Ernst & Young Enters Investment Banking

Accounting firm Ernst & Young stepped into the investment banking arena with a new corporate finance unit, but stopped short of taking aim at Wall Street’s biggest names.

The firm said that the unit, which will be called Ernst & Young Corporate Finance, will focus on advising on merger deals worth $50 million to $1 billion, rather than on the multibillion-dollar deals handled by companies such as Goldman Sachs Group Inc. and Morgan Stanley.

The number of firms specializing in smaller deals has shrunk because of consolidation in the securities industry.