March 7, 2017 – A flurry of big deals by financial services companies in Europe could earn investment banks an estimated US$332 million in advisory fees, with Goldman Sachs set to take the lion’s share of the pot.
In the past two days, Standard Life revealed plans to buy Aberdeen Asset Management and Deutsche Bank said it would raise 8 billion euros (US$8.48 billion) from investors, potentially generating a big payday for investment banks working on those transactions.
Earlier, British bank Shawbrook Group said it had received a US$1 billion bid from two private equity firms.
Goldman Sachs, which secured a major role in all three deals, has pocketed the highest fees from investment banking in the first two months of 2017 and pushing usual top dog JPMorgan into third place.
The U.S. bank could earn between US$18 and US$24 million for advising Standard Life while an additional US$13 to US$18 million could come from its advisory work with Shawbrook, according to estimates from Freeman Consulting.
Aberdeen’s corporate brokers, JPMorgan and Credit Suisse , which advised the Scottish asset manager on its sale, could share proceeds of between US$23 and 30 million.
But the biggest boost to investment banks’ fees will come from Deutsche Bank’s 8 billion euro share sale which could pay advisers up to 260 million euros, according to Freeman Consulting, based on underwriting fees of between 2 and 3.25 percent of the total raised.
Goldman Sachs is one of eight banks underwriting Deutsche’s the rights issue alongside Credit Suisse, Barclays , BNP Paribas , Commerzbank , HSBC , Morgan Stanley and UniCredit .