List of Major Investment Banks in Canada
- RBC Capital Markets
- BMO Capital Markets
- TD Securities
- CIBC Capital Markets
- Scotiabank Global Banking & Markets
- National Bank Financial
The Big 5 have historically dominated Canadian investment banking and capital markets advisory. They are also large commercial lenders and provide a full suite of banking services to clients (ECM, DCM, trading products). All have expanded investment banking services in the US because of stronger revenue growth as well as to provide leveraged finance and cross-border solutions for Canadian clients.
National Bank has historically been number 6 but has grown aggressively with a goal to become a top 3 bank in Canada. CIBC and NBF have historically also banked more mid-market clients in addition to the major Canadian names. Each Big 5 will also have a dedicated mid-market practice (more small cap and for private firms) that will compete against Deloitte, Ernst & Young, PwC and KPMG’s advisory practices.
International Bulge Bracket
- Goldman Sachs
- Morgan Stanley
- JP Morgan
- Bank of America Securities
- No more Merrill Lynch
- Great firm
- Credit Suisse
- Barclays Capital
- Wells Fargo
The bulge bracket focuses on large cross border M&A and US debt capital markets solutions for US-denominated notes. Owing to the size of the transactions, they will only do one or two large transactions a year but top the league tables for mergers & acquisitions. Keep in mind that in a global context, large capitalization Canadian corporates are middle market and middle market corporates are considered small cap.
- Lazard purchased a boutique called Verus Partners to enter the Canadian market
- Tudor Pickering & Holt
- Energy only investment bank now owned by Perella Weinberg Partners
Small and bespoke footprint – many will also operate from their US offices. Elite boutiques tend to have a niche presence in Canada, focusing on key relationships, financial restructuring advisory, project finance, government and cross-border work.
Although most are now publicly traded, the elite boutiques still allocate the largest amount of revenue to compensation.
List of Mid-Market Investment Banks in Canada
- Canaccord Genuity
- Global presence
- GMP Securities
- Operates in Calgary as GMP FirstEnergy, an energy only boutique
- Purchased Stifel, a prominent mid-market investment bank in the US
- Global presence
- Laurentian Bank Securities
- Desjardins Capital
- Fixed income, strong representation
- Industrial Alliance
- Peters & Co
- Energy only
- Brookfield Financial
- Owned by Brookfield Asset Management and will do internal deals
- Maxit Capital
- Eight Capital
- Formerly Dundee
- Large commercial banking practice and bulge bracket DCM capabilities
- Previously did infrastructure but now that practice is mostly out of New York
- Canadian arm focuses on natural resources
- Agentis Capital
- Infrastructure only
- Raymond James
- Altacorp Capital
- Cormark Securities
- Blair Franklin
- Haywood Securities
Canadian mid-markets, interchangeably boutiques, used to be just as lucrative if not more lucrative as the Big 5 investment banks. Bonuses are paid semiannually or quarterly instead of annually and follow a boom bust cycle.
Clientele is heavily concentrated in the natural resources space (energy and mining), but recently that has dried up and boutiques have been tracking cannabis and cryptocurrency/blockchain closely.
Most boutiques will provide equity research, equity capital markets and equity sales and trading but the model is suffering and is undergoing consolidation.
Agentis and Peters are very well respected in their industry.
List of Boutique Investment Banks in Canada
- Evans & Evans
- Baron Capital Markets
- Firepower Capital
- Echelon Wealth Partners
- Beacon Securities
- Gravitas Securities
Many of these firms do private deals for microcap companies with similar work to Big 4 corporate finance.