Merchant Banking Services

Global Merchant Banking Services Market to Reach US$142.3 Billion by 2030

The global market for Merchant Banking Services estimated at US$55.4 Billion in the year 2024, is expected to reach US$142.3 Billion by 2030, growing at a CAGR of 17.0% over the analysis period 2024-2030. Portfolio Management, one of the segments analyzed in the report, is expected to record a 19.1% CAGR and reach US$79.6 Billion by the end of the analysis period. Growth in the Business Restructuring segment is estimated at 13.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$15.1 Billion While China is Forecast to Grow at 22.8% CAGR

The Merchant Banking Services market in the U.S. is estimated at US$15.1 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$31.9 Billion by the year 2030 trailing a CAGR of 22.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 12.4% and 15.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.6% CAGR.

Global Merchant Banking Services Market – Key Trends & Drivers Summarized

What Are Merchant Banking Services and Why Do They Matter?
Merchant banking services encompass a wide range of financial services provided to businesses, particularly in areas related to capital raising, investment advisory, and corporate restructuring. Unlike traditional commercial banking services, merchant banks focus primarily on serving corporate clients, high-net-worth individuals, and institutional investors. Their services include underwriting, facilitating mergers and acquisitions (M&A), providing debt and equity financing, managing assets, and advising on strategic investments. Merchant banks often deal with larger and more complex transactions, and their services are critical in helping businesses scale, restructure, or optimize their capital structures.

Merchant banks play a significant role in the financial markets by bridging the gap between corporations seeking capital and investors looking to deploy capital. They offer specialized expertise in areas like IPOs (Initial Public Offerings), private placements, and syndicated loans, which are often beyond the scope of traditional banks. Merchant banking services also involve a high degree of customization, as banks tailor their solutions to meet the specific needs of their clients. Given the increasing complexity of the global financial system and the growing need for businesses to secure capital for expansion, merchant banking services are becoming more critical for corporate growth and market competitiveness.

What Are the Key Trends Driving the Merchant Banking Services Market?
One of the key trends in the merchant banking services market is the increasing focus on cross-border transactions. As businesses expand their reach globally, the need for international financing solutions and advisory services grows. Merchant banks are increasingly involved in facilitating mergers and acquisitions across borders, helping businesses navigate the complexities of international financial regulations, currency fluctuations, and geopolitical risks. They provide invaluable expertise in structuring deals that meet the regulatory requirements of different countries while optimizing financial outcomes for both the acquiring and target companies. This trend of globalization in finance has been particularly pronounced in emerging markets, where companies are looking to expand into developed markets and vice versa.

Another important trend is the growing shift towards alternative investment strategies and asset classes, such as private equity, venture capital, and real estate. As traditional investment vehicles like stocks and bonds yield lower returns, both institutional and high-net-worth investors are increasingly seeking alternative investments to diversify their portfolios and maximize returns. Merchant banks are key facilitators of these alternative investments, providing advisory services, capital raising, and structuring investments in private companies, startups, and non-publicly traded assets. Additionally, the growth of venture capital and private equity funding has accelerated due to technological innovations and the expansion of the startup ecosystem, further fueling the demand for merchant banking services in this domain.

Why Is the Demand for Merchant Banking Services Growing?
The demand for merchant banking services has seen significant growth due to several factors, including the increasing complexity of corporate financing needs and the global expansion of businesses. As companies look to optimize their capital structures, manage risks, and expand into new markets, they require sophisticated financial strategies that go beyond the traditional offerings of commercial banks. Merchant banks provide the expertise needed to navigate these complex financial landscapes, offering customized solutions such as equity offerings, structured finance, and specialized debt instruments.

Additionally, the rise of private equity and venture capital investments has driven a greater need for advisory services and capital raising expertise. Private equity firms and venture capitalists require merchant banks to assist in funding new ventures, managing portfolios, and facilitating exits through M&As or IPOs. In the wake of economic disruptions, such as those caused by the COVID-19 pandemic, many companies are turning to merchant banks to help them restructure their finances, raise capital, or execute strategic acquisitions. The increased demand for mergers and acquisitions, particularly in sectors like technology, healthcare, and renewable energy, is further bolstering the merchant banking sector.

What Are the Key Growth Drivers in the Merchant Banking Services Market?
The growth in the merchant banking services market is driven by several factors, notably the increasing demand for complex financing solutions across various industries. As businesses face rising capital needs for expansion, technological investments, and global market penetration, merchant banks are well-positioned to provide the customized financial solutions required to meet these needs. The rise in corporate mergers, acquisitions, and joint ventures, driven by businesses` efforts to scale and consolidate in a competitive global market, is a significant factor behind the increased demand for merchant banking services. Merchant banks facilitate these transactions by providing strategic advice, conducting due diligence, and structuring deals that align with the long-term goals of their clients.

Furthermore, the growing importance of private equity and venture capital is a major driver of the merchant banking market. As more investors seek high-growth opportunities in startups and private companies, merchant banks are increasingly relied upon to raise capital, structure investment deals, and guide the entire investment process. This trend is particularly evident in the technology and biotech sectors, where innovation is rapid and businesses are often in need of substantial capital injections to fuel growth. Additionally, the demand for restructuring services, particularly in the wake of the COVID-19 pandemic, has further strengthened the role of merchant banks in advising distressed companies, facilitating debt restructuring, and guiding them through financial turnaround processes.

The expansion of emerging markets and the increased flow of cross-border investments are also pivotal in driving market growth. As businesses from developing regions look to enter global markets, merchant banks are instrumental in helping them navigate complex international regulatory environments and raise the necessary capital to compete on a global scale. Moreover, regulatory changes, such as more favorable tax treatments for certain investment vehicles, are contributing to the growth of private equity and venture capital, further accelerating the need for merchant banking services. As global markets become more interconnected, merchant banks continue to play a central role in facilitating capital flows, ensuring that businesses have access to the financing they need to thrive in an increasingly competitive global economy.

SCOPE OF STUDY:

The report analyzes the Merchant Banking Services market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Services (Portfolio Management, Business Restructuring, Credit Syndication, Others); Services Provider (Banks, Non-Banking Institutions); End-User (Businesses, Individuals)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 39 Featured) -

• Bank of America Corporation
• Barclays plc
• BNP Paribas SA
• Citigroup Inc.
• Credit Suisse Group AG
• DBS Bank Ltd.
• Deutsche Bank AG
• Goldman Sachs Group Inc.
• HSBC Holdings plc
• JPMorgan Chase & Co.
• Mizuho Financial Group
• Morgan Stanley
• Nomura Holdings, Inc.
• Rothschild & Co
• Royal Bank of Canada
• Societe Generale Group
• Standard Chartered plc
• Sumitomo Mitsui Financial Group
• UBS Group AG
• Wells Fargo & Co.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.