The Major Players In The Singapore Investment Banking (read:Corporate Finance) Industry

Definitions

• 1. Product Portfolio - Investment Banking here refers to mainly mergers & acquistions (M&A) and financing (debt & equity) transactions.
  
  
• 2. Geographical Scope - i) The player (financial adviser) is based in Singapore; or ii) At least one company involved in the transaction is based in Singapore.
  

Categories of Players (Advising on Corporate Finance)

• 1. Investment Banks: Bear Stearns, Cazenove, Citi, Deutsche, Goldman Sachs, Jefferies, J.P. Morgan, Lazard, Lehman Brothers, Macquarie, Merrill Lynch, Morgan Stanley, UBS etc
  
  Most of the banks listed here are bulge bracket players - that compete for the largest deals, involving the largest companies in the Fortune 500. There are exceptions like Jefferies, which positions itself as a middle market investment bank. Non-bulge bracket players are often referred to as middle market players.
  
  Corporate Finance M&A teams are small (6-12 people per bank inclusive of MD, VP, associates, analysts).
  
  
• 2. Local Banks: CIMB GK (Malaysia), DBS etc
  
  Although their work in the corporate and consumer banking space is more visible to the main in the street, both banks listed here have substantial deal flow (number of transactions). For example, DBS has a M&A group, a Equity Capital Markets Group and Debt Capital Makets Group separately. This is considered unsual as most middle market players tned to pool their limited human resources (small team) together to handle both M&A and financing transactions.
  
  
• 3. Big 4 Corporate Finance: Deloitte & Touche, Ernst & Young, KPMG, Pricewaterhouse Coopers etc
  
  While most people still see the Big 4 as accounting firms, a big 4 accounting firm is usually organised alone lines of audit, tax and advisory (including corporate finance). Recently, Deloitte & Touche Corporate Finance and KPMG Corporate Finance have been ranked among the 2008 Top 50 Most Prestigious Banking Employers (30th and 43th respectively) for the first time, bearing testimony to the wider acceptance and recognition of their work.
  
  
• 4. Boutiques: DMG & Partners, Kim Eng Capital, NTan Corporate Advisory, Omega Capital, Primepartners Corporate Finance, SAC Capital etc
  
  The Boutiques usually compete in the Middle Market (transaction values USD 100M ) and are headed by former bulge bracket I-bankers. Boutiques typically have narrower product lines and industry coverage than bulge bracket peers.
  

Food for Thought

• 1. Blurring of the Lines between Middle Market and the Bulge Bracket I-Banks
  
  With the saturation of transaction activity at the top tier, more bulge bracket investment banks are getting involved in mid market transactions, as evidenced by their ranking in Thomson Mid-Market M&A League Tables. Citi and UBS have topped the mid-market rankings worldwide this year.
  On the other hand, some middle market players do possess ambitions of challenging the big boys, but success has been limited.
  


• 2. M&A Waves - The Trough
  
  M&A activity is closely linked to the economy. With the slowing of the economy expected in 2008, I-banking players are preparing themself for the inevitable meltdown by beefing up their distressed debt teams and restructuring divisions.
  
  
• 3. The Gap and The Foot in the Door
  
  The gap in compensation and prestige between the bulge bracket I-banks and the rest have resulted in a revolving door and high employee turnover at the boutiques.