Do sponsors groups help deal flow for a bank as a whole??
Just saw that wells picked up Malcolm Price the head of FSG at CS. How much of a positive impact would this have for other coverage groups at Wells? Would this help their strong teams like FIG and REGAL with more of the PE side of things?
Bump
FSG always ends up on the wrong side of jokes, but if (and only if - a lot of FSG bankers are simply not good) the teams are super helpful. I sit in an industry coverage team, and I'd say that a couple of ways (and this isn't exhaustive) they add value is (A) just maintaining those relationships; taking private equity folks for coffees and dinners and providing insight on where they are with portfolio companies; what they're looking at; what they thought of such-and-such asset; setting up meetings, and (B) having good insight into potential buyers for an asset (useful when we're pitching for a sellside and want to give real insight into the key buyers, and useful on a buyside pitch to comment on competitors).
The best teams will have organised notes on who owns what, duration of ownership, cap structure considerations, etc., and be on top of pre-empting which assets will come up for sale or might need a refi.
In this particular case, a key hire might bring strong relationships with the key decision-makers at various sponsors, enabling CS to get a foot in the door at upcoming beauty parades and such.
The reverse can also be true - useless and disorganised teams exist without any content or relationships and where the industry bankers need to pick up the slack by maintaining those relationships themselves, but to answer your question, I'd say a strong sponsors group can absolutely help deal flow.
Yes, in my experience, as it keeps the firm better in the loop for financings and exits. However, I am curious how people think the growth in private credit and increasing prevalence of dedicated capital markets groups at large funds has impacted the role of FSG?
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