Goldman Sachs remains the undisputed market leader in mergers and acquisitions (M&A) advisory, but the ranking below has changed. JPMorgan Chase and the investment boutique Evercore have displaced Morgan Stanley as Goldman’s main challengers.

JPMorgan earned advisory fees of $3.29 billion in 2024, while Evercore was also just ahead of Morgan Stanley with $2.45 billion, which amounted to $2.38 billion.

M&A consulting is considered the prestige business of investment banking, as it operates with high margins and companies are willing to pay high fees for strategic transactions. While IPOs or bond issuances require large teams, M&A deals often rely on a few advisors – who must, however, possess excellent networks and negotiation skills.

JPMorgan moves closer to Goldman Sachs

For a long time, Morgan Stanley was the clear number two behind Goldman Sachs. However, the current figures show that JPMorgan has reduced the gap to Goldman Sachs to a historic low. In the fourth quarter of 2024, the bank exceeded Goldman Sachs with $1.06 billion in pure M&A fees - for the second time last year.

JPMorgan acted extremely aggressively," stated a CEO of a Wall Street bank. "They consistently argued: 'We are your largest lender, so we should also handle your M&A advisory.'

Since 2023, JPMorgan has been investing $200 million in expanding its investment banking, including the targeted poaching of dealmakers. CEO Jamie Dimon is known for personally calling major clients to secure business for his bank.

Evercore and the Renaissance of Investment Boutiques

Another winner of the new order is Evercore.

Evercore has expanded its business beyond pure M&A advisory into private fund transactions and restructuring advisory – two segments where the big banks are less present.

Evercore has established itself as a leading boutique bank," said Aidan Hall, analyst at Keefe, Bruyette & Woods.

Morgan Stanley under Pressure – Hope through New CEO

Morgan Stanley, once one of Wall Street's "Blue Bloodlines," is struggling with a strategic shift. Under former CEO James Gorman, the focus was on wealth management, a stable but less prestigious area.

With Ted Pick as the new CEO, there is hope in the M&A division that more will be invested again in classic investment banking. "It was a relief that Ted became CEO – he comes from investment banking, not from wealth management," said a Morgan Stanley banker.

But building a strong M&A business takes time. "Today's deals were initiated three years ago," explained a former investment banker from a major Wall Street bank.

New Challengers on Wall Street

Not only JPMorgan and Evercore benefit from the change: Jefferies has also secured market share and surpassed major banks Bank of America and Citigroup with $1.8 billion in M&A fees.

Wall Street is experiencing a redistribution of power – and Goldman Sachs faces competition not only from traditional banks but increasingly from agile boutiques.