Jefferies has hired two senior Deutsche Bank equity dealmakers, another sign that competition for talent in the sector is heating up amid a surge of initial public offerings and blank-cheque companies.
The US investment bank has taken on Andrew Yaeger and Paul Stowell, two veterans of the German lender, according to people with knowledge of the hires. The recruits follow a record quarter for Jefferies’ equity underwriting unit, which nearly tripled to $495m during the first quarter of 2021.
Yaeger joined Deutsche Bank in 2004, and has held various senior roles at Deutsche Bank including co-head of its equity capital markets business in the Americas. He is currently global head of strategic equity transactions group, according to his LinkedIn profile.
Stowell is a managing director within Deutsche’s equity and convertibles unit in New York, and joined the bank 13 years ago from UBS.
A Jefferies spokesperson declined to comment.
The strategic equity divisions of investment banks work on complex or bespoke equity deals, including special purpose acquisition companies — so-called blank-cheque companies that have exploded in popularity over the past year.
Spacs, which raise money on public markets to fund acquisitions at a later date, hit $96.1bn in the first quarter alone, surpassing previous annual records within three months, according to data provider Dealogic.
Deutsche has long been a dominant player in the Spac market, which has become increasingly competitive as fees have surged. The German lender made $288m in the first quarter of the year from Spacs, according to Dealogic, ranking sixth globally in the revenue league tables. Jefferies ranked fourth in the first three months of 2021, making $333m, the data show.
Deutsche has been bolstering its roster of dealmakers within its equity capital markets business in Europe and Asia amid the Spac boom, despite exiting stock trading as part of its strategic overhaul in 2019 that will see 18,000 jobs cuts.
Investment banks are hiring more equity capital markets bankers amid the surge in deals. BNP Paribas poached Christoph Heuer from Goldman Sachs as co-head of Northern Europe ECM, and has also taken on Deepak Sran as a managing director from UBS, according to people with knowledge of the hire.
Independent investment bank Evercore is also hiring equity bankers after a record first quarter.
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