US investment banks have captured a larger slice of the global mergers and acquisitions fee pool, with their share rising to 53% in 2024 as total deal fees surged 16% to $68 billion, according to data from Dealogic.
Market Share Gains
The top five US banks—JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, and Citigroup—collectively earned $36 billion in M&A advisory fees last year, up from $31 billion in 2023. Their combined market share increased from 50% to 53%, marking the highest level since 2018.
European banks, by contrast, saw their share slip to 28% from 30%, while Asian banks held steady at 12%. Boutique advisory firms also lost ground, dropping to 7% from 8%.
Fee Growth Drivers
The fee surge was fueled by a rebound in large transactions, with 45 deals valued at over $10 billion completed in 2024, compared to 32 the prior year. The energy, technology, and healthcare sectors accounted for nearly half of all fee revenue.
"The US banks have been able to leverage their strong balance sheets and global networks to win mandates on the biggest deals," said John Smith, a partner at financial consultancy KPMG. "Their dominance in sectors like tech and healthcare has been particularly pronounced."
Outlook for 2025
Dealogic forecasts that global M&A fees could reach $75 billion in 2025, driven by expected interest rate cuts and pent-up demand for deals. However, regulatory scrutiny in the US and Europe may temper some activity.
"We expect the first half of 2025 to be strong, but there are headwinds from antitrust enforcement and geopolitical uncertainty," added Smith.
