Fees for initial public offerings (IPOs) and private equity (PE) deals vary. For IPOs, banks typically charge up to 7% of the total capital raised, often around 3-5% for large deals. Fees for PE transactions are usually based on a percentage of the transaction's value, often lower but negotiable.
You're right, banks like JP Morgan do both, but generally, IPOs are a bigger book of business for them.
I’m curious - doesn’t Dimon make money regardless of whether deals are IPOs or sales to PE? Or are banker fees more for IPOs?
That's a really good question.
Fees for initial public offerings (IPOs) and private equity (PE) deals vary. For IPOs, banks typically charge up to 7% of the total capital raised, often around 3-5% for large deals. Fees for PE transactions are usually based on a percentage of the transaction's value, often lower but negotiable.
You're right, banks like JP Morgan do both, but generally, IPOs are a bigger book of business for them.
Thanks Eric!