Merchant Banking Services Market To Reach $143.94 Billion By 2030

Merchant Banking Services Market Growth & Trends

The global merchant banking services market size is anticipated to reach USD 143.94 billion by 2030, expanding at a CAGR of 17.4% from 2023 to 2030, according to a new report by Grand View Research, Inc. The areas covered under merchant bank services include equity underwriting, portfolio management, and credit application processing received from financial institutions. The increasing demand for personal & business banking services, such as portfolio management and payment processing services, is anticipated to fuel the market’s growth over the forecast period.

The merchant banking industry has been gaining traction for specialized functions such as private placements. Private placements refer to the ability to raise capital for a company by selling its shares to a small number of private investors. Private placements differ from initial public offerings, wherein in the latter, anyone interested can purchase the shares of a company from the open market.

Merchant bank services also involve structured trade finance and debt funding. Structured trade finance is a well-adopted alternative to conventional lending, especially in emerging nations, to enable import-export transactions. Debt funding enables public and private companies to raise funds by issuing corporate debentures.

The COVID-19 pandemic had an immediate impact on merchant bank and their services. Small and large-scale investors resorted to flight to the safety of capital temporarily in the uncertain environment induced by the coronavirus. Merchant bank services heavily depend on a risk-on economic climate and can be vulnerable to economic uncertainties and downturns with high redemptions.

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Merchant Banking Services Market Report Highlights

• The business restructuring segment is anticipated to witness significant growth over the forecast period. The growth of the segment can be attributed to the increase in restructuring activity by the companies operating across real estate, retail, and consumer sectors

• The non-banking institution segment is projected to witness the fastest growth over the forecast period. The rising number of non-banking financial companies offering merchant banking services is fueling the growth of the segment

• The businesses segment is expected to witness the fastest growth over the forecast period. Merchant bank services add value to business clients by helping them create a strategic plan to expand operations through inorganic ways of entering new markets, including partnerships and collaborations. Merchant bank services also ensure adherence to legal requirements in domestic and international transactions

• The Asia Pacific is anticipated to emerge as the fastest-growing region. The growth of the region can be attributed to the rising geographic expansion of merchant banking service companies across the region

Merchant Banking Services Market Segmentation

Grand View Research has segmented the global merchant banking services market based on services, service provider, end-user, and region:

Merchant Banking Services Outlook (Revenue, USD Billion, 2017 - 2030)

• Portfolio Management

• Business Restructuring

• Credit Syndication

• Others

Merchant Banking Services Provider Outlook (Revenue, USD Billion, 2017 - 2030)

• Banks

• Non-Banking Institutions

Merchant Banking Services End-user Outlook (Revenue, USD Billion, 2017 - 2030)

• Businesses

• Individuals

Merchant Banking Services Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

  • Italy

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • Singapore

• Latin America

  • Brazil

  • Mexico

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in the Merchant Banking Services Market

• U.S. Capital Advisors LLC

• JPMorgan Chase & Co.

• Bank of America Corporation

• DBS Bank Ltd.

• NIBL Ace Capital Limited

• Bryant Park Capital

• Morgan Stanley

• HSBC Bank USA, N.A.

• Royal Bank of Canada Website

• BERENBERG

• Lazard