Closing Dinners Might be the Best Part of Investment Banking

Investment banks host closing dinners for clients and the bank’s own deal team following a successful transaction. These celebratory dinners are usually swanky affairs in private dining rooms, or can even be trips such as a skiing or yachting adventure.

Slap on your deal sleds and dig out the Hermès tie, it’s time to talk about the best, most over-the-top part of any investment banking job.

Closing Dinners Overview

At some point after transaction close, the sell-side investment bankers will begin preparation for the closing dinner. Typically the admin team will handle actual logistics, while the senior bankers will make critical decisions such as restaurant and activity choice (if any).

Occasionally, the bankers will consult the client. For example, perhaps the MD was business school buddies with the CEO who just completed the acquisition. They’re both big ski bums, so they decide on a weekend closing dinner ski trip in Aspen.

More frequently, bankers will simply find a private dining room at the nicest restaurant possible. Something like Le Bernardin, Nobu, Gramcery Tavern, Benu, Quince, or any number of different steakhouses.

Given it’s a celebratory event, and potentially culmination of life-changing transaction for the client, closing dinners tend to be high-energy and raucous. With certain groups, these events can be an incredible amount of fun.

Beyond dinners or skiing, bankers have been known to line up outings to F1 races, NFL games, nights out in Macau or Vegas, trips to the French Riviera, or a Caribbean beach.

Why Do Closing Dinners Exist?

Closing dinners came into existence for two primary reasons.

First, it’s a great sales tactic. Ending a long and arduous deal process with a night to remember for the client provides a critical bonding event and increases the chances of repeat mandates for the bank and banker.

It’s a similar to deal toys – commemorate the occasion and create a positive association with the investment bank.

Second, it can be a lot of fun. Who doesn’t love a Michelin-starred meal with far too much wine on someone else’s dime?

But Who Gets to Go?

With closing dinners, it’s unfortunately not guaranteed that the analyst on the deal team will get to go. You’re really at the mercy of the MD or partner.

Given the analyst likely did the most work, it’s almost criminal not to let them tag along. But, can’t win them all.

Typically every core deal team member at the investment bank associate on up will go. If groups are cross-staffed (across product / coverage or geographies), attendance may become more exclusive simply based on maximum headcount allowed by the venue and budget.

On the client side, typically the full C-suite will attend, as well as and any other heavy contributors (SVP that was very involved in the transaction or members of the corporate development team, for instance).