Investment Banking in Toronto

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Blog Author :

WallStreetMojo Team

Edited by :

Ashish Kumar Srivastav

Reviewed by :

Dheeraj Vaidya, CFA, FRM

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Overview of Investment Banking in Toronto

A few things get highlighted when we talk about the investment banks in Toronto. Here are the few factors that you will notice if you ever apply for an investment banking job in Toronto:

  • Smaller market size: Unlike the USA, Toronto (one of the few financial hubs in Canada) has a much smaller market size regarding investment banking. You can get major benefits by directly networking with a big shot. And as a result, everyone knows each other.
  • Niche industry focus: In this case, Toronto’s investment banking market is quite a niche in scope. In Toronto, the industry focuses on tech, biotech, and pharmaceutical industries. However, if we consider the whole of Canada, the industry focuses on mining, energy, and natural resources.
  • Not very structured: You are not from a direct MBA background. Because in Toronto, the structure of the investment banking market is quite unsystematic. For example, getting an MBA is a plus point but not necessary to enter investment banking. At the same time, you may get promotions quite fast (from analyst to associate).
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Services Offered by Investment Banking in Toronto

investment banking in toronto

The focus of the investment banks in Toronto is on middle markets. However, since the market is niche and only focuses on a few industries, reaching out to a wider range of customers may not be the goal.

Here are the few significant services offered: -

#1 - M&A Advisory

The investment banks in Toronto answer how a company should approach mergers and acquisitions with their unique approach and outstanding technical efficiency. From doing due diligence to analyzing the scenario with the client to arranging the finance, Toronto’s investment banks are unparalleled.

#2 - Private, Public, and Debt Financing

Financing a business is one of the most important services offered by investment banks. For private financing, the banks prepare thoroughly for the presentation, do the due diligence on their own, and close the deal by accelerating the momentum. In public funding, the investment banks deal with convertible debentures, preferred shares, subscription receipts, and common shares. Lastly, for debt financing, the investment banks pursue various financial sponsors, look at different capital structure alternatives, and finally close the deal.

#3 - Liquidity and Divesting

The investment banks in Toronto do their best to increase the business value of their clients. That is why they find the most profitable strategies to sell off the business, search out potential buyers who can buy the company, and analyze and recommend a course of action.

#4 - Strategy Advisory

The strategy is one of the most sensitive parts of any business – it can make or break a business. That is why while helping clients with other services, strategy advisory is one of the most sought-after services the investment banks in Toronto provide. From evaluating strategic alternatives to finding out the most appropriate strategic course of action – every step is clearly defined and flawlessly executed by the investment banks in Toronto.

Top Investment Banks in Toronto

Here is the list of some of the top investment banks in Toronto: -

  1. National Bank Financials
  2. INFOR Financial Group
  3. Canaccord Genuity
  4. GMP Securities
  5. Paradigm Capital
  6. JP Morgan
  7. Goldman Sachs
  8. Bank of America – ML
  9. HSBC
  10. UBS
  11. Deutsche Bank
  12. Morgan Stanley
  13. Citibank
  14. Lazard
  15. Wells Fargo
  16. Alvarez & Marsal
  17. Dundee Capital Markets
  18.  Haywood Securities
  19. Greenhill
  20. Evercore

Recruitment Process

In the recruitment process, one thing always stands out. And it is networking. If you do not network a lot, your chances are bleak. Since Toronto does not have many vacancies for investment banking professionals, until you directly network with the head-honchos of big investment banks in Toronto, you won’t get a solid internship experience.

If you can get an internship with a top bank, your next move would be perfect for the environment. In the case of investment banking recruitment in Toronto, being fit for the team is super important.

Along with the super day interviews, you may need to sit for additional rounds to finally pick the best team and best fit for the organization.

Culture

The investment banking culture in Toronto is as similar as in the USA. You are greatly mistaken if you think you can leave the office after 8 hours a day because you work in Toronto.

You need to work at least 90+ hours every week to reach somewhere. It means no matter what, you need to put a long time into your job, day in and day out.

Investment Banking in Toronto - Salaries

As per payscale, the average investment banking analyst in Toronto earns C$61,445 per annum, which is quite good.

  • The basic salary ranges from C$41,612 to C$77,09.
  • Bonus varies from C$6,500 to C$27,500.
  • The total pay-out is C$53,725 to C$92,910.

As you can see from above, you can be rewarded if you want to enter investment banking in Toronto.

Exit Opportunities

In Toronto, investment banking professionals tend to stick to investment banking much more than their peers in the USA. Of course, a few want to go out and change sides (like going to the buy-side) but rarely do people change their career and do something else.

And also, if someone does MBA, they do not go for investment banking altogether in Toronto. So, if you plan to do your MBA after pursuing a career in investment banking for a few years, you may need to consider another job.