Global IB Fees Flat; Strongest Year for Europe IB Fees since 2011; JP Morgan Takes Top Spot; Fees from ECM Up 19%; DCM Fees Down 18%
Global Investment Banking Fees Total US$20.7 billion; Strongest Year for Europe IB Fees in Three Years
Fees for global Investment Banking services, from M&A advisory to capital markets underwriting, totaled US$20.7 billion during the first quarter of 2014, a 0.2% decrease over last year at this time and the slowest annual start for fees since 2012 (US$18.9 billion). Fees in the Americas totaled US$11.4 billion, a 4% decrease from 2013 while fees in Europe increased 11% and Japan fees increased 2%. Fees in Asia Pacific decreased 3% compared to a year ago, while fees in Africa/Middle East fell 20% compared to 2013 levels.
JP Morgan Takes Top Spot for Global Investment Banking Fees; Four Firms Within Top 10 Pick Up 2.8 Wallet Share Points
JP Morgan topped the global investment banking league table during the first quarter of 2014 with US$1.6 billion in fees, or 7.8% of overall wallet-share. Goldman Sachs booked US$1.5 billion in investment banking fees during the first quarter of 2014 for second place and an increase of 1.0 wallet-share point. While the composition of the top ten investment banks remained nearly unchanged during the first quarter, nine of those firms have changed rank position this year. Collectively, the top ten investment banks picked up 0.9 wallet- share points compared to last year, driven by Goldman Sachs, Credit Suisse, JP Morgan and Deutsche Bank.
Financials, Energy & Power and Industrials Account for 52% of Global Investment Banking Fee Pool
Investment banking activity in the financials, energy & power and industrials sectors accounted for 52% of the global fee pool during the first quarter of 2014. Goldman Sachs topped the fee rankings in five sectors during the quarter, with double-digit wallet-share in the consumer products and telecommunications sectors. JP Morgan registered an industry-leading position in four industry categories, including 14.2% wallet-share in the retail sector. Fees from deal making in the healthcare, retail and consumer products sectors saw strong percentage gains compared to the first quarter of 2013.
Debt Capital Markets Fees Fall 18%; IPOs Push Equity Capital Markets Fees Up 19%; M&A Fees Up 5%
Fees from debt capital markets underwriting totaled US$5.6 billion, down 18% compared to last year's tally and accounted for 27% of overall IB fees during the first quarter of 2014, down from 33% a year ago. Driven by a 49% increase in fees from IPOs, equity capital markets underwriting fees totaled US$5.2 billion during the first quarter, up 19% from a year ago. M&A advisory fees totaled US$4.8 billion during first quarter 2014, an increase of 5% over the same period last year, and accounted for 23% of the global fee pool, while fees from syndicated loans increased 2% compared to first quarter 2013.
Financial Sponsor-related Fees Up 19% from 2013; Apollo Global Management Tops Financial Sponsor Rankings
Investment banking fees generated by financial sponsors and their portfolio companies reached $3.4 billion during the first quarter of 2014, an increase of 19% compared to 2013. Fees generated from leveraged buyouts accounted for 28% of financial sponsor-related fees during the quarter, while ECM exits accounted for 26% and M&A exits comprised 12% of overall fees. Apollo Global Management and related entities generated $206 million in investment banking fees this year, more than double levels seen during the first quarter of 2013, while Goldman Sachs collected an industry-leading 8.8% of financial sponsor-related fees during the first quarter.