By Paul Clarke
Of Financial News
UBS is looking to grow its European investment bank as part of a broader global push to gain market share in dealmaking, following its acquisition of its troubled rival Credit Suisse.
The Swiss bank is "selectively hiring" for its investment bank in Europe, its head of investment banking in the region and global co-head of M&A, Nestor Paz-Galindo told Financial News.
"We are growing, selectively hiring and gaining market share in key strategic areas as part of our accelerated strategy," said Paz-Galindo, who in July was promoted to lead UBS's global banking business in Europe, the Middle East and Africa.
UBS is looking to gain ground in leveraged finance, as well as M&A and financial sponsors, according to people familiar with the matter. It has also grown headcount within its ECM team by 25% through the Credit Suisse acquisition, FN reported in May.
Marc Warm, who previously led leveraged finance at Credit Suisse, was named global head of leveraged and debt capital markets on Nov. 14, replacing London-based David Slade, who moves to chair of global banking.
The Swiss bank has upped its ambitions in investment banking since the Credit Suisse deal, and is aiming for a top five league table position in Europe, the Middle East and Africa. It currently sits 11th, according to data provider Dealogic, and is in 15th spot in the leveraged loans rankings.
UBS has taken on around 1,400 bankers through its acquisition of Credit Suisse, with the ranks of senior dealmakers swelling by around 200 people globally.
Much of this expansion has been in the U.S., where executives have pointed to an unprecedented opportunity to gain share in the world's biggest investment banking market. In EMEA, its team has expanded by 30% as a result of taking on dealmakers from its former rival.
"We have a very stable business now and are using the increased resource from the Credit Suisse acquisition to improve our league table standing," said Paz-Galindo.
UBS has moved quickly to integrate its former rival, with dealmaking teams largely coming together at the beginning of 2024. The task is still likely to take years and will involve significant cost cuts.
Chief Executive Sergio Ermotti told an October conference that it was focused on reducing Credit Suisse's IT systems from 3,000 to 300, which has helped "achieve the cost synergies that we need to do in order to restore profitability."
The merger is also expected to result in thousands of job cuts, with Swiss press reports in April suggesting five waves of layoffs from June to November. However, there has been little evidence of significant job cuts in the investment banking team.
The shake-up of its investment banking team in Europe has largely led to senior roles being handed to existing UBS bankers rather than ex-Credit Suisse staff. Some have departed, with Fabien Antignac leaving its leveraged finance team to join Lazard as co-head of European debt advisory and capital solutions, while Stephen Pick departed for Barclays to co-head its EMEA M&A team.
Paz-Galindo said that after a period of change, the focus for UBS's investment bank in Europe is on growing market share.
"Credit Suisse had excellent bankers who faced a challenging two years," he said. "Now, with a stable platform they are generating more deals. We have the right mix of people and are gaining market share."
Financial News is owned by News Corp, the parent company of The Wall Street Journal and Dow Jones Newswires.
Write to Paul Clarke at paul.clarke@dowjones.com
Website: www.fnlondon.com
(END) Dow Jones Newswires
November 18, 2024 10:26 ET (15:26 GMT)
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