US Investment Banking Fees Finish Stronger in Q3

Surging deal values powered higher fee growth in the third quarter for investment bankers in the upper and middle markets.

In the third quarter across the upper and middle markets, average total year-over-year growth in advisory revenues was 16 percent and average total growth in overall investment banking revenues was 26 percent.
On average, during the first nine months of the year, total investment banking revenue growth came in at 15 percent for upper-market banks, 17 percent in the middle market, and 16 percent at boutique firms.
Despite persistently low deal counts this year, strong deal values have continued to push investment banking upward, with Q3 outperforming year-over-year growth trends in Q2.

While larger banks typically break out advisory revenues—primarily M&A and related financial advisory fees—as a separate line item, many smaller boutiques do not. This earnings summary covers a broad set of leading American investment banks that report their revenues publicly. When we refer to “advisory revenues” specifically, we only use figures from those banks that disclose an M&A/advisory category separately in their earnings reports. For smaller boutiques that don’t break this out and include multiple services under the advisory category, that M&A activity is captured here under total investment banking revenues.

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For the first nine months of the year, investment banking advisory revenues were up an average of 16 percent year-over-year at leading American firms in the upper and middle markets.

Meanwhile, total investment banking revenues, which include debt and equity capital raising services, were also up 16 percent during the same period.

During that period, Citigroup and Goldman Sachs led the market in advisory revenue growth across upper and middle market firms.

Citigroup reported $1.26 billion in advisory fees with a year-over-year gain of 41% and Goldman Sachs reported $3.37 billion with a year-over-year gain of 31%.

Meanwhile, among leading boutique firms, which often work across upper and middle markets, Moelis saw the largest growth in total investment banking revenues year-over-year during the same period at 36% with $1.03 billion.

Overall, Moelis reported the highest year-over-year growth in investment banking revenues for the same period among all banks surveyed.

On average, total investment banking revenue growth came in at 15 percent for upper-market banks, 17 percent in the middle market, and 16 percent at boutique firms, for the same period.

Overall, in the US, total deal values rose 21% in the first nine months of the year compared with the same period in 2024, outpacing the global increase of 10%. Deal count, however, fell 6% in the US, closely tracking the 4% drop worldwide, according to BCG’s latest Annual M&A report.

Still, compared to the second quarter, revenue data from leading firms suggest the market for M&A and investment banking more generally continues to improve.

In the second quarter, investment banking activity was still in a tentative recovery. Deal flow was limited and growth was concentrated in a handful of firms, while a number of firms saw year-over-year losses. In the third quarter, year-over-year losses remained for a modest number of middle market and boutique banks, but overall, the number of banks reporting losses decreased.

By the third quarter, the recovery had become broader. Large banks regained momentum, deal values stayed strong even as deal counts slipped, and overall market conditions improved.

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The Third Quarter

In the quarter ending on Sep. 30, Goldman Sachs and Bank of America led the market in year-over-year advisory revenue growth.

Goldman Sachs reported $1.40 billion in advisory revenues with a year-over-year gain of 60 percent and Bank of America reported $536 million with a gain of 53 percent.

During the same period, Oppenheimer and Bank of America led the market in total revenue growth year-over-year at 50 percent and 48 percent with $75 million and $1.16 billion, respectively.

Among leading boutique firms, Evercore saw the largest total revenue growth year-over-year at 46 percent for the same period.

Across the upper and middle markets, average total year-over-year growth in advisory revenues was 16 percent and average total growth in overall investment banking revenues, including boutique firms, was 26 percent for the same period.

On average for the same period, total revenue growth came in at 30 percent for upper-market banks, 28 percent in the middle market, and 19 percent for boutique firms.

Quarter-over-quarter, total fees in the upper market grew at 24 percent, 46 percent in the middle market, and 6 percent among boutiques.

‍Upper-Market Banks

In the upper market, Citigroup and Goldman Sachs led in advisory revenue growth for the first nine months of the year, reporting year-over-year gains of 41 percent and 31 percent respectively, while Morgan Stanley and Wells Fargo ranked at the bottom with 10 percent.

For the third quarter, Goldman Sachs and Bank of America led in advisory revenue growth, reporting year-over-year gains of 60 percent and 53 percent respectively, while Citigroup and JPMorgan ranked at the bottom with 8 percent and 9 percent respectively.

Quarter-over-quarter, Bank of America and Morgan Stanley led in advisory revenue growth, reporting gains of 84 percent and 35 percent respectively, while Citigroup and JPMorgan ranked at the bottom with 5 percent and 10 percent respectively.

‍Middle-Market Banks

In the middle market, Jefferies and Piper Sandler led in advisory revenue growth for the first nine months of the year, reporting year-over-year gains of 24 percent and 20 percent respectively, while Oppenheimer and Raymond James ranked at the bottom with -9 percent and -1 percent respectively.

For the third quarter, Stifel and Piper Sandler led in advisory revenue growth, reporting year-over-year gains of 31 percent and 13 percent respectively, while Oppenheimer and Raymond James ranked at the bottom with -33 percent and -20 percent respectively.

Quarter-over-quarter, Raymond James and Jefferies led in advisory revenue growth, reporting 55 percent and 43 percent, while Oppenheimer and Piper Sandler ranked at the bottom with 0 percent and 3 percent. ‍

Boutique Banks

Among boutiques, Moelis and Evercore led in total revenue growth for the first none months, reporting year-over-year gains of 36 percent and 32 percent respectively, while Perella Weinberg and Lazard ranked at the bottom with -18 percent and 5 percent respectively.

For the third quarter, Evercore and PJT Partners led in total revenue growth, reporting year-over-year gains of 46 percent and 37 percent respectively, while Lazard and Moelis ranked at the bottom with -30 percent and 15 percent respectively.

Quarter-over-quarter, Evercore and PJT Partners led in total revenue growth, reporting gains of 27 percent and 10 percent respectively, while Perella Weinberg and Houlihan Lokey ranked at the bottom with -14 percent and -2 percent respectively.

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