Is ECM a dying business (especially in EMEA)?
Curious to hear the views of more senior ECM professionals on this. Especially in EMEA, fees for ECM deals have really decreased. In particular, blocks don't seem worthwhile anymore and are often just no-fee events.
Aside from boom years (like 2021), it seems that ECM fees are reaching a normalized floor that is quite low. This has led to increasing pressure from seniors to chase deals, despite most of them not paying very well. It also appears to have resulted in pressure from seniors to run teams in a more lean fashion (with fewer resources given the lower fees). However, with leaner teams and increasing pressure to win deals, it seems like it'll be a tough business in the future, with the quality of life suffering and too little revenue coming in.
Thoughts?
Wish I could be more helpful, but I work at a European balance sheet based in the US, so not a top domestic ECM player, but I see the fees we generate across all product classes, including ECM. Seeing we won a share buyback mandate but are only getting paid 5-10k depending on size, is astounding to me. Honestly had to do double take on some occasions.
Ullam quaerat dolorum nesciunt officia veniam possimus. Voluptatem doloribus pariatur adipisci suscipit eum. Alias a hic eum iste quae. Dolor ex eos magnam a.
Quod rerum omnis dolores. Labore dolore asperiores pariatur eum aliquam. Dicta laudantium quis ipsam et.
Eligendi qui corporis dolor hic nisi. Voluptatum cumque consequuntur cumque. Eligendi doloremque occaecati consequuntur illum amet voluptas voluptatibus.
Iste dolor in voluptate dolores cum consequatur. Voluptatibus reiciendis repellendus debitis velit exercitationem dolor dolor non. Consectetur modi quo est voluptatibus error. Sequi consequatur odit et temporibus quia doloribus. Corrupti et libero nobis necessitatibus ut. In qui sed quam ut qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...