The Dealmakers Insight – Investment Banking Survey 2024

Social Bonds : A significant financing opportunity amid the pandemic

Executive Summary

There now seems to be light at the end of the tunnel. Our survey indicates that investment banks and advisory firms trust that the time of uncertainty is almost over. They have a comparatively better outlook towards the deal pipeline while maintaining their focus on improving operational efficiency by leveraging technology and offshoring solutions.

Optimistic outlook – M&A under the lens

M&A is expected to be the #1 contributor to overall revenue, followed by debt capital markets and equity capital markets.

The global economy is expected to overcome most of the uncertainties that weighed heavily in 2023. The deal-making landscape is, therefore, expected to bounce back in 2024.

Although they faced a challenging environment, debt capital markets performed well in 2023, and the momentum is expected to continue. The global volume of convertible bond offerings doubled in 2023 vs 2022. More than USD200bn of convertible debt is set to mature from 2024 to 2026, indicating a need for refinancing.

Deal drivers and headwinds

Reasonable valuations and dry powder available with financial sponsors are seen among the top drivers of deal activity in 2024. Geopolitical uncertainty is viewed as the #1 headwind for the industry this year, followed by valuation mismatch and a higher cost of capital

The ongoing geopolitical headwinds would be offset mainly by the expected decline in interest rates, availability of dry powder, demand for growth capital and cross-border transactions Ranking of factors driving M&A, according to the survey respondents:

Outlook by sectors

Technology, media and telecom to remain the primary sector driving the recovery in revenues, followed by the power, utilities and infrastructure sector. The healthcare and pharmaceuticals sector to remain resilient.

The top drivers of M&A activity in the TMT sector include innovative technologies such as cloud technology, robotics, AI, supply-chain automation and innovation in the sustainability space.

US infrastructure spending is likely to dominate the public finance space; the primary focus of M&A deals would be to reduce carbon footprint, and private equity funds would be deployed to enhance deal flow in the EV sector.

Healthcare and large pharma will be compelled to participate in M&A deals due to the expiry of patents in the near term and close to end of life holding period for numerous healthcare companies in private equity portfolios.

Strategic priorities and focus areas for C-suite executives

While expanding/augmenting products and services for revenue growth, investment banks and advisory firms are keen to continue focusing on idea generation and origination despite these being the most time-consuming tasks.

63% of the respondents highlighted that their firms are likely to face constraints in terms of employee bandwidth in 2024.


2024 presents significant potential for investment banking and advisory firms Our survey results present an optimistic outlook for the investment banking and advisory business. 77% of the respondents expect significant or at least marginal revenue growth in 2024. Deal makers expect a buyer-led market. M&A is expected to be the #1 contributor to overall revenue, followed by debt capital markets, equity capital markets and private capital advisory/ placements.

The TMT sector will likely remain the primary sector driving the recovery in revenue, followed by power, utilities and infrastructure and leisure, retail and consumer. ESG is expected to be a main factor influencing private equity investment and M&A deals. With this expected growth, investment banks and advisory firms would need more bandwidth. Gap in bandwidth to be bridged by technology and offshoring.

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