For their part, investment bankers earn their commissions in a number of ways including via helping the companies they represent sell shares in public and or private capital markets. Your submission has been received! Private equity is the process in which funds are collected from a number of wealthy individuals or large institutional investors and are then invested in businesses that have promising futures, or businesses that are currently not making profits, but have good potential for growth given the right management and direction. In movies and on TV, the typical Wall Street person who works crazy hours and gets stressed out over the DOW Jones is an investment banker. Aligning People in M&A for a Better Outcome, How to Build and Align a Corporate Development Team with Multiple Mandates, The HR Practitionerâs Guide to Mergers & Acquisitions Due Diligence, How To Plan a Divestiture From an Accounting Perspective, Summit Recap: Bridging the Gap Between Corporate Development and Integration, Making Joint Ventures Successful - Top Secrets Revealed, Summit Recap: Avoiding Valuation Surprises and Accounting for M&A Transactions, How the Approach to Valuation Frames Success for Diligence and Integration, Virtual Summit Recap: Virtualizing the People Experience During Integration, How to Identify and Deal with Issues During Diligence in M&A, How to Develop International Joint Ventures Successfully, Building an Effective Internal Communication Plan for M&A, Building a Corporate Development Function From Scratch, How to Successfully Build and Execute M&A Transactions, Download Private Equity Due Diligence Checklist, How to Plan a Divestiture from HRâs Perspective, How to Improve Your M&A Process Using Agile, Building a Communications Plan from Scratch, The Impact of Leadership on Deal Outcomes, How to Successfully Build a Corporate Development Function, Demystifying the Employee Stock Ownership Plan (ESOP), How to Focus Less on Cost Synergies and Increase Value Creation, How to Plan a Divestiture from HR's Perspective, How to Deliver Maximum Value from Divestitures, How to Drive Transformational Change Through M&A, Investment Banking: How to Best Prepare a Company for an Acquisition, Behind the Scenes: Effective Deal Sourcing and Closing, How Trending Technology is Impacting the M&A Industry, Common Integration & Divestiture Challenges & How to Solve Them, The Role of M&A Lawyers [Real Stories from an M&A Attorney], How to Best Extract and Protect an M&A Key Value Drivers, How to Plan Successful Cultural Assessment in M&A, How to Enable and Maintain High-Performance Deal Teams, Disrupting and Rethinking the Stagnant Approaches to Deal Management, How to Plan M&A Integration and Create Integration Strategies, A Guide to Planning Successful Divestitures by M&A Advisor, Googleâs New Game Plan for More Successful Mergers and Acquisitions, Creating Corporate Development Acquisition Strategies - Expert Advice, M&A, Due Diligence, and Integration from an Attorney's Point of View, The Importance of Communication, Due Diligence and Post-Closing Integration, How to Set Clear M&A Objectives: M&A Advice from a Former Marine, Buy and Sell-Side in a Corporate World & Strategies on Both Sides, Balancing Legal and Business Concerns in M&A Transactions, Why Decisive Communication is Vital for a Successful Integration, How to Sell A Bank: The True Story of Ups and Downs of M&A Banking, How Cisco Manages M&A Integration: Strategy & Process Explained, Bolt-on Acquisitions: Everything You Need to Know, M&A in the Private Equity Realm: Diligence, Integration, Synergies, The Importance of Conducting a Quality of Earnings in M&A, How Strong Relationships Lead to Successful M&A, Private Equity: In private equity, you are like a real estate investor. Investment Banking: Investment banks are like realtors (i.e. The function of who pays the most eventually comes down to the scale of the firm or bank, and the risks associated with ownership in PE. All rights reserved. They are the same in the fact that they both function by pooling money from investors and using that money to purchase shares in companies. Private Equity vs. Investment Banking Raising capital is the purpose of both private equity and investment banking, but these two entities go about it in different ways.