How big is the Merchant Banking Market | Size & Key Players 2025

What is the size of Merchant Banking Market?

The market is developed from vibrant capital markets, an increase in cross-border investment, and an active private equity market, all of which have increased demand for advisory, restructuring and financing services. Merchant banks are also experiencing increasing interest from SMEs and startup businesses for proactive and strategic assistance for mergers and acquisitions and long-term financial planning.

Growth Factors for Merchant Banking Market

• Growing demand for corporate advisory services in mergers, acquisitions, and restructuring
• Increased private equity and venture capital activity in emerging economies
• Rising number of startups and SMEs requiring strategic financial planning
• Expansion of capital markets and cross-border investment opportunities
• Digitization of banking operations enhancing service delivery and efficiency

Merchant Banking Market Trends

The merchant banking market is experiencing a trend towards sector-specific advisory services, especially in healthcare, technology, and green energy investments. Shifting due in part to digitisation, the emergence of new global markets, and changing client needs. Banks are utilizing data analytics in the structuring of financial solutions and risk assessments. There is also a shift from transactional banking to transaction-based advisory relationships, which help to facilitate the complete lifecycle of financial structure.

Emerging Developments in the Merchant Banking Market

The Merchant Banking market is experiencing emerging developments, including the initial usage of blockchain, which seeks to create secure transaction handling and increase transparency. Additionally, sustainable finance is building traction and merchant banks are starting to consider ESG aligned investment banking services. Merchant banks are also starting to emphasise their mid-cap and SME clients with digitised and scalable offerings, decreasing process costs associated with operations and leveraging other peoples' funds. Strategic partnerships between banks and fintech will most likely develop to reshape the service offerings of many merchant banks.

List of Leading Companies in the Merchant Banking Market

Below is a comprehensive list of the leading market players driving growth in this sector:

1. J.P. Morgan

J.P. Morgan provides comprehensive merchant banking solutions, including capital raising, restructuring, and advisory services.

2. Morgan Stanley

Morgan Stanley delivers strategic financial advisory and private equity services through its merchant banking division.

3. Goldman Sachs

Goldman Sachs is a leading global investment banking firm offering a range of merchant banking and asset management services.

4. Barclays

Barclays offers corporate and investment banking services with specialized merchant banking support for global clients.

5. Citigroup

Citigroup provides advisory, capital market access, and private placements through its merchant banking segment.

6. HSBC

HSBC supports corporate clients with financial restructuring, M&A advisory, and equity financing solutions.

7. Deutsche Bank

Deutsche Bank offers investment and merchant banking services, focusing on corporate finance and cross-border transactions.

8. UBS Group AG

UBS provides merchant banking services with expertise in equity investments, strategic advisory, and structured finance.

9. BNP Paribas

BNP Paribas offers merchant banking solutions focusing on sustainable finance, project advisory, and risk management.

10. Rothschild & Co

Rothschild & Co delivers independent financial advisory and merchant banking services with global transaction expertise.

How big is the Merchant Banking Market : FAQs