Bank of America has merged its FinTech and technology investment banking teams.
The 50 bankers in its FinTech team will join the 200 in its tech group, reflecting the growing similarities between the two industries, Bloomberg reported Monday (Oct. 14).
“FinTech payments and software are bound to intersect,” Kevin Brunner, chairman of global M&A and global head of technology, media and telecom investment banking at Bank of America, said in the report.
This change comes after Brunner’s appointment this summer to his new role after serving as co-head of global M&A, according to the report.
The announcement of the organizational changes at Bank of America came at a time when the PYMNTS FinTech IPO Index gained 0.4% last week, with several platforms rallying by double-digit percentage points.
On Oct. 2, it was reported that a top banker at JPMorgan Chase said that the initial public offering (IPO) market for companies backed by private equity firms is heating up as firms seek to lower their debt loads or provide existing investors an opportunity to cash in.
In September, a top Citigroup banker reportedly said that a handful of tech companies are considering going public on U.S. exchanges before the end of the year and that they could benefit from demand for high-growth stocks.
Investors see high-growth stocks like those of the tech companies as being more resistant to economic slowdowns and more likely to benefit from lower interest rates, Paul Abrahimzadeh, co-head of equity capital markets for North America at Citigroup, said.
On the mergers and acquisitions (M&A) front, a September report indicated M&A activity is expected to slow during the fourth quarter due to uncertainty around the U.S. elections before picking up again in 2025.
Companies are putting off large deals until after the elections to have a better idea of the new administration’s likely regulatory and economic policies, to avoid becoming a “campaign talking point” and to await the expected further Federal Reserve rate cuts that are expected to contribute to an increase in dealmaking next year.
Private equity buyouts are forecast to pick up as well.
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