Top investment banks revealed in horror first half

afr.com:

Investment bankers’ fees slumped 50 per cent in the first half of the year, marking their worst six-month year-on-year showing in five years, but a series of non-deal roadshows for initial public offerings provide a sliver of hope bigger paydays are on the horizon.

The absence of IPOs and a 60 per cent fall in fees from completed mergers and acquisitions were the most noticeable factors across investment banks, which have axed hundreds of jobs at offices around the world.

Companies weighing ASX listings remained wary of uncertainty around monetary policy, while the threat of an economic slowdown continues to make it difficult to value businesses.

Matthew Beggs, UBS’ head of equity capital markets, and executive director Veronica Kaufman’s team led six of the 10 biggest deals this year. Michael Quelch

UBS, Macquarie and Goldman Sachs dominated fee pools, but Barrenjoey Partners continued to chip away at the big three’s market share in equity capital markets (ECM) and mergers and acquisitions advisory work this half, new data from Dealogic showed.

Australia’s equity capital markets raised $US7.2 billion ($11 billion) in the first half, which was actually 13 per cent more than last year, as listed companies tapped investors for funds to support acquisitions.

New Zealand-based Ryman Healthcare’s $824 million equity recapitalisation in February was the largest transaction to date in 2023, followed by an $800 million raise by Star Entertainment in March and a $774 million placement for infrastructure investor Infratil in June, the Dealogic data revealed.

The spike in deal volumes, however, could not rescue the dip in ECM fees, which fell 16 per cent to $US192 million this half, partially because of no IPOs, which pay bankers