In order to expand and better serve private equity clients, investment banks are scooping up other middle-market investment banks. 2013 has played host to several deals, and in June alone, three acquisitions were announced. Minneapolis-based investment bank Piper Jaffray Cos. (NYSE: PJC) grabbed a fellow middle-market firm, Edgeview Partners LLP. Edgeview, headquartered in Charlotte, N.C., provides M&A advisory services.

Edgeview's sector expertise, including industrials and defense, was one of the reasons Piper Jaffray picked it up. The firm was looking to expand its industrials M&A business, says Scott LaRue, co-head of investment banking at Piper Jaffray. "The private equity community is a place that could support additional resources focused on sponsor exits and sponsor monetization," LaRue says.

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