Goldman Sachs beats JPMorgan to become UK’s top dealmaker for 2022

Daniel Mitchell
June 14, 2023
7:55 am

Goldman was able to reclaim the top spot thanks to its position as the industry’s leading M&A advisor as the number of companies raising money on UK stock exchanges fell.

Due to a 42% decline in revenue in the largest investment banking market in Europe, Goldman Sachs has surpassed JPMorgan in the UK dealmaking fee tables.

According to data provider Dealogic, the two Wall Street banks have been competing for the top spot in the City for the past ten years, but Goldman Sachs emerged victorious in 2022 with a 9.5% share of the UK fee pool as capital markets activity dropped off the previous year.

According to the data, Goldman made $368 million in the UK last year, down from $640 million in 2021. According to Dealogic, JPMorgan’s fees decreased from $705 million to $275 million in 2022.

The largest fee pool in Europe, the Middle East, and Africa is typically the UK investment banking fee pool. Its dominance has declined, even though it was still the most lucrative market for dealmakers in 2022. According to Dealogic, it generated $3.8 billion in deal fees last year, down from $6.7 billion the year before. This was the region’s steepest decline in deal fees. Deals in France brought in $2.8 billion for banks last year.

Companies raising capital on UK stock exchanges fell by 90% last year, which has helped Goldman regain the top spot thanks to its position as the top M&A advisor. According to Dealogic, M&A fees made up 67% of UK investment banking revenue last year ($2.6 billion), up from 49% in 2021.

According to KPMG research, the amount of money raised by companies that list in London decreased from £14.3 billion in 2021 to £1 billion last year.

In recent months, JPMorgan has reorganised the senior ranks of its UK investment bank. After bringing in former Linklaters senior partner Charlie Jacobs to lead its UK dealmaking team in 2021, veteran Deutsche Bank dealmaker Richard Sheppard joined in October as co-head of the unit, Financial News reported.

As part of a larger restructuring of its dealmaking division, Goldman appointed Richard Cormack and Nimesh Khiroya as co-heads of UK investment banking in November 2020.

JPMorgan kept its top spot in Emea in 2022 after earning $1.6 billion the previous year, according to Dealogic. Goldman and Bank of America replaced Citigroup, which dropped to fifth place in the rankings, as the second and third places, respectively. Morgan Stanley remained in position four.

To get in contact with feedback on this article please email us at publishing@krugmaninsights.com