The merchant banking services market size is projected to expand from USD 112.47 billion in 2025 and USD 119.68 billion in 2026 to USD 157.59 billion by 2031, registering a CAGR of 5.66% between 2026 and 2031. This report is segmented by Service Type (Mergers, Acquisitions, and Takeover Advisory, and More), Market Venue (Public / Registered Markets and More), End User (Non-Financial Corporations and More), Client Size (Mid-Market and More), Industry Vertical (Technology, Media, and Telecom and More), and Geography. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.
Other drivers and restraints analyzed in the detailed report include:
M&A and takeover advisory is projected to grow at a 7.14% CAGR from 2026 to 2031. Global M&A volume rose 48% year over year in H1 2026, while mega-deal volume rose 125%. The deal cycle is supporting advisory assignments that require valuation, negotiation, and regulatory expertise. Restructuring and recapitalization advisory also has a durable base because corporate debt is coming due across credit tiers. The OECD refinancing data supports continued need for liability management and recapitalization mandates
Public and registered markets accounted for 57.45% of the merchant banking services market in 2025. Exchange-listed securities provide established issuance infrastructure, broad institutional participation, and large fee pools from equity and bond transactions. Public markets remain important for listed equity issuance, registered debt, and broad investor distribution. Their scale continues to anchor capital markets activity for established issuers. The Merchant Banking Services Market industry serves these venues through underwriting, distribution, and disclosure-related advisory services.
Private and unregistered markets are forecast to grow at a 6.93% CAGR from 2026 to 2031. Global private equity held more than 32,000 portfolio companies in Q2 2026, and 34% had been held for more than 5 years. These holdings increase demand for GP-led secondaries, continuation vehicles, tender offers, and hybrid capital solutions. Lazard agreed in April 2026 to acquire Campbell Lutyens to create a larger private capital advisory platform. Evergreen and semi-liquid funds are also reducing the practical divide between public and private channels.
EMEA generated USD 1 trillion in M&A volume in H1 2026, its strongest first half since 2007. The United Kingdom represented 33% of regional activity, while Germany, France, and Italy recorded M&A volume growth of more than 100%, 51%, and 200%, respectively. The OECD found that 65% of investment-grade corporate debt due in 2026 to 2028 carries coupons of 4% or below, supporting refinancing activity. Inbound North American flows to EMEA were USD 199 billion in H1 2026, while reciprocal flows totaled USD 132 billion. The Foreign Subsidies Regulation and revised antitrust thresholds can lengthen execution, but they also increase demand for regulatory advice.
Asia-Pacific contributed USD 630 billion in M&A volume in H1 2026, and China represented 30% of the regional total. China recorded 7,316 M&A transactions in H1 2026, up nearly 30% year over year, with a value of USD 241.6 billion, up 56%. The Middle East and Africa are forecast to grow at an 8.12% CAGR from 2026 to 2031. MENA investment banking fees reached USD 2.1 billion in 2025, while M&A volume involving the region reached USD 193.1 billion and bond issuance reached USD 171.1 billion. Brookfield completed a USD 2 billion first close for its PIF-anchored Middle East fund in July 2026, with at least 50% committed to Saudi Arabia.
Global Merchant Banking Services Market Trends and Insights
Increasing Cross-Border M&A and Corporate Transaction Activity
Cross-border M&A reached USD 820 billion in H1 2026, a 63% year-over-year increase and the highest level in 2 decades. The 2025 full-year cross-border value was USD 1.24 trillion, representing a 46% increase. Technology, energy, and financial institutions are pursuing overseas assets to secure AI capabilities, supply chains, and infrastructure. These transactions require advisors to address foreign investment reviews, sanctions rules, and data protection requirements at the same time. The EU Foreign Subsidies Regulation has made regulatory navigation a more direct part of advisory work. The Merchant Banking Services Market benefits because cross-border mandates require more extensive structuring and execution support than domestic transactions.Growing Demand for Private Capital Raising and Alternative Financing Solutions
Private credit is becoming a structural alternative to broadly syndicated loans, expanding work in private origination, GP capital solutions, and secondary advisory. Annual flows into semi-liquid private credit funds rose from USD 10 billion in 2020 to USD 100 billion in 2025. Gross issuance across corporate debt and loan markets reached USD 1.8 trillion in H1 2026, supported in part by AI-related capital expenditure. Asset managers that offer tailored private credit now compete with bank syndication desks for financing roles. This can reduce the traditional intermediary role of banks, but it adds demand for liability management, capital structuring, and financing advice. The Merchant Banking Services Market is gaining from this shift because clients need help selecting and structuring financing across public and private channels.High Advisory and Transaction Costs, Particularly for Smaller Enterprises
Merchant banking fee structures remain designed around larger mandates, creating an access barrier for smaller and mid-market businesses. Sell-side success fees for transactions with enterprise values of USD 10 million to USD 100 million typically range from 4% to 8% of deal value. These costs can materially affect founder-owned companies with limited balance-sheet flexibility. Large mandates have scale efficiencies that smaller transactions do not offer, which helps preserve a split between large-cap and middle-market service coverage. The issue is more acute in emerging markets, where smaller issuers may need to use international banks with high minimum fees. This leaves an opening for digital and specialized advisory models, but it limits immediate access to merchant banking services for many businesses.Other drivers and restraints analyzed in the detailed report include:
- Increasing Complexity of Corporate Capital Structures and Strategic Transactions
- Digitalization of Deal Execution, Due Diligence, and Financial Analysis
- Prolonged Transaction Timelines and Complex Regulatory Approval Requirements
Segment Analysis
Debt capital markets held 32.82% of the merchant banking services market in 2025, making it the largest service segment. Gross issuance across corporate debt and loan markets reached USD 1.8 trillion in H1 2026. AI infrastructure financing supported issuance, and AI-related borrowers accounted for 40% of net new high-yield issuance in 2026. Equity Capital Markets also benefited from private equity-backed IPO exits, which reached USD 141.4 billion in 2025. Syndication and acquisition-finance arrangement remains linked to sponsor-led buyouts and leveraged transactions.M&A and takeover advisory is projected to grow at a 7.14% CAGR from 2026 to 2031. Global M&A volume rose 48% year over year in H1 2026, while mega-deal volume rose 125%. The deal cycle is supporting advisory assignments that require valuation, negotiation, and regulatory expertise. Restructuring and recapitalization advisory also has a durable base because corporate debt is coming due across credit tiers. The OECD refinancing data supports continued need for liability management and recapitalization mandates
Public and registered markets accounted for 57.45% of the merchant banking services market in 2025. Exchange-listed securities provide established issuance infrastructure, broad institutional participation, and large fee pools from equity and bond transactions. Public markets remain important for listed equity issuance, registered debt, and broad investor distribution. Their scale continues to anchor capital markets activity for established issuers. The Merchant Banking Services Market industry serves these venues through underwriting, distribution, and disclosure-related advisory services.
Private and unregistered markets are forecast to grow at a 6.93% CAGR from 2026 to 2031. Global private equity held more than 32,000 portfolio companies in Q2 2026, and 34% had been held for more than 5 years. These holdings increase demand for GP-led secondaries, continuation vehicles, tender offers, and hybrid capital solutions. Lazard agreed in April 2026 to acquire Campbell Lutyens to create a larger private capital advisory platform. Evergreen and semi-liquid funds are also reducing the practical divide between public and private channels.
Complete Report Scope:
- By Service Type
- Mergers, Acquisitions and Takeover Advisory
- Equity Capital Markets
- Debt Capital markets
- Syndication and Acquisition-Finance Arrangement
- Restructuring and Recapitalization Advisory
- By Market Venue
- Public / Registered Markets
- Private / Unregistered Markets
- By End User
- Non-Financial Corporates
- Financial Institutions
- Financial Sponsors
- Sovereigns, Agencies, SOEs and Public-Sector Issuers.
- By Client Size
- Large-cap / Large Enterprise
- Mid-Market
- Lower Mid-Market and Emerging Growth
- By Industry Vertical
- Technology, Media and Telecom
- Healthcare and Life Sciences
- Energy, Resources and Utilities
- Industrials and Chemicals
- Consumer and Retail
- Financial Services
- Real Estate and Real Assets
- Public Sector and Infrastructure
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Rest of South America
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Vietnam
- Rest of Asia-Pacific
- Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- Turkey
- South Africa
- Egypt
- Rest of Middle East and Africa
- North America
Geography Analysis
North America held 51.23% of the merchant banking services market in 2025. United States megadeals represented 64% of total United States deal value in 2026, compared with 54% in 2025. The Americas contributed USD 2.1 trillion of the USD 3.2 trillion in global M&A volume in H1 2026 and included 37 mega-deals. United States corporate bond issuance reached USD 1.68 trillion through July 2026, rising 26.9% year over year. Canada contributes mid-market work in natural resources and financial services, while Mexico benefits from nearshoring-related cross-border transactions.EMEA generated USD 1 trillion in M&A volume in H1 2026, its strongest first half since 2007. The United Kingdom represented 33% of regional activity, while Germany, France, and Italy recorded M&A volume growth of more than 100%, 51%, and 200%, respectively. The OECD found that 65% of investment-grade corporate debt due in 2026 to 2028 carries coupons of 4% or below, supporting refinancing activity. Inbound North American flows to EMEA were USD 199 billion in H1 2026, while reciprocal flows totaled USD 132 billion. The Foreign Subsidies Regulation and revised antitrust thresholds can lengthen execution, but they also increase demand for regulatory advice.
Asia-Pacific contributed USD 630 billion in M&A volume in H1 2026, and China represented 30% of the regional total. China recorded 7,316 M&A transactions in H1 2026, up nearly 30% year over year, with a value of USD 241.6 billion, up 56%. The Middle East and Africa are forecast to grow at an 8.12% CAGR from 2026 to 2031. MENA investment banking fees reached USD 2.1 billion in 2025, while M&A volume involving the region reached USD 193.1 billion and bond issuance reached USD 171.1 billion. Brookfield completed a USD 2 billion first close for its PIF-anchored Middle East fund in July 2026, with at least 50% committed to Saudi Arabia.
List of Companies Covered in this Report:
- JPMorgan Chase & Co.
- The Goldman Sachs Group, Inc.
- Morgan Stanley
- Bank of America Corporation
- Citigroup Inc.
- Barclays plc
- Deutsche Bank AG
- UBS Group AG
- BNP Paribas SA
- Wells Fargo & Company
- Jefferies Financial Group Inc.
- Royal Bank of Canada
- Mizuho Financial Group, Inc.
- Nomura Holdings, Inc.
- HSBC Holdings plc
- Lazard, Inc.
- Evercore Inc.
- Rothschild & Co
- Moelis & Company
- Centerview Partners LLC
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
1 INTRODUCTION
4 MARKET LANDSCAPE
5 MARKET SIZE AND GROWTH FORECASTS
6 COMPETITIVE LANDSCAPE
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- JPMorgan Chase & Co.
- The Goldman Sachs Group, Inc.
- Morgan Stanley
- Bank of America Corporation
- Citigroup Inc.
- Barclays plc
- Deutsche Bank AG
- UBS Group AG
- BNP Paribas SA
- Wells Fargo & Company
- Jefferies Financial Group Inc.
- Royal Bank of Canada
- Mizuho Financial Group, Inc.
- Nomura Holdings, Inc.
- HSBC Holdings plc
- Lazard, Inc.
- Evercore Inc.
- Rothschild & Co
- Moelis & Company
- Centerview Partners LLC
