Do you recall last year? There weren’t many deals, but the anticipation was palpable, leading to increased hiring, especially from figures like Andrew Bester, who heads ING’s wholesale banking sector.
Last August, Bester looked ahead and mentioned bringing on 100 new bankers to enhance services in branches beyond the Debt Capital Market (DCM). This was fueled by higher revenue from capital markets and advisory roles, culminating in the creation of a new capital market and advisory unit.
Now, almost a year later, Bester appears to have reconsidered. ING is set to cut 230 positions across its investment banking division, targeting managing directors and front office roles. It seems there are too many senior figures. The current market dynamics suggest that not every position is essential after all.
What exactly are these market conditions? Well, European M&A rates have dipped by about 5% year-on-year, while European ECM has seen a decline of 16%. Interestingly, this year, only the European DCM has remained stable, with revenues actually increasing. Though ING’s wholesale bank earnings remained steady year-on-year in Q1, rising costs—due to inflation and selective investments in front office growth—led to a nearly 13% drop in profits.
If ING believes it has an excess of senior staff, could other banks come to the same realization? Deutsche Bank had been considered top-heavy even before the recent surge in managing director hires. Firms like Jeffries, UBS, and others also have numerous senior positions.
ING isn’t alone in feeling this shift. Daiwa paused its hiring strategy last month, implementing a freeze. Similarly, rival Dutch bank ABN Amro has also enforced a hiring freeze since April. Yet, there’s still a demand for junior roles, likely because they come at a lower cost.
On another note, there’s a shift in how AI enthusiasts perceive technology—it’s not just lines of code anymore; it’s become more like an employee. BNY Mellon’s recently acquired digital employee can now send emails and collaborate with human staff on tasks like coding and payments. It’s an intriguing development.
Moreover, Derek Waldron from JPMorgan has also started referencing “digital employees.” This personification is ever more noticeable, especially where tech teams talk about mentoring these new “members.” But let’s be honest—they’re bots.
Meanwhile, TPG has stepped back from its 2027 recruitment for private equity. This follows moves by Apollo and others after Jamie Dimon mentioned firing a JPMorgan analyst who was already linked to a private equity position.
William Blair has welcomed Stewart Rikudy as its new European head, overseeing 125 investment bankers. He emphasizes a deliberate hiring approach to ensure they attract individuals who align with the company’s culture, particularly in technology, healthcare, and business services.
PWC is slashing prices on some consulting services as they find efficiencies through AI.
Millennium, Third Point, and 72 Points are all expressing interest in moving towards private credit.
Drew Guevara is back at Morgan Stanley as co-head of technology banking after serving as vice-chairman.
Henley & Partners project that 16,500 billionaires may leave the UK in 2025 alone. Over the past decade, tracking inflows and outflows of billionaires has revealed a profound net outflow from the UK.
In another note, Ken Griffin recently spent $13.7 million on a handwritten version of the 13th Amendment.
Mark Harris, who offered private equity roles at KKR, was recently charged with serious allegations.
If you have any insider information, tips, or thoughts to share, reach out via SMS or WhatsApp. Alternatively, you can fill out an anonymous form or send an email.
Also, if you decide to leave a comment below, please be patient. Our moderation process is handled by real people, which might lead to delays in comment visibility, unless it’s deemed inappropriate.
