IB Coverage Groups Explained: How to Choose & What to Expect

Investment banks are organised into coverage groups (sector teams) and product groups (deal-type teams). Understanding the difference, knowing what each group does, and having a thoughtful answer for 'why this group?' is essential for interviews. This guide covers all the major groups.

Coverage vs Product Groups

Coverage Groups (Industry Groups): Organised by sector. TMT, Healthcare, FIG, Industrials, Consumer & Retail, Energy, Real Estate. They own the client relationship and originate deals. When a tech company wants to do an M&A deal, the TMT team leads.

Product Groups: Organised by deal type. M&A advisory, ECM, DCM, Leveraged Finance, Restructuring. They provide technical execution expertise. When the TMT team wins an M&A mandate, the M&A product group supports the execution.

In practice, there's significant overlap. At some banks, coverage groups handle both origination and execution. At others, the split is clean.

Major Coverage Groups

TMT (Technology, Media & Telecommunications)

One of the highest-profile and busiest groups. Covers everything from software and semiconductors to streaming and telecoms. Deal flow is consistently strong. Valuations tend to be higher (revenue-based multiples common for growth companies). Strong exit opportunities into tech-focused PE and growth equity.

FIG (Financial Institutions Group)

Covers banks, insurance companies, asset managers, fintech, and specialty finance. Unique because financial institutions have different financial statements (no EBITDA) and are heavily regulated. FIG bankers need to understand regulatory capital, capital ratios, and book value-based valuation. Excellent for those interested in financial services.

Healthcare

Covers pharmaceuticals, biotech, med-tech, healthcare services, and life sciences. Highly active M&A sector due to consolidation, patent cliffs, and R&D pipelines. Valuation can include pipeline analysis for drug-stage companies. Strong exit into healthcare PE and pharma corporate development.

Industrials & Infrastructure

Covers manufacturing, aerospace & defence, transportation, construction, and infrastructure. More traditional, cash-flow-focused businesses. Valuation is typically EV/EBITDA-based. Good for those who prefer tangible, asset-heavy businesses.

Consumer & Retail

Covers food & beverage, luxury goods, e-commerce, restaurants, and retail chains. Brand-driven valuations. Active M&A with PE involvement (consumer is a favourite PE sector). Seasonality and consumer trends play a big role.

Energy & Natural Resources

Covers oil & gas (upstream, midstream, downstream), mining, utilities, and renewables. Highly cyclical, tied to commodity prices. Unique valuation methods (NAV for resource companies, reserve-based analysis). Energy transition is driving significant deal activity.

Real Estate

Covers REITs, property developers, real estate PE, and hospitality. NAV-based valuation, cap rates, FFO/AFFO multiples. Distinct from other coverage groups because of asset-heavy, income-focused business models.

How to Choose a Group

Genuine interest: If you're passionate about tech, TMT makes sense. Bankers spend all day reading about their sector – genuine interest makes the work more enjoyable and makes you more effective.

Exit opportunities: TMT and Healthcare tend to have the most PE/HF exits. FIG is more specialised. Energy exits tend to be within energy-focused funds.

Deal flow: TMT and Healthcare consistently have the highest M&A volumes. Industrials and Consumer are cyclical.

Lifestyle: Some groups are busier than others. Lev Fin and M&A product groups are notoriously intense. DCM tends to have more predictable hours.

How to Answer 'Why This Group?'

Give 2–3 specific reasons that are unique to the group. Reference personal interest, relevant experience, or conversations you've had with people in the group. Mention a recent deal the group has worked on. Never say 'because it has good exit opps' – that tells the interviewer you're already planning to leave.