle market
Unlike bulge bracket banks going after mega deals, Chicago-based William Blair focuses on middle-market transactions while maintaining high quality execution standards. William Blair’s sector coverage aligns well with the Midwest’s core industries – including industrial, consumer/retail, healthcare and financial services. Though small in size, William Blair consistently ranks among the top 10 investment banks by Midwest M&A volume. Known for its judicious risk management, the firm produces more stable revenues across market cycles compared to its peers. William Blair’s prudent and relationship-driven approach enables the firm to achieve both volume and value growth.
Boutiques carve out niche positions despite limitations
Compared to national full-service banks, Chicago-based boutiques such as Lincoln International and Houlihan Lokey face greater constraints in balance sheet, global reach and product capabilities. However, boutiques thrive by providing best-in-class services in certain niches – Lincoln International excels in valuations & opinions while Houlihan Lokey leads in restructuring. These firms leverage sector expertise, creativity and senior banker attention to cater to unique client needs. Though the boutique landscape remains fragmented, leading mid-market advisory firms continue to make meaningful market share gains at the expense of larger rivals.
In 2020, major Chicago-based investment banks like Goldman Sachs, JPMorgan and BofA Securities maintained leading positions across key league tables and ranking. Boutique firms also saw higher traction in securing advisory roles for niche sectors or situations. As the competitive landscape evolves, these players are leveraging distinct advantages to strengthen market positions.