LSEG Data Shows Australia’s Investment Banking Activity Rose Despite M&A Slowdown In 2025

Fee Growth Driven By Debt And Equity Activity While Outbound Deals Fall

Investment banks operating in Australia collected $3 billion in fees during 2025, up 9 per cent year-on-year, according to Q4 data from LSEG. This marks the highest annual fee total since 2022, with gains coming from debt and equity markets despite a slide in overall M&A deal values.

Barclays topped the fee tables with $188 million in earnings, representing 6.4 per cent of market share. ECM and syndicated lending were standout segments, while advisory revenue from completed M&A remained mostly flat.

M&A Activity Falls To Two-Year Low

The total value of M&A transactions involving Australian targets or bidders fell to $101.4 billion, down 9 per cent compared to 2024. This marks the lowest annual M&A total since 2023.

Domestic M&A was one of the few bright spots, rising 21 per cent to $38.6 billion in value despite a 10 per cent drop in deal count. In contrast, inbound M&A declined by 18 per cent to $40.3 billion, and outbound M&A dropped sharply by 39 per cent to $12.9 billion.

Goldman Sachs led the M&A advisory rankings with $26.2 billion in deal value across 28 transactions, capturing nearly 26 per cent of the announced market. Macquarie and UBS followed closely behind.

By sector, Materials remained the largest by value at $18.8 billion, but this was down 24 per cent. Real Estate rose 60 per cent to $16.3 billion, and Industrials almost doubled to $13.4 billion. High Technology deals fell 49 per cent to $12.6 billion.

Notable announced transactions included:

• Macquarie’s $7.8 billion acquisition of Qube Holdings
  
  
• Sembcorp’s $4.8 billion bid for Pioneer Sail Holdings
  
  
• A $3.7 billion investor takeover of National Storage REITaustralia-investment-banking-re…

ECM Raises Hit Four-Year High

Australia-domiciled equity and equity-linked issuance reached $23 billion, the highest since 2021. This was up 15 per cent from the previous year, driven by a rise in follow-on offerings and convertibles.

Convertible offerings surged to $4.9 billion, up 208 per cent year-on-year. IPO proceeds, however, declined 22 per cent to $1.6 billion, although the number of IPOs rose nearly 23 per cent — pointing to smaller raise sizes on average.

The Materials sector led ECM activity, accounting for 38 per cent of proceeds. High Technology and Real Estate followed.

JP Morgan led equity underwriting with $2.9 billion in proceeds across eight deals. Canaccord and Barclays took the next two spots, with Barclays lifting its ECM fee intake by 75 per cent.

Major ECM deals included:

• Goodman Group’s $2.5 billion follow-on
  
  
• IREN Ltd’s multiple convertible raises totalling over $3.5 billion
  
  
• Northern Star Resources’ $710 million issueaustralia-investment-banking-re…

Record Year For Bond Issuance

Debt capital markets activity reached $218.7 billion in 2025, a record high since tracking began in 1980. That figure represents a 12 per cent increase from 2024. The volume of new issues also rose 6 per cent, making 2025 the busiest year for Australian bonds since 2007.

Financials dominated issuance with $125.8 billion raised, followed by Government and Agencies with $56.9 billion. The Energy and Power sector contributed $9.98 billion, rising 63 per cent year-on-year.

Westpac was the top bond bookrunner with $23.3 billion in proceeds across 138 issues, followed by Commonwealth Bank and NAB.

Large bond deals included:

• Two Australian Government issues totalling $19.8 billion
  
  
• $4.25 billion from Commonwealth Bank of Australia
  
  
• Woodside Finance’s $3.48 billion raise.

Sector-Wide Variability In Performance

Sector performance across the year showed wide divergence.

Materials saw mixed outcomes, with a 56 per cent rise in ECM issuance but a 31 per cent decline in M&A activity. Real Estate performed well across the board, growing M&A, bond issuance and equity capital activity.

Technology faced challenges, with M&A value falling 62 per cent, though ECM issuance in the sector jumped 90 per cent.

Consumer Products and Services recorded a 309 per cent rise in ECM proceeds and more than doubled in DCM volume, while Telecommunications posted declines across most deal types.

Rankings Reshuffled Across League Tables

Barclays moved from 11th to 1st in the investment banking fee rankings after nearly doubling its wallet share. Goldman Sachs dropped to second while Macquarie rose to third. UBS and NAB both lost ground.

Jefferies posted the largest percentage gain in M&A league tables, rising from 21st to 9th and lifting deal value by over 450 per cent. In bonds, Credit Agricole and Deutsche Bank entered the top 10 bookrunners by proceeds.

Overall, the Australian investment banking landscape in 2025 reflected ongoing volatility in deal appetite, sector rotations and stronger competition in debt and equity markets despite headwinds in M&A.

Last Updated on January 7, 2026 by Nick Ross