Industry Insight Report: Investment Banker & Securities Q2-2025
Industry Insight Report: Investment Banker & Securities Q2-2025
As we head into the second half of 2025, investor sentiment in the investment banking and securities sector is cautious at best. According to Charles Schwab’s Q2 sentiment survey, 57% of investors are bearish on the market, up sharply from 32% in Q1, driven by persistent market volatility and uncertainty in the political environment. Still, investor activity remains strong, with many planning to capitalize on market dips and increase exposure to individual equities.
Key Trends This Quarter
Bearish Sentiment, But Not Inactive Investors Despite heightened concern, particularly with the perceived 63% risk of a recession, investors are not staying on the sidelines. Over 60% plan to buy into dips, and nearly half are adding new capital to their portfolios. Energy and utilities are leading in bullish sentiment, while real estate and discretionary consumer sectors are facing pessimism.
Flat Employment, Rising Wages Employment in investment banking and securities intermediation firms remained largely unchanged year-over-year, with just a 0.3% increase in April. However, average hourly wages rose to $52.61, up 1.8% over the year. Over the past decade, wage growth in this sector (27.8%) has lagged behind the broader private sector, which saw nearly 49% growth.
Long-Term Outlook Remains Positive Despite near-term market jitters, the industry is expected to grow at a 6.58% compound annual rate through 2029, outpacing overall economic growth. This is a testament to the resilience and adaptability of the sector, especially as firms continue to navigate inflationary pressures and a politically charged climate.
Texas & Local Observations
Across Texas, we’ve seen continued buyer interest in boutique investment advisory firms, particularly those with niche client bases, RIA registrations, or recurring fee income. Many of these firms are exploring exit opportunities due to founder retirement or rising compliance burdens. The lower-to-middle market remains active, with a noticeable uptick in inquiries from private equity-backed roll-up groups seeking bolt-on acquisitions.
Outlook for Q3 2025
The remainder of the year will likely be shaped by continued volatility and shifting investor risk tolerance. As inflation fears persist and political uncertainty unfolds heading into the 2026 cycle, expect increased activity around portfolio repositioning, alternative investment allocations, and demand for advisory services. M&A appetite remains strong, especially for firms with sticky revenue and digital infrastructure.
Have a client who is considering selling? Have them take our free Sellability Score, and we will review the results together.
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Investment Banker & Securities Q2-2025
As we head into the second half of 2025, investor sentiment in the investment banking and securities sector is cautious at best. According to Charles Schwab’s Q2 sentiment survey, 57% of investors are bearish on the market, up sharply from 32% in Q1, driven by persistent market volatility and uncertainty in the political environment. Still, investor activity remains strong, with many planning to capitalize on market dips and increase exposure to individual equities.
Key Trends This Quarter
Bearish Sentiment, But Not Inactive Investors
Despite heightened concern, particularly with the perceived 63% risk of a recession, investors are not staying on the sidelines. Over 60% plan to buy into dips, and nearly half are adding new capital to their portfolios. Energy and utilities are leading in bullish sentiment, while real estate and discretionary consumer sectors are facing pessimism.
Flat Employment, Rising Wages
Employment in investment banking and securities intermediation firms remained largely unchanged year-over-year, with just a 0.3% increase in April. However, average hourly wages rose to $52.61, up 1.8% over the year. Over the past decade, wage growth in this sector (27.8%) has lagged behind the broader private sector, which saw nearly 49% growth.
Long-Term Outlook Remains Positive
Despite near-term market jitters, the industry is expected to grow at a 6.58% compound annual rate through 2029, outpacing overall economic growth. This is a testament to the resilience and adaptability of the sector, especially as firms continue to navigate inflationary pressures and a politically charged climate.
Texas & Local Observations
Across Texas, we’ve seen continued buyer interest in boutique investment advisory firms, particularly those with niche client bases, RIA registrations, or recurring fee income. Many of these firms are exploring exit opportunities due to founder retirement or rising compliance burdens. The lower-to-middle market remains active, with a noticeable uptick in inquiries from private equity-backed roll-up groups seeking bolt-on acquisitions.
Outlook for Q3 2025
The remainder of the year will likely be shaped by continued volatility and shifting investor risk tolerance. As inflation fears persist and political uncertainty unfolds heading into the 2026 cycle, expect increased activity around portfolio repositioning, alternative investment allocations, and demand for advisory services. M&A appetite remains strong, especially for firms with sticky revenue and digital infrastructure.
Have a client who is considering selling? Have them take our free Sellability Score, and we will review the results together.
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