Asset management and investment banking are two very prominent financial services sectors in Nigeria currently. However, not many understand the specifics that differentiate the two services as well as the distinct clientele that each serves. In this article, we clarify the unique roles of asset management and investment banking, and the type of financial service each offers.
To understand the distinction between asset management and investment banking, let’s start with their definitions:
What is Asset Management?
Asset management is the professional handling of money, assets and investments on behalf of a client to ensure maximum returns. This process involves buying, holding, and selling various financial assets including stocks, bonds, commodities, and alternative instruments and requires executing a proven investment strategy to help a client achieve their investment goal.
What is Investment Banking?
Investment banking is a financial service that involves providing financial advisory and expertise to investors, corporations and governments towards organising and executing sophisticated financial transactions for business capital-raising such as mergers and acquisitions, initial public offerings, bond issuance, etc.
Asset Management and Investment Banking Compared
Although asset management and investment banking are both services that help clients manage their capital, asset management focuses on handling an investor’s portfolio through buying or selling of equity, bonds and other securities for optimum returns. Investment banking on the other hand involves assisting businesses raise money through selling equity, issuance of bonds, and organising private acquisitions or mergers. Here is a breakdown of the differences between asset management and investment banking.
1\. Differences Between Asset Management and Investment Banking Services
ASSET MANAGEMENT
INVESTMENT MANAGEMENT
Involves buying and management of securities and other assets to maximise gains for a client.
Involves selling of securities and executing private acquisition arrangements to raise capital for a business.
2\. Differences Between Asset Management and Investment Banking Clientele
ASSET MANAGEMENT
INVESTMENT MANAGEMENT
Retail investors, institutional investors, government organizations, and high-net-worth individuals.
Corporations, government, and financial institutions.
3\. Differences Between Asset Management and Investment Banking Objectives
ASSET MANAGEMENT
INVESTMENT MANAGEMENT
To maximise investment returns and grow clients’ income.
To raise money for business growth and expansion.
FBNQuest- Leading Provider of Asset Management and Investment Banking Services in Nigeria
FBNQuest is a leading provider of asset management services and investment banking solutions in Nigeria.
Our investment banking solutions cut across every aspect of corporate financing including long-term treasury management, as well as equity and debt financing and mergers. Equally, our reputable asset management services provide you with a wide range of financial and investment management services, to help you maximise your earnings and reach your financial goals.
With over 20 years in the business, we boast of a diverse clientele including federal and state governments, and larger corporations across all sectors of the economy.
Want to learn more about our asset management and investment banking solutions? Visit fbnquest.com/our-solutions/ today!