Investment banks do not serve the general public. Their clients are large corporations, institutional investors, governments, and occasionally very high-net-worth individuals. Unlike commercial banks, which offer savings accounts, personal loans, and credit cards to everyday consumers, investment banks focus exclusively on complex financial needs at scale. Their services are designed for entities that issue securities, engage in mergers, or move capital across markets—not for individuals managing personal finances.
This guide explains who these clients are and how investment banks help them achieve their goals.
Corporations
Corporations work with investment banks when they face financial decisions that are too large or complex for traditional banks to handle. This relationship is not just about raising money; it’s about having a long-term partner that understands the company’s business model, market risks, and strategic goals.
For example, when a company plans to go public through an Initial Public Offering (IPO), it needs a bank that can value the business correctly, tell the company how much investors might be willing to pay, and prepare all the legal and financial documents required by stock market regulators. The investment bank also connects the company with big investors—like pension funds or mutual funds—who are interested in buying the shares.
This relationship often continues after the IPO. The bank may advise on future fundraising, help the company raise debt by selling bonds, or guide it through acquisitions and mergers. These deals require deep knowledge of the industry, financial modeling skills, and access to the right investors and partners.
A good example of this kind of relationship is the one between CATL, the world’s largest battery maker, and its investment banks. In 2023, CATL raised billions of dollars in what became the largest IPO of the year. JPMorgan and Bank of America helped sell the shares, advised on pricing, marketing, and legal structuring, and contributed in helping CATL secure its position as a global market leader.
Governments
Governments rely on investment banks in many of the same ways large corporations do—but on a national or regional scale. These relationships are built on trust, expertise, and long-term strategic goals. Governments don’t just need money; they need partners who understand how global capital markets work, who can help structure deals that attract international investors, and who can manage sensitive political and economic risks.
One of the most common services governments seek is help with issuing sovereign bonds. These are debt instruments that allow governments to borrow money from investors worldwide. But issuing a bond is not as simple as setting a price and selling it. Governments turn to investment banks to design the bond terms, assess market demand, set the interest rate, and promote the bond to global investors. The goal is to raise the money at the lowest possible cost while ensuring the bond is attractive to large institutional buyers.
Investment banks also help governments when they decide to privatize state-owned companies. This involves finding buyers, setting a fair price, and often preparing the company for an IPO. Privatizations can be politically sensitive and financially complex, so governments rely on investment banks to manage the process carefully and maximize public value.
A good example of this partnership is the role investment banks played in managing sovereign bond issuances during the COVID-19 pandemic. Countries like Italy, Spain, and the UK needed to raise record amounts of money to fund healthcare, economic relief, and public services. Investment banks worked with these governments to issue over $10 trillion in bonds globally in 2020. They provided market insights, managed investor relationships, and helped governments secure the funding they urgently needed to respond to the crisis.
Financial Institutions
Financial institutions—including banks, insurance companies, and asset managers—often turn to investment banks not just for funding, but for technical expertise and specialized financial structuring. These relationships are less visible to the public, but they are critical to keeping the financial system running smoothly.
One of the key services investment banks provide to these clients is securitization. This means helping banks and lenders turn things like mortgages, car loans, or credit card debt into tradeable financial products. By packaging these assets and selling them to investors, banks can free up cash on their balance sheets and make new loans. This process is highly technical, and investment banks provide the legal structuring, market pricing, and investor access needed to make it work.
Investment banks also help other financial firms with balance sheet restructuring. This involves advising on how to organize a company’s debts and assets to meet regulatory requirements or improve profitability. For example, a bank might need to reduce its risk exposure or sell part of its business to meet capital rules set by financial regulators. Investment banks provide the data analysis, financial models, and deal structuring to make these moves possible.
One recent example is Apollo Global Management’s acquisition of Credit Suisse’s securitized products business in 2023. Apollo, one of the largest private equity and credit investors in the world, worked with investment banks to structure and finance the deal. This allowed Apollo to expand its portfolio of credit products, while Credit Suisse offloaded risk and raised capital. It’s a clear example of how investment banks sit at the center of complex financial deals between major institutions.
Institutional Investors
Institutional investors—such as pension funds, sovereign wealth funds, endowments, and private equity firms—rely on investment banks to unlock high-value investment opportunities and manage large, complex transactions. These relationships are built on deep financial expertise and access to exclusive markets.
These investors often manage billions or even trillions of dollars on behalf of workers, governments, universities, or wealthy individuals. While they have internal teams of analysts and portfolio managers, they still need investment banks to help them with specialized services like buying companies, entering new markets, or exiting investments.
Investment banks provide these investors with detailed financial analysis, company valuations, and deal structuring. For example, when a private equity firm wants to buy a company, investment banks help evaluate the target business, conduct financial modeling, manage negotiations, and secure financing. They also advise on the exit strategy—whether by selling to another buyer, launching an IPO, or merging with another company.
A recent example is Bain Capital’s interest in acquiring Craneware, a healthcare software provider based in the UK. Bain Capital, one of the world’s largest private investment firms, works with investment banks to assess the company’s value, structure the potential deal, and plan the financing. Investment banks act as trusted partners in these transactions, helping reduce risks and improve the chances of a successful investment.
Final Thought
Investment banks work with a specific set of clients: large corporations, governments, financial institutions, and institutional investors like pension funds and private equity firms. These clients have financial goals and challenges that require expert advice, complex structuring, and access to global markets—services that go far beyond what commercial banks can offer.
A company looking to raise billions to expand globally, a government needing to sell bonds to fund public projects, a bank seeking to restructure its balance sheet, or a private equity firm planning a billion-dollar acquisition all face decisions that carry major financial and economic impact. These are the kinds of high-stakes moves where investment banks come in, providing the technical expertise, market access, and strategic advice needed to make them happen.
This is why investment banks do not work with individuals or small businesses. Their services are designed for organizations operating at the largest scale—those whose decisions can shape industries, economies, and even public policy. Knowing who these clients are helps explain what investment banking really is, why it matters, and why it continues to play a key role in the global economy.