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.
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