What is the primary function of an Equity Capital Markets (ECM) team?

The primary function of an Equity Capital Markets (ECM) team is to assist companies in executing transactions in primary markets. This encompasses activities such as initial public offerings (IPOs), follow-on equity offerings, and other equity-related transactions where a company raises capital by issuing new shares. The ECM team primarily liaises between the issuing company and investors, ensuring that the company’s needs are met in terms of capital raising while also appealing to investor demand.

The ECM team's role involves extensive market research, pricing of the securities, structuring transactions, and executing sales to institutional and retail investors. Therefore, this function is crucial for companies looking to access new capital and grow in a competitive marketplace.

In contrast, supporting public relations, providing consulting services for private equity, and managing mergers and acquisitions fall outside the core responsibilities of ECM teams. These activities may involve different departments within a financial institution or may be handled by specialized firms in those areas. Thus, option B accurately captures the essential purpose of an ECM team in the context of capital raising.