Chemicals investment banking

Hi guys,

I am interested in learning about the chemicals investment banking world. It seems that banks with chemicals groups are very lean and that outside of the large banks/established MM, there doesnt seem to be much competition. Would anyone know of any botiques or regional players in the US. that are reputable in the chemicals space? Thanks

Chemical Investment Banking

The chemical business is capital intensive so there’s always a need for capital raising. Its also an industry that undergoes consolidation regularly (M&A opportunities). Depending on the firm the Chemical group may be in within a larger industrials group or natural resources.

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The best chemical groups according to Bloomberg are: - Goldman Sachs - Morgan Stanley - Citigroup - Credit Suisse.

I certainly wouldn't have thought that CS, UBS and DB would be classed as Tier 2 banks...the exit opportunities from UBS and CS would be excellent, less so for Deutsche.

I don't think you'd have a problem switching laterally to another sector, but going to PE or Hedgie would be a bit harder.

However, as long as you know the fundamentals and can model LBO's till your eyes fall out, you shouldn't have a problem with any PE shop.

 

UBS LA and Deutsche's leveraged finance team are some of the primary feeders into PE shops - so definately NOT tier 2.

Agree with the 5 banks' chemicals teams named earlier.

 
ChemicalBank:
what makes you want to get into chemicals? It's a neat sector, but extremely cyclical. We just finished a rough patch with LyondellBasel and Huntsman's near death.

You are seriously misinformed. Huntsman was never "near death," the buyout contract by Apollo, using obscene amounts of leverage, fell apart a couple years ago because Apollo had buyers remorse when the credit crisis occurred and then dishonorably pulled out of the deal. Apollo claimed that the combined company would be insolvent...but huntsman alone was not in financial trouble. Right now Huntsman is very solid btw.

I am not a chemical or industrials banker lol.

 

From CS website:

Chemicals Group The Chemicals Group is the #1 chemical franchise on Wall Street, having been involved in 25 of the last 28 chemical equity transactions, approximately 50% of high yield offerings in the last two years, and more than 90 M&A transactions with combined value in excess of $125 billion since 1996. The Group has professionals in New York and London. The chemical sector investment banking market remains strong and is expected to grow, driven by:

Significant increase in M&A activity by both financial sponsors as well as companies seeking to optimize their portfolios
Strong equity issuance with expected follow-on offerings by recently listed companies Leveraged loans and high yield debt required by clients that seek capital to grow organically and through acquisitions

 

Take that stuff with a grain of salt. It's the CS website after all; sounds like standard, propaganda-laden, pitch material. Every group at every bank will tell you they're #1 according to this, that, or the other.

I've heard Citi has a top flight Chems group, and obviously it stands to reason that GS (Natural Resources Group) and MS(?) would be up there. Any Chems bankers on the board to verify this?

 

Don't hijack my thread buddy; in case you didn't notice, it's about Chemicals groups. There are multiple threads, even over the past few weeks, discussing Healthcare groups. Run a search just like everyone else does.

 

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