Los Angeles has emerged as a major financial center and home to some of the top investment banks in the country. The city provides access to key West Coast markets and clients. Some of the most prominent investment banks based in LA include Goldman Sachs, Morgan Stanley, Citigroup and Bank of America Merrill Lynch among others. These banks advise on mergers and acquisitions, underwrite IPOs, provide wealth management and facilitate trading and research for institutional clients. They compete for business from major LA corporations, fast growing tech firms and high net worth individuals in entertainment, real estate and other industries. The leading investment banks have expanded their presence in LA in recent years to tap into the dynamic local economy. They are investing in top talent and leveraging their global platforms to differentiate themselves.
Goldman Sachs has a major presence
Goldman Sachs has had operations in Los Angeles since the 1960s and today has over 1,000 employees in the city. The firm covers corporates, asset managers, financial institutions and government entities across sectors like tech, media, healthcare and real estate. It recently advised Ring LLC on its $1 billion acquisition by Amazon and FaceFirst on its sale to Airbus. Goldman provides M&A advice, raises capital via debt and equity offerings and engages in proprietary investing activities. It’s considered one of the top investment banks globally.
Morgan Stanley continues to expand
Morgan Stanley has been in LA since the 1970s and employs around 1,000 people in the region. It works with established corporates and startups across technology, defense, aerospace, retail and other sectors. The bank recently hired a new Head of West Coast Investment Banking from Citi to continue expanding its presence. Key strengths include raising capital, advising on M&A deals and providing prime brokerage services. Prominent recent transactions include advising anywhere365 on its sale to Cisco and representing Chernin Group in an investment from Providence Equity.
Citigroup leverages global footprint
Citigroup has operated in LA since the 1960s and its investment banking arm employs several hundred people across sectors like tech, media and healthcare. It offers capital raising, M&A advisory, derivatives trading and corporate lending services. Citi recently represented Paramount Pictures in a $1 billion investment by Shanghai Film Group and Wanda Group. It also has market leading franchises in entertainment finance, aerospace lending and Mexican M&A. Citi’s global reach and access to capital allow it to facilitate large cross-border transactions.
BofA’s full-service investment bank
Bank of America Merrill Lynch (BofAML) has had an LA presence since the 1970s. Today its investment banking team provides M&A, equity and debt capital markets, and lending services from the city. BofAML covers sectors like entertainment, technology, industrials, real estate and healthcare. Recent highlights include advising Dollar Shave Club on its $1 billion sale to Unilever and arranging $125 million in financing for Ring. The bank can leverage BofA’s commercial banking and global wealth management units to win business.
Boutiques fill industry niches
In addition to the large banks, LA is home to numerous boutique investment banks that cater to specific industries or services. Examples include Causeway Capital serving lower middle market companies, JMP Group focused on healthcare and technology, and Granite Creek Partners providing M&A advice for industrials sector clients. The boutiques thrive by leveraging deep sector expertise and strong client relationships. They complement the services offered by major banks.
Los Angeles has developed into a key hub for top investment banks in recent years including industry leaders like Goldman Sachs, Morgan Stanley and Citigroup. The banks are investing heavily to tap into the region’s deal flow and win business from major corporates, fast growing startups and high net worth individuals. They provide a full suite of services related to strategic advisory, mergers and acquisitions, IPOs and capital raising. The presence of top global investment banks combined with niche boutiques makes LA a dynamic hub for banking services on the West Coast.