In 2025, the role of investment banks in M&A and capital markets is being tested on multiple fronts. After years of rate volatility, geopolitical risk, and shifting capital flows, banks are operating in a more competitive, concentrated market. Large corporates are re-entering the acquisition space with cash-rich balance sheets. Private equity firms are adjusting to higher debt costs, structuring creative financing to get deals over the line. Public equity markets are showing signs of life, but investor discipline remains high.

For the banks, this environment is both challenging and full of opportunity. The top firms are leveraging sector specialization, international networks, and balance sheet strength to secure mandates. Mid-tier banks are finding success in niche sectors, regional dominance, or bespoke advisory models that win middle-market clients.

The difference in 2025 is that the mandate doesn’t go to the bank with the biggest name. It goes to the one with the clearest value proposition for the specific transaction—whether that is cross-border expertise, sector insight, or capital structure creativity.

This article examines how investment banks are positioning for leadership this year, which sectors are commanding attention, and how the strategies behind standout deals are shaping competition.

Investment Banks in 2025: Positioning for M&A and Capital Markets Leadership

The macro backdrop in 2025 is mixed. On one hand, deal volume has begun to recover from the slowdown of 2022–2023, driven by a return of corporate M&A and gradual reopening of IPO markets. On the other, financing conditions are more selective. Debt remains more expensive than the low-rate years, and equity investors are looking for stronger fundamentals before backing listings or follow-ons.

For the global investment banks, positioning is about balancing advisory strength with capital commitment capacity.

Goldman Sachs remains one of the leaders in large-cap M&A, leaning heavily on its relationships with mega-cap corporates and private equity sponsors. Its strength continues to be complex transactions—cross-border deals, contested situations, and carveouts. In capital markets, Goldman has regained momentum in tech IPOs, benefiting from a rebound in AI infrastructure listings.

J.P. Morgan is also strongly positioned, combining balance sheet lending power with advisory coverage. In 2025, the bank has been active not just in traditional M&A but in hybrid transactions where debt financing, equity issuance, and hedging solutions are bundled to close deals. The ability to underwrite financing and execute advisory mandates simultaneously remains a competitive advantage.

Morgan Stanley has been focused on capital markets recovery, particularly in growth sectors. It remains a preferred bookrunner for high-profile IPOs and equity raises in healthcare, software, and consumer brands. Its advisory practice continues to compete effectively in large M&A, but its equity franchise is where it is currently most differentiated.

Outside the bulge bracket, Evercore and Centerview Partners are winning mandates in strategic M&A by positioning as pure-play advisors. Without balance sheet commitments, they pitch independence and deep sector expertise. In 2025, both firms have been involved in large healthcare and consumer transactions where board-level advisory credibility mattered more than financing.

At the mid-market level, banks such as Houlihan Lokey and Raymond James are using sector specialization to secure consistent deal flow. Houlihan’s restructuring expertise continues to generate business in stressed situations, while Raymond James leverages its presence in industrials, consumer, and regional banking to capture deals that global banks may consider too small.

Positioning in 2025 comes down to three themes:

• For large banks: balancing financing capacity and advisory strength to remain in top-tier mandates
• For independent advisors: sector credibility and conflict-free positioning to win high-stakes transactions
• For mid-market firms: specialization, speed, and client intimacy to dominate niche markets

Sector Focus: Where Investment Banks Are Deploying Talent and Balance Sheet in 2025

Sector prioritization in 2025 reflects where capital is flowing and where M&A activity is strongest. Banks are deploying their senior talent into sectors with sustained deal volume and pricing flexibility.

Technology remains a leading sector for M&A, but the type of activity has shifted. In the 2010s, tech banking was dominated by growth capital raises and large-cap strategic acquisitions. In 2025, the focus has moved toward infrastructure plays (semiconductors, AI data centers, cybersecurity) and carveouts of non-core assets from large platforms. Goldman, Morgan Stanley, and Qatalyst Partners have been particularly active in software M&A, with Qatalyst advising on multiple AI-related acquisitions this year.

Healthcare continues to generate advisory and capital markets business. Aging populations, regulatory support for innovation, and capital flowing into biotech and medtech are keeping banks active. J.P. Morgan and Centerview have been visible in large-cap pharma transactions, while Evercore and Lazard have executed mid-market deals in medtech rollups and specialty care carveouts.

Energy transition has emerged as one of the most competitive sectors for investment banks. Banks are advising on renewables M&A, infrastructure financings, and strategic investments in battery technology, grid modernization, and carbon capture. Credit Suisse (now under UBS) and Jefferies have built dedicated coverage teams for clean energy, competing for mandates alongside bulge brackets.

Industrials and infrastructure have seen rising deal activity as governments invest in large-scale projects and corporates restructure to focus on core operations. Banks like Houlihan Lokey and Rothschild are active in middle-market industrial M&A, while global players such as J.P. Morgan and Citi focus on large infrastructure financings.

Consumer and retail remain selective sectors, with activity driven more by portfolio optimization and cross-border brand acquisitions than large leveraged buyouts. Morgan Stanley and Bank of America have executed transactions for global consumer brands repositioning toward premium and direct-to-consumer channels.

Sector focus in 2025 is a signal of where banks expect the most opportunity. It also dictates how resources—coverage teams, senior partners, capital—are deployed. The banks that align their sector strategy with real capital flows are winning more mandates, even in a competitive market.

Standout Deals of 2025: What They Reveal About Investment Bank Strategies

Tracking the largest and most strategic transactions of 2025 shows not just which banks are winning mandates, but how they are winning them. The standout deals this year illustrate how banks are combining advisory expertise, sector specialization, and financing capability to deliver for clients.

One of the most closely watched transactions was Microsoft’s acquisition of Databricks, valued at over $40 billion. Morgan Stanley and Qatalyst Partners advised Microsoft, while Goldman Sachs represented Databricks. The deal is a prime example of how banks leverage deep relationships in the technology ecosystem. For Goldman, representing Databricks aligns with its long track record advising growth-stage technology companies through IPOs, secondary sales, and eventual strategic exits. For Morgan Stanley, the mandate reflects its strength in large-cap strategic M&A paired with capital markets execution.

In the healthcare space, Pfizer’s acquisition of Biohaven Pharmaceuticals’ migraine portfolio was another headline deal. J.P. Morgan advised Pfizer, while Centerview advised Biohaven. The deal highlights how banks win pharma mandates through long-term coverage and the ability to navigate regulatory complexity. Centerview’s reputation as a board-level advisor was key in positioning Biohaven’s value, while J.P. Morgan’s scale and global reach supported Pfizer in structuring financing and integration plans.

Energy transition has also produced significant mandates. NextEra Energy’s acquisition of a portfolio of renewable assets from Brookfield Renewable Partners was advised by Credit Suisse (UBS) for NextEra and Jefferies for Brookfield. The transaction shows how mid-tier and global banks compete effectively in specialized sectors. Jefferies’ dedicated energy transition team secured the sell-side mandate by demonstrating strong knowledge of renewable asset valuations and institutional investor appetite for infrastructure capital.

On the capital markets side, the IPO of Arm Holdings remains one of the most high-profile transactions of 2025. Goldman Sachs, J.P. Morgan, and Barclays served as lead bookrunners. The deal demonstrated the importance of syndicate strength, distribution reach, and investor education. With tech IPOs still facing selective investor demand, the success of Arm’s offering underscored the ability of leading banks to price and allocate high-demand issues in a disciplined manner.

These deals reinforce several competitive truths:

• Relationships matter, but execution credibility often determines mandate allocation
• Sector expertise is a differentiator in contested processes
• Financing capability remains a deciding factor for complex or large-scale transactions

The Competitive Playbook: How Investment Banks Are Winning Mandates and Protecting Margins

Competition in investment banking has always been intense, but in 2025 the pressure is sharper. Clients are more selective, fees are under scrutiny, and cross-border execution adds complexity. Winning mandates requires a playbook that goes beyond reputation.

Sector specialization remains a cornerstone of the competitive edge. Banks that have invested in senior coverage bankers with deep industry knowledge are securing more mandates. Whether it is Jefferies in energy transition, Centerview in healthcare, or Qatalyst in software, sector expertise signals credibility to boards and investment committees.

Integrated solutions are another differentiator. Large banks like J.P. Morgan and Goldman Sachs are packaging advisory with financing, hedging, and sometimes private capital solutions. This “one-stop” approach appeals to corporates and private equity sponsors looking for certainty of execution. The trade-off for clients is less syndication competition, but the benefit is a smoother, faster process.

Global coordination is increasingly critical, particularly for cross-border transactions. Deals such as Microsoft-Databricks or Brookfield asset sales involve multiple jurisdictions, regulatory approvals, and financing sources. Banks with strong cross-border teams, supported by regional execution hubs, are better positioned to manage these complexities.

On the cost side, fee compression continues to challenge margins. Top banks are responding by focusing on high-value mandates, moving away from commoditized transactions, and leaning into sectors where competitive intensity is lower. Independent advisors avoid the capital-intensive competition of financing deals, but they must maintain consistent deal flow to sustain profitability.

Talent remains a competitive battleground. Banks are investing heavily in retaining senior rainmakers and attracting mid-level bankers with strong client relationships. Compensation pressure is rising in key sectors, particularly technology and energy transition coverage.

The competitive playbook in 2025 centers on:

• Building deep sector franchises with senior coverage talent
• Offering integrated advisory and financing solutions to provide certainty of execution
• Leveraging global networks for complex, cross-border transactions
• Managing margin pressure by prioritizing high-value mandates over volume-driven approaches

Investment banks in 2025 are succeeding by being selective, specialized, and execution-focused. The leading firms are not winning mandates on brand recognition alone, but by demonstrating deep sector expertise, providing integrated advisory and financing solutions, and delivering certainty of execution in complex environments. Bulge brackets continue to dominate mega-cap transactions, yet independent advisors and mid-market banks are thriving in specialized sectors where credibility, speed, and targeted coverage drive value. Technology, healthcare, energy transition, and infrastructure remain the busiest verticals, shaping how banks allocate talent and capital.

For corporates, sponsors, and investors, the choice of banking partner is increasingly about fit, not size. The investment bank that delivers the best outcome is the one with the right team, the right capital capabilities, and a strategy aligned with the specifics of the transaction—precision, not scale, defines leadership in today’s market.