2021 was a good year for investment banking. Global merger and acquisition deals rose to more than $5.8 trillion while Initial Public Offerings (IPOs) rose to $600 billion. Companies also raised almost $10 trillion in debt. Since this trend will likely continue, there is a likelihood that many investment banks will do well this year. Here are some of the best small-cap investment bank stocks to invest in 2022.
Lazard (NYSE: LAZ) is one of the most storied investment banks in the world. The company, known for its “great men”, offers its services across two divisions.
It offers financial advisory and asset management. In its financial advisory division, Lazard offers advice to companies on key areas like M&A, restructuring, and asset sales. In asset management, the firm has more than $267 billion in assets under management (AUM).
The Lazard stock price rose by 7% in 2021, lagging behind those of other similar companies. This performance was partly because of the slight decline in its AUM.
Still, there is a likelihood that the stock will do well in 2022. It was the ninth biggest player in key areas like M&A and its stock is slightly undervalued compared to peers. Its business also did well, with its total revenue rising to more than $3 billion in the trailing twelve months.
Evercore (NYSE: EVR) is a small-cap investment bank with a market capitalization of more than $6 billion. The company offers a number of services like capital markets, investment advisory, and institutional equities. Evercore also offers investment management solutions.
The Evercore stock price rose by more than 26% in 2021 as the company’s business boomed. For example, the company took Warby Parker public and advised General Electric on its plan to split into three. It also advised Canada Pacific on its Kansas City Southern acquisition. There is a possibility that the Evercore stock price will rise in 2022.
Moelis & Company
Moelis (NYSE: MC) is a small-cap investment bank valued at more than $4 billion. The company was started by Ken Moelis. It offers a number of services like restructuring, initial public offerings, and mergers and acquisitions.
The Moelis stock price rose by 50% in 2021 as its business boomed. The company handled some of the best deals were in the Special Purpose Acquisition Company (SPAC) industries. It also participated in the sale of Aramco’s gas pipeline business to Blackrock Real Assets.
Moelis revenue rose from more than $943 million in 2020 to more than $1.53 billion in the trailing twelve months. There is a likelihood that the stock will keep rising in 2022.