Munich's mountains and tech tempt big banks from Frankfurt

investing.com:

By Alexander Hübner and Emma-Victoria Farr

MUNICH (Reuters) — Munich is starting to steal some of German financial hub Frankfurt's limelight as foreign banks flock to the southern city, which on a clear day has views of the Bavarian Alps.

The appeal lies in Munich's high proportion of DAX companies and tech start-ups, large insurers and financial investors, while the nearby mountains add to its allure.

Firms such as Goldman Sachs and Morgan Stanley have been drawn by big German companies such as Siemens, Allianz (ETR:ALVG) and BMW (ETR:BMWG) being based around Munich, while their bankers also value the quality of life on offer.

«Many decision-makers work and live here, it's a city where you can live well,» said Dietrich Becker, head of Europe and partner at Perella Weinberg, adding that Munich had the highest concentration of clients in Germany.

The U.S. investment banking boutique was a pioneer in choosing Munich for its German base, opening its office in 2020.

«In London and Paris there is a high concentration of companies and decision-makers, in Germany that is more spread out, people are constantly on the move,» Becker told Reuters.

Along with big established industrial and financial names, EQT (ST:EQTAB) and General Atlantic are among the largest technology investors present in Munich.

And there are also aspiring German software companies and many European subsidiaries of U.S. technology firms.

Next month, Goldman Sachs will be the first of the major investment banks to establish a presence in the Bavarian state capital when it opens a Munich office.

This will be Goldman's second office in Germany after Frankfurt, where it has around 400 bankers, with its Wall Street rival Morgan Stanley set to follow suit in the