Bulge Bracket Firms in Investment Banking

What comes to mind when you hear of companies like JPMorgan, Goldman Sachs, Bank of America, and Morgan Stanley? Did billion dollar deals, intense competition, big pay-checks, and prestigious exit opportunities pop up? If so, then you already have some insights into the top-tier bulge bracket firms in investment banking.

These firms plus the four others in the bulge bracket banks category are the big players in the investment banking industry. This guide will help you understand more about these firms, including a brief profile of each, how to select the right one for your career start and tips for the interview preparation.

What Are Bulge Bracket Firms?

Bulge bracket firms are the largest and most prestigious global investment banks. They work on massive financial transactions, often worth billions of dollars, and have offices in major cities like New York, London, and Hong Kong.

The term "bulge bracket" comes from a time when banks advertised their services on tombstones. Not the grave ones though! These were just print ads for new securities. The biggest banks would appear in larger fonts, creating a “bulge” effect. That’s how the name stuck around.

The bulge bracket investment banking firms help companies merge or acquire other businesses, provide financing for those deals, and assist in public offerings when a company wants to sell its shares to the public for the first time.

Why Are They Categorized as Bulge Bracket Firms?

The investment banking firms in the bulge bracket list share some characteristics. These include a large global presence, ability to handle the biggest financial transactions, a variety of IB services, and multi-billion dollar market capitalizations.

Deal Size and Balance Sheet

When you see a multi-billion transaction, a bulge bracket bank will likely be behind it. They have enough capital resources or large balance sheets to underwrite large securities offerings and provide financing directly to clients. That's why they get high-profile mergers and acquisitions (M&A) deals and large capital market activities that smaller firms may not be able to support.

Their clients are fortune 500 companies, institutional investors, and governments. As you'd expect, the high value clients and strong influence in the market shows in their deal volume and returns. They consistently dominate in terms of M&A advisory fees and total investment banking revenue annually.

Global Presence

Another reason why a firm features in the bulge bracket list is having a global presence. These firms have offices in all major financial markets, including the Americas, Europe, and Asia-Pacific with thousands of employees. Having a strong global presence allows bulge bracket investment banking firms to execute deals across multiple geographies and access a diverse client base.

That's different from other banks and regional investment banking firms like Houlihan Lokey, William Blair, and RBC Capital Markets. Such banks focus on specific geographic markets. They may have international offices, but have more limited international deal-making capabilities compared to the global reach of bulge bracket firms.

Comprehensive Service Offerings

Bulge bracket firms are also known for their all-round investment banking services, including:

• Mergers and acquisitions (M&A) advisory
• Debt and equity issuance
• Sales and trading
• Wealth management
• Restructuring
• Equity research

The comprehensive service offerings is part of the reason why some large banks like HSBC don't make the bulge bracket cut. HSBC focuses more on retail and commercial banking rather than the full investment banking services. Other big banks like Wells Fargo and RBC also don't make it here because while they may excel in certain IB areas, they don't offer the extensive global investment banking services that define bulge bracket firms.

Reputation and Prestige

Each of the bulge bracket firms has a long-standing history and track record of successful transactions. This contributes to their prestigious status and ability to attract top talent and high-profile clients.

Their analyst programs are highly competitive with thousands of applications for each spot from top universities worldwide. They also offer strong exit opportunities to private equity and hedge funds. Such factors support their prestigious status.

Which Are the Bulge Bracket Investment Banks?

As of 2024, there are eight bulge bracket investment banks: JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup, Barclays, UBS, and Deutsche Bank.

You shouldn't really expect much changes in the list year after year as these firms are able to maintain their positions. It's also difficult for banks in other categories like elite boutique and middle market investment banking firms to meet the criteria for joining this list. Some of the changes we've seen in the bulge bracket list have happened due to the financial crisis and mergers and acquisitions. For instance:

• JPMorgan Chase acquired Bear Stearns while Bank of America acquired Merrill Lynch during the 2008 financial crisis
• Lehman Brothers collapsed following the 2008 crisis
• UBS acquired Credit Suisse in 2023
  

JPMorgan Chase

JPMorgan Chase & Co. comes up as the world's leading bank in terms of investment banking fees and revenue. It leads the "Big Four" U.S. banks, which include Bank of America, Wells Fargo, and Citigroup, in all major financial metrics like market capitalization and total assets.

As for the global presence, JPMorgan is present in more than 100 countries and tops in investment banking revenue in various regions.

👉 Read the JPMorgan Chase Interview Guide to learn more about this company!

Goldman Sachs

In most years, Goldman Sachs follows JPMorgan in second place in terms of investment banking revenue. While it's small in market cap compared to JPMorgan, Goldman Sachs is well known for its track record in M&A services.

Some of Goldman Sachs high-profile transactions that show its expertise in handling complex deals include:

• RSA Insurance and G4S take-private transactions
• $16.4 billion acquisition of Tiffany & Co. by LVMH
• AerCap’s acquisition of GE Capital Aviation Services for $31.2 billion
• $59 billion Chevron acquisition of Hess

👉 Ace your interview at Goldman Sachs with this guide!

Morgan Stanley

If you'd like to focus on wealth management, Morgan Stanley would be a perfect fit. The bulge bracket investment banking firm generates more than half of its revenue from its wealth and asset management businesses. This department or section of Morgan Stanley manages more than $2 trillion in client assets and employs about 16,000 financial advisors. So, it's one of the largest wealth management firms in the industry.

👉 Read our Morgan Stanley Interview Guide and start your career in investment banking!

Bank of America

With offices in over 30 countries, Bank of America has a good presence outside of the United States. It focuses on M&A advisory, capital markets, and corporate finance.

You can expect to work in different industries that the Bank of America’s investment banking sector covers. These include technology, healthcare, energy, consumer & retail, financial institutions, industrials, real estate, and media & telecommunications.

👉 Find out more about the interview-process at the Bank of America

Citigroup

We can call Citigroup the investment bank for emerging markets even though it's still impactful in other regions. That's because Citi has been winning the Euromoney’s award for World’s Best Investment Bank in Emerging Markets for several years, including 2023 and 2024.

These regions are Central and Eastern Europe, Asia, and Africa. So, Citi is a good one for firms trying to expand in such areas and professionals seeking to explore the regions as well.

👉 Read the Citigroup Interview Guide and find out more!

Barclays

Barclays combines investment banking with retail banking, corporate banking, and wealth management. If you're considering the firm, you might work on some high-profile M&A transactions across various sectors, including technology, healthcare, and energy.

Some of the deals Barclays has worked on include:

• $6.4 billion IBM's Acquisition of HashiCorp
• $1.9 billion Alaska Airlines and Hawaiian Airlines Merger
• $14.9 billion Nippon Steel's Acquisition of U.S. Steel
• $2.5 billion Blackstone's Acquisition of Civica
  

UBS

UBS used to stand for Union Bank of Switzerland, but it's no longer an acronym. Instead, UBS is now an independent brand in the financial services industry.

Like Morgan Stanley, UBS is well known for its wealth management services tailored primarily to high-net-worth and ultra-high-net-worth individuals including some of the world's billionaires. So, UBS has made a name for itself as the largest manager of private wealth all over the world.

After completing the acquisition of Credit Suisse in 2024, UBS solidified its position in the bulge bracket investment banking firms category.

Deutsche Bank

Some analysts and bankers tend to categorize Deutsche Bank as "borderline” while it has historically been classified as a bulge bracket bank due to its size and global presence. Their reasons include the decline in deal size and revenue. For instance, in some years like 2024, some elite boutique firms like Jefferies and Wells Fargo made slightly higher IB revenues than Deutsche Bank.

Deutsche Bank also tends to work on smaller deals than the top-tier bulge bracket investment banking firms like JPMorgan and Goldman Sachs. However, the bank has a strong presence in Europe and offices in over 58 countries. It has also established strong bases in emerging markets, particularly in Asia-Pacific and Latin America. So, it might be positioned well for growth in these fast-developing economies.

How Can You Pick the Right Firm to Work For?

All the bulge bracket firms can be good places to start your investment banking career due to their prestige, deal exposure, and competitive pay packages. But one firm might be better for you than another depending on your long term career goals, sector focus, work culture, and exit opportunities.

Consider the following factors to pick the right firm to work for:

• Industry Focus: Some investment banks specialize in certain industries or types of deals like technology and healthcare. So, you can learn the sectors the firms you're eyeing get more deals on for a more fulfilling career.
• Global Reach: While bulge bracket investment banking firms have a global presence, their influence often varies by region. Consider a firm with the international exposure you want.
• Employee Satisfaction: To understand each firm’s work culture, read employee reviews and satisfaction ratings on platforms like Glassdoor or Indeed. You can also connect with former or current employees for insider insights. Networking is also a good way to learn more about the corporate culture of a firm.
• Long-Term Career Goals: Where do you see yourself in five or ten years? Being strategic with the bulge bracket firms can help you get the training and networking opportunities that can be advantageous for career advancement. Top tier banks definitely have better chances.
• Exit Opportunities: Look at where analysts from each bulge bracket investment banking firm move after their junior years. These include roles in private equity or hedge funds, and can determine the group you apply to in each bank.
  

What’s Important When Starting a Career in a Bulge Bracket Firm?

Did you know that acceptance rates across top bulge bracket firms range from 0.8% to 5%? That's pretty hard. So, to get into a bulge bracket investment bank, you'll need to prepare adequately for the interviews. This includes knowing the firm inside out, practicing behavioral questions, and doing mock interviews.

Here are more details on how to prepare to get into a bulge bracket investment bank.

Know the Firm and Role Inside Out

You shouldn't go for the interview at a bulge bracket firm without researching its history, culture, recent deals, and market position. Also, understand what differentiates it from other bulge bracket firms.

Make sure you also understand the specific position you are applying for, like analyst, associate, and its responsibilities. The preparation will help you tailor your answers to show how your skills and experiences align with these duties.

Technical Preparation

For technical preparation, try to master fundamental financial concepts such as valuation methods (DCF, comparables), financial modeling, and accounting principles.

It's also a good idea to stay updated on current market trends and major financial news. The interviewer might ask you to discuss recent deals that are relevant to the firm or industry during your interview.

Behavioral Questions

This is a big one in the investment banking industry. Prepare for common behavioral questions such as "Tell me about yourself," "Why investment banking?" and "Describe a challenging situation you faced".

We suggest learning and using the STAR method (Situation, Task, Action, Result) to structure your responses in a way that leaves a lasting impression on the interviewer.

For the cultural fit questions, your research about the firm will help you tailor your answers to the firm’s culture and values. Be ready to articulate why you want to work there specifically, demonstrating that you align with their values.

Mock Interviews

To be among the few candidates that land investment banking jobs and internships in bulge bracket firms, practice using mock interviews. Do this with peers or mentors who have experience in investment banking. It will help you refine your answers and improve your confidence in delivering them.

But if you want to increase your chances of success even more, work with an experienced investment banking interview coach. They will give you more helpful feedback to identify areas for improvement than peers.

👉 Find the right coach to help you ace your interview!

Key Takeaways

• Bulge bracket investment banking firms are the top players in the industry working with the majority of Fortune 500 companies, sovereign wealth funds and the largest institutional investors. They have a significant global reach, billion-dollar deals, high market capitalizations, and diversified services.
• The bulge bracket investment banking firms are JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup, Barclays, UBS, and Deutsche Bank.
• Getting into a bulge bracket investment banking firm is very hard because they get thousands of applications for a few roles. You can increase your chances of getting hired by preparing for behavioral interviews, researching the firm, and practicing mock interviews with expert coaches.