What Is a Capital Markets Group?

A capital markets group is a division within a larger company that uses its expertise in financial markets to provide financial services to specific types of clients. Capital markets groups can help companies meet a wide variety of financial goals such as the origination and execution of equity offering and the issuing of issuing debt.

A capital markets group may provide investment management services, lending services, equity sales and trading, research, consulting services, or any number of other types of financial services.

Key Takeaways

  • Capital markets groups are units of a company or investment firm that handle financial and banking services for a set of clients or customers.
  • These corporate divisions may exist within larger financial institutions to help with specific services such as obtaining leases, acquiring other companies, or issuing debt.
  • Capital markets groups are also responsible for investment banking services and the issuance of a company's securities.

Understanding Capital Markets Groups

The types of services that may be provided by a capital markets group vary widely and depend on the focus of the company as a whole and on its customers' needs. Examples include helping a healthcare company to lease or finance expensive equipment, helping a young company find investors, helping an existing company expand its operations (or even providing financing for a company's customers), and other operational tasks such as corporate restructuring.

In order to help companies that face increasingly complex sets of challenges and opportunities, capital markets groups effectively provide assistance to help them operate their business and stay competitive amid changing or uncertain conditions.

The resulting alliance provides an enhanced ability for a company to navigate the sophisticated economic and business landscape, providing analysis, advice, and high-quality execution that helps propel a company's growth. Capital markets teams focus on building on these types of strategic relationships in order to build a deep understanding of clients' needs that will enable them to deliver advice and solutions that will make a significant difference.

Capital Markets Groups' Services and Areas of Expertise

Investment Banking Services

From syndicated loans to import solutions and integrated receivables, capital markets groups offer universal, strategic advice and solutions that make a significant difference in their clients' futures.

Mergers and Acquisitions

Capital markets groups help clients with their most critical and complex business issues, such as mergers and acquisitions. Typically, this sort of expertise comes from seasoned, senior bankers that are able to leverage their long-established industry relationships and specialized insights to help ensure that every merger or acquisition transaction is executed flawlessly.

Debt Capital Markets

Capital markets groups help companies raise capital and assemble financing through a broad range of sophisticated solutions. Usually spearheaded by senior-level bankers with long-standing industry, these groups help companies structure and execute financing solutions.

Equity Capital Markets

Capital markets groups help companies develop the origination and execution of equity offerings, such as IPOs, follow-ons, and convertible notes. Capital markets groups provide potential issuers with advice and education on transaction size, timing, structure, execution alternatives, and selection of underwriters.