US Investment Banking Moves H1 2012 - Sheffield Haworth

Senior Investment Banking Moves inAmericaJanuary – June 2012

2012 – H1 in ReviewThe Sheffield Haworth Americas IBD Movers Report captures MD-level hires made by investmentbanking firms in the Americas across IBD Coverage, M&A, Capital Markets Origination andStructured Finance in the region. A selection of moves and internal promotions made in the first 6months of 2012 is reported, person by person, in the tables below. The data laid out in the graphics,by comparison, reflects the entirety of the external moves known to us. While reports of this naturecan never be made 100% complete in a timely manner, the overall trends stand out clearly.2012 – H1 in Review• 2012 ushered in rounds of redundancies and a compensation cycle that left most disappointed. Thedeterioration of market conditions seen in the latter half of 2011 continued, with the Eurozone crisisintensifying, banks facing further pressure from the media and 2012 fees down again year on year. Giventhese issues it is no surprise that hiring at investment banks dropped dramatically in comparison to the firsthalf of last year. Our data suggest that MD-level hiring is down 52% year on year. Senior hires have been, forthe most part, restricted to critical replacement hires rather than growth. As a result, bankers who werefrustrated by last year’s compensation round had few options to choose from when considering alternatives.• A higher proportion of unvested compensation remains an obstruction to hiring, particularly for firms ingrowth mode, and is likely a major reason why the market has not seen its share of opportunistic additions.2

2012 – H1 in ReviewMD+ Movers by Month; Americas201020112012706050403020100Jan Feb March April May June July Aug Sep Oct Nov Dec3

2012 – H1 in ReviewFurther analysisYear to date, Tier-1 hiring is down 49% in comparison to H1 2011. The decline is just as sharp at the Tier-2 firms,down 45%, and at Tier-3 institutions, down 63%.Tier 1 Banks Tier 2 Banks Tier 3 BanksYear # % of Total # % of Total # % of Total2010 184 45.8% 101 25.1% 117 29.1%2011 140 35.7% 95 24.2% 157 40.1%YTD 2012 45 41.3% 30 27.5% 34 31.2%The most active sector so far this year is Energy and Power, driven by hiring by BAML and Wells Fargo. With 19MD hires to date, this is the only sector that is on pace to match last year’s total. In contrast, the TMT, FinancialInstitutions and Healthcare sectors have seen a very significant drop off in hiring after high levels of movementin 2010 and 2011.4

2012 – H1 in ReviewMD+ Moves by Sector504540353937484035483745463630252015105027262019192019171617151112111111125 56345630M&A CR EP FIG FS GIG HC REGAL TMT ECM DCM LFHY2010 2011 YTD 20125

2012 – H1 in ReviewBank-by-Bank Developments• Below we have laid out ‘gains’ and involuntary ‘losses’ data for the first 6 months of 2012 for leading fullservicefirms. These two sets of graphics reveal some interesting developments:• The most active hirer this year, Wells Fargo, has continued its recruitment spending from 2011 when itbolstered its M&A bench and acquired several bankers from Citadel Securities.• Credit Suisse has led in terms of losses, with 10 in total and many of those in Energy & Power. This may partlybe in consequence of 2011’s compensation - down sharply and with an unattractive mix of deferred - whichproved demotivating internally.• BAML added in Energy & Power in particular, but also suffered a high number of losses.• Goldman Sachs saw more Partners depart, a continued trend from last year (not accounted for in the graphbelow as they remain Out of Market).• UBS continues to suffer MD losses at a higher rate than gains, recently including Aryeh Bourkoff (Head,Americas IBD) Ehren Stenzler (Co-Head, M&A).• BMO, Jefferies, RBC and Nomura active hirers in 2010-2011 were much quieter in relation to their aggressivegrowth in that 2-year period.• In several cases, although not shown above, leading M&A boutiques have matched full-service firms’ hiringyear to date, even in the context of much smaller starting platforms.• Centerview, Evercore, Houlihan Lokey, Lazard and Perella Weinberg have all hired more than 3 bankers in thefirst 6 months.6

2012 – H1 in ReviewMD+ Gains by Bank; YTD 6/30/12MD+ Losses by Bank; YTD 6/30/12WF, 8BAML, 5UBS, 8WF, 0BAML, 8UBS, 4RBC, 2BC, 3BC, 4Nom., 1BMO, 0Citi, 2RBC, 4BMO, 2MS, 6Citi, 1Nom., 4MS, 3JPM, 1Jeff., 1GS, 1DB, 5CS, 2JPM, 6Jeff., 0GS, 1DB, 5CS, 107

ContactsGilbert SwannLondonWilliam BownLondonJulian BellNew YorkJames CherubimNew YorkSimon RobertsHong KongEllie PilgrimHong KongJules OrpinSydneyMichael Di CiccoSingaporeAlex CormackDubai & LondonTelephone: +44 (20) 7213 0764Email: swann@sheffieldhaworth.comTelephone: +44 (20) 7213 0791Email: bown@sheffieldhaworth.comTelephone: +1 212 593 7119Email: bell@sheffieldhaworth.comTelephone: +1 212 593 7119Email: cherubim@sheffieldhaworth.comTelephone: +85 231 850 508Email: roberts@sheffieldhaworth.comTelephone: +85 231 850 500Email: pilgrim@sheffieldhaworth.comTelephone: +61 2 8212 5577Email: orpin@sheffieldhaworth.comTelephone: +65 6557 4326Email: dicicco@sheffieldhaworth.comTelephone: +971 507 884250Email: cormack@sheffieldhaworth.com8

The information contained in this document has been compiled by Sheffield Haworth from sources believed to be reliable and in good faith,but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. This document does notconstitute or form part of, and should not be construed as advice. Sheffield Haworth accepts no liability whatsoever from any consequentialloss or damage arising from any use of this document or its contents. This document may not be reproduced, redistributed or passed on toany other person or published, in whole or in part, for any purpose, without the prior, written consent of Sheffield Haworth.