Private Equity Deals Are Creating a Record Year for Investment Bankers


September 5, 2013

Investment banks have made more than USD 10.2 billion from private equity transactions so far this year (to August 28th), according to dealogic data, as reported by efinancialnews.


It is the highest level since the same period in 2007 when revenue was USD 13.4 billion, mainly due to the US PE market, says efinancialnews. That means that 2013 could end up being “one of the most profitable for investment banks working on private equity deals” if the rest of the year has a similar level of activity. (Image Source: WSJ)


Other findings

– The highest full-year figure was also recorded in 2007 at USD 17.7 billion. Fee income this year to date is up 36% on the same period in 2012.

– Private equity deal income has increased 47% in Europe compared to the same period last year, to USD 2.3 billion. There was a 34% increase in the Americas, to USD 7.4 billion, and 18% increase in Asia Pacific, to USD 500 million. (Revenue by location is based on where the fee payer is located, says efinancialnews).

– JP Morgan reaped the highest amount of income from these deals, followed by Goldman Sachs, and Credit Suisse.

– Fees have been driven by high levels of activity from some of the largest buyout firms in the US. Apollo Global Management is ranked first by fees paid, Carlyle Group second and Bain Capital third. CVC Capital Partners, is the only European firm on the list, after a flurry of deal activity so far in 2013.

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