Industry Trends
Master industry knowledge and trends for investment banking interviews
Understanding Industry and Product Groups in IB
Investment banks are typically divided into two main types of teams: Industry/Coverage Groups and Product Groups. Understanding these structures is essential when identifying your group preferences and preparing for coffee chats.
Industry / Coverage Groups
These teams specialize in specific sectors and build deep relationships with clients in those industries. Their focus is to understand market trends, competitive dynamics, and transaction drivers across the sector.
Common Industry Groups:
Technology, Media, and Telecom (TMT)
Covers software, semiconductors, media, etc.
Consumer & Retail (C&R)
Food, beverage, personal care, apparel.
Healthcare
Pharma, biotech, medical devices, providers.
Industrials (GIG)
Aerospace, defense, transportation, industrial services.
Energy / Natural Resources
Oil & Gas, Renewables.
Financial Institutions (FIG)
Banks, insurance, fintech.
Real Estate (RE)
REITs, commercial/residential.
Financial Sponsors
Focuses on private equity client coverage.
Power & Utilities (PUG)
Covers electric, gas, water infrastructure.
Product Groups
Product groups execute specific types of transactions and work across all industries. You'll develop strong technical skills here, especially in modeling and deal execution.
Common Product Groups:
Mergers & Acquisitions (M&A)
Focused on buy-side/sell-side advisory.
Leveraged Finance (LevFin)
Structures debt for acquisitions, including high-yield bonds and loans.
Equity Capital Markets (ECM)
IPOs, follow-on offerings, SPACs.
Debt Capital Markets (DCM)
Bonds, investment-grade debt, credit ratings.
Restructuring
Bankruptcy, distressed M&A, creditor advisory.
Choosing the Right Group
When deciding where to focus, consider:
- Fit with your background or interests (e.g., prior work in healthcare, energy policy, or tech startups).
- Geopolitical awareness or macro trends (e.g., defense industry post-Ukraine/Israel conflicts, energy transition).
- Modeling intensity & skill development (product groups often have steeper technical ramps).
- Client exposure vs. technical work (coverage groups have more dialogue with clients, product groups handle execution).