The role of deal origination teams in investment banking advisory

Deal origination teams generate pipelines through relationships and research.

In investment banking, deal origination refers to the process of identifying, sourcing, and initiating potential transactions for clients. While much attention is given to execution teams, origination functions are crucial for sustaining a steady deal flow. These teams work across sectors and geographies to uncover sell-side mandates, buy-side targets, capital raise opportunities, or strategic partnerships before they come to market.

Origination teams are structured to balance coverage and specialization.

Deal origination is typically handled by bankers within coverage groups—organized by industry (e.g., healthcare, TMT, industrials) or region (e.g., EMEA, APAC). Within these groups, team roles often include:

• Managing Directors (MDs): Lead senior relationships and high-level outreach

• Vice Presidents (VPs): Coordinate initial screening, pitch ideation, and client meetings

• Associates and Analysts: Conduct research on targets, ownership structures, and recent financials

Origination teams often work in parallel with product specialists (e.g., M&A, ECM, DCM) who step in after a live mandate is secured.

Relationship management is the foundation of origination success.

A major responsibility of origination teams is maintaining regular contact with:

• Corporate executives and board members

• Private equity sponsors and family offices

• Sovereign wealth funds and institutional investors

This involves proactive calling, attending conferences, distributing market updates, and sharing proprietary insight to position the bank as a trusted advisor—even before a formal process begins.

Banks maintain relationship management systems (RMS) to track client interactions and potential deal triggers across sectors.

Idea generation is supported by internal analytics and sector views.

Successful origination is driven by insightful, tailored deal ideas. Origination teams rely on:

• Proprietary market screens to identify underperforming or high-growth targets

• Valuation dashboards using sector multiples and trading comps

• Industry consolidation maps showing potential acquirers and targets

• Ownership structure databases to detect transition scenarios (e.g., succession, PE exit)

These inputs are synthesized into "reverse pitches"—presenting ideas to clients rather than waiting for mandates.

Origination integrates intelligence from across the bank.

Origination teams liaise with internal groups such as:

Internal Team	Contribution to Origination
Equity research	Thematic insights, earnings trends, sentiment
Debt capital markets (DCM)	Credit appetite, yield curve trends
Equity capital markets (ECM)	IPO pipeline, appetite for secondary placements
Trading & sales	Investor behavior, institutional demand
Syndicate desk	Distribution capacity and deal timing recommendations

This multi-channel intelligence helps shape outreach with precision.

Early-stage conversations must balance insight and confidentiality.

Origination bankers often walk a fine line: presenting tailored ideas without breaching confidentiality or appearing overly aggressive. This requires:

• Deep industry knowledge

• Sensitivity to internal corporate dynamics

• Experience in timing outreach relative to earnings cycles, regulatory events, or M&A windows

Well-timed outreach can lead to exclusive mandates or early positioning in a competitive process.

Metrics and incentives for origination differ from execution roles.

While execution bankers are measured by closed transactions, origination success is tracked by:

• Number of pitches delivered

• Quality and conversion rate of ideas

• Relationship coverage and senior client access

• Mandates sourced from cold or competitive leads

Incentive structures often include revenue attribution models that credit origination teams when sourced deals go live and close, even if other teams execute the transaction.

Deal origination is a long-cycle, relationship-driven process.

Unlike execution work with defined timelines, origination is iterative and can take months or years to yield a mandate. It demands a balance of persistence, research depth, sector knowledge, and intuition about corporate priorities.

Strong origination capabilities give investment banks a pipeline advantage, allowing them to shape markets, not just react to them.

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