"mm banks" most likely refers to middle-market banks, which are financial institutions that provide investment banking services to companies in the middle market.
Here's a more detailed explanation:
Understanding Middle-Market Banks
Middle-market banks cater to companies that are larger than small businesses but smaller than large corporations. These companies typically have annual revenues ranging from $10 million to $1 billion.
Services Offered
Unlike boutique investment banks, middle-market banks usually offer a full suite of services, similar to those provided by larger, "bulge bracket" banks. These services typically include:
- Equity Capital Markets (ECM): Assisting companies with raising capital through the issuance of stock.
- Debt Capital Markets (DCM): Helping companies raise capital through the issuance of bonds and other debt instruments.
- Mergers & Acquisitions (M&A): Advising companies on buying, selling, or merging with other companies.
- Restructuring: Helping companies reorganize their finances or operations to improve performance or avoid bankruptcy.
- Financing and Asset Management: Providing loan services and managing assets.
Key Characteristics of Middle-Market Banks
- Focus on Mid-Sized Companies: Their core clientele are companies with revenues within the $10 million to $1 billion range.
- Full-Service Offering: They provide a wide range of investment banking services, similar to larger banks.
- Relationship-Oriented: They often build strong relationships with their clients, offering personalized service.
Examples of Middle-Market Banks
While specific examples can vary depending on the source and definition used, some well-known firms often classified as middle-market banks include:
- William Blair
- Robert W. Baird
- Houlihan Lokey
- Lincoln International
In summary, middle-market banks are important players in the financial landscape, providing essential investment banking services to mid-sized companies.
