What Is a Capital Markets Group?
A capital markets group is a division within a larger company that uses its expertise in financial markets to provide financial services to specific types of clients. Capital markets groups can help companies meet a wide variety of financial goals such as the origination and execution of equity offering and the issuing of issuing debt.
A capital markets group may provide investment management services, lending services, equity sales and trading, research, consulting services, or any number of other types of financial services.
Key Takeaways
- Capital markets groups are units of a company or investment firm that handle financial and banking services for a set of clients or customers.
- These corporate divisions may exist within larger financial institutions to help with specific services such as obtaining leases, acquiring other companies, or issuing debt.
- Capital markets groups are also responsible for investment banking services and the issuance of a company's securities.
Understanding Capital Markets Groups
The types of services that may be provided by a capital markets group vary widely and depend on the focus of the company as a whole and on its customers' needs. Examples include helping a healthcare company to lease or finance expensive equipment, helping a young company find investors, helping an existing company expand its operations (or even providing financing for a company's customers), and other operational tasks such as corporate restructuring.
In order to help companies that faceincreasingly complex sets of challenges and opportunities, capital markets groupseffectivelyprovide assistanceto help themoperate theirbusiness and stay competitive amid changing oruncertain conditions.
The resulting alliance provides an enhanced ability for a company tonavigate the sophisticated economic and business landscape, providinganalysis, advice,and high-quality execution that helps propel a company'sgrowth.Capital markets teams focus on buildingon these types of strategic relationships in order to build a deep understanding ofclients' needs that will enable them todeliver advice and solutions that will make a significant difference.
Capital Markets Groups' Services and Areas of Expertise
Investment Banking Services
From syndicated loans to import solutions and integrated receivables, capital markets groupsoffer universal, strategic advice and solutions that make a significant difference in their clients' futures.
Mergers and Acquisitions
Capital markets groups help clients with their most critical and complex business issues, such as mergers and acquisitions. Typically, this sort of expertise comes from seasoned, senior bankers that are able toleverage their long-established industry relationships and specialized insights to help ensure that every merger or acquisitiontransaction is executed flawlessly.
Debt Capital Markets
Capital markets groups help companiesraisecapital and assemblefinancingthrough a broad range of sophisticated solutions. Usually spearheaded by senior-level bankerswithlong-standing industry, these groups help companiesstructure and execute financing solutions.
Equity Capital Markets
Capital markets groupshelpcompanies develop theorigination and execution of equity offerings, such as IPOs, follow-ons, and convertible notes. Capital markets groups provide potential issuers with advice and education on transaction size, timing, structure, execution alternatives, and selection of underwriters.
