The equity capital markets (ECM) group advises corporations seeking to raise capital through equity, selling a portion of their ownership in exchange for an infusion of capital.

Subdivisions

• Origination: Pitches strategies on capital-raising approaches and executes financing deals, including Initial Public Offerings (IPOs) and follow-on offerings
• Syndication: Coordinates deal execution with other banks, as many equity deals distribute risk by involving a broader array of financial institutions
• Convertibles: Assist companies in raising capital through convertible bonds, which initially function as debt issuances and can convert into equity if the company's stock price reaches a predetermined level. Convertibles provide flexibility in capital structuring.

Types of Equity Deals

• Initial Public Offerings (IPOs)
• Seasoned/Follow-On Offerings
• Secondary Offerings
• Concurrent Offerings
• Equity Private Placements
• At-the-Market Offerings
• Rights Offerings

Recruiting

In terms of recruiting for ECM roles, candidates should emphasize their expertise in accounting, Discounted Cash Flows (DCF) analysis, and understanding of equity and enterprise value. It's more important to showcase knowledge of equity market trends, recent Initial Public Offerings (IPOs), Secondary Equity Offerings (SEOs), and index performances rather than delving into Leveraged Buyout (LBO) or merger models. Demonstrating awareness of current equity market dynamics and relevant financial metrics is crucial for success in ECM roles.