The global market for Merchant Banking Services was estimated at US$55.4 Billion in 2024 and is projected to reach US$142.3 Billion by 2030, growing at a CAGR of 17.0% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Merchant Banking Services market.
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.
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.
The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
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.
Report Scope
The report analyzes the Merchant Banking Services market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.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.
Key Insights:
- Market Growth: Understand the significant growth trajectory of the Portfolio Management segment, which is expected to reach US$79.6 Billion by 2030 with a CAGR of a 19.1%. The Business Restructuring segment is also set to grow at 13.9% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, estimated at $15.1 Billion in 2024, and China, forecasted to grow at an impressive 22.8% CAGR to reach $31.9 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Merchant Banking Services Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Merchant Banking Services Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Merchant Banking Services Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as Bank of America Corporation, Barclays plc, BNP Paribas SA, Citigroup Inc., Credit Suisse Group AG and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
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 Analysis: Key Insights for 2025
Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.
What’s Included in This Edition:
- Tariff-adjusted market forecasts by region and segment
- Analysis of cost and supply chain implications by sourcing and trade exposure
- Strategic insights into geographic shifts
Buyers receive a free July 2025 update with:
- Finalized tariff impacts and new trade agreement effects
- Updated projections reflecting global sourcing and cost shifts
- Expanded country-specific coverage across the industry
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIV. COMPETITION
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 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.
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 369 |
| Published | April 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 55.4 Billion |
| Forecasted Market Value ( USD | $ 142.3 Billion |
| Compound Annual Growth Rate | 17.0% |
| Regions Covered | Global |
