Market Insights Financial Corporate Finance

Investment Banking - South America

South America

In South America, the projected revenue in the Investment Banking market market is expected to reach US$43.41bn by 2024.
This forecast suggests an annual growth rate (CAGR 2024-2029) of 1.35%, resulting in a projected total amount of US$46.41bn by 2029.
Comparing this to global figures, it is worth noting that the in the United States is anticipated to have the highest revenue of US$130.10bn in 2024.
In South America, investment banking in the corporate finance market is experiencing a surge in deal activity due to the region's growing economy and increasing foreign investment.

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Analyst Opinion

The Investment Banking market in South America is experiencing a shift in customer preferences, driving various trends and developments in the region.

Customer preferences: Customers in South America are increasingly seeking personalized and tailored investment banking services to meet their specific financial needs. This trend is driven by a growing awareness of the benefits of customized financial solutions and a desire for more individualized attention from investment bankers.

Trends in the market: In Brazil, one of the largest economies in South America, there is a noticeable trend towards investment in renewable energy projects. This shift is fueled by government incentives and a growing focus on sustainability in the region. Investment banks are capitalizing on this trend by offering specialized advisory services and financial products tailored to the renewable energy sector.

Local special circumstances: In Argentina, economic volatility and currency fluctuations have led to a unique set of circumstances in the investment banking market. Customers in Argentina are increasingly turning to investment banks for guidance on hedging against currency risks and navigating the complex economic environment. As a result, investment banks in Argentina are focusing on providing risk management solutions and innovative financial products to meet the needs of their clients.

Underlying macroeconomic factors: The overall economic stability and growth prospects in South America play a significant role in shaping the investment banking market in the region. Factors such as political stability, regulatory environment, and access to capital impact the level of investment activity and the demand for investment banking services. As South American economies continue to evolve, investment banks are adapting their strategies to capitalize on emerging opportunities and mitigate risks associated with market fluctuations.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.