What is the primary function of an ECM team?

The primary function of an Equity Capital Markets (ECM) team is to help companies execute transactions in primary markets. This includes activities such as assisting businesses in issuing new equity securities, such as initial public offerings (IPOs) or follow-on offerings. The ECM team collaborates with clients to tailor transactions to meet their funding needs, structures the deals, supports pricing decisions, and engages with potential investors to foster demand for the issued shares.

By focusing on primary market transactions, the ECM team plays a vital role in raising capital for companies looking to expand, fund operations, or undertake new projects. This differentiates it from other teams that may focus on mergers and acquisitions, debt financing, or research on stock performance, which pertain to different aspects of financial markets and services.