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JPMorgan Chase and Investment Banking Boutique Evercore sold Morgan Stanley as chief rival by Goldman Sachs in the Core Wall Street Business of Deal -Making advice.
JPmorgan Created financial advisory fees in the past year – including mergers and acquisitions – of $ 3.29 billion, while Evercore recorded USD 2.45 billion Morgan Stanley $ 2.38 billion ..
The M&A fees are volatile between a quarter and even years, since they are paid up to ten million and generally only paid if a deal closes. However, the fees for 2024 confirm a shifting in the Hack Regulations of Wall Street in the past ten years, with JPMorgan, traditionally a top loan for companies, as well as upstarts such as evercore as great board players.
Goldman Sachs has dominated the business for a long time to advise Chief Executives about business. The latest data show that JPmorgan has consolidated his position as the second largest earner after taking Morgan Stanley duel in the 2010s.
Last year, JPmorgan has limited the gap with Goldman to the slightest time for at least one decade. In the fourth quarter, it reported 1.06 billion USD to consulting fees – without income from equity and debt insurance – to beat Goldman in one year for the second time.
Evercore recorded $ 850 million and Morgan Stanley only $ 779 million for the quarter.
M&A remains the crown jewel product in investment banking, whereby high operations on transactions attract appropriate fees. At the same time, M&A advice only requires a handful of bankers, in contrast to initial public offers or bond problems that require the armies of the staff.
“They give advice that are not goods,” said Devin Ryan, analyst at Citizens JMP Securities. “And so the fees for transactions have not come under pressure, as in many areas within financial services.”
The change of Wall Street Guard has developed when Morgan Stanley focused on building up the asset management business, in which it receives constant fees that are estimated by investors.
Morgan Stanley was a traditional investment Banking Blue Blood, which was cleared out of JPmorgan 90 years ago after the Glass Stagell Act, which the trade banks separated from Investment Banking. His alumni include Joe Perella, Bob Greenhill, Frank Quattrone and Paul Taubman, each of which was well-respected.
However, his asset management strategy was used by the former managing director James Gorman, who Returned from the role At the end of 2023.
“There was a great relief that Ted CEO became a man from our bank and more of a man from investing or asset management,” said a Morgan Stanley Investment Banker.
However, bankers often work for years to maintain the company relationships that provide lucrative fees in the industry and require long -term commitment to investment banking.
“Whatever shops are happening this year, they deserved them three years ago,” said a former senior investment banker in a large Wall Street company.
JPMorgan has also invested strongly in its M&A business, using the wide range of products that it offers to put on lucrative consulting mandates.
“At some point they were much more aggressive to say:” Hey, we are your biggest lender, so you should give us your consulting business, “said One Wall Street Chief Executive.
In 2023, the bank announced that it hired 200 million US dollars for the setting of “Revenue Producers” at its corporate and investment bank. Jamie Dimon, the long -time managing director of the bank, is known to call personally coveted customers in order to make JPmorgan’s case.
“JPMorgan was very consistent and very committed to growing the investment bank,” said Ryan of citizens.
Evercore was one of the largest winners under a new clique of boutiques that do not offer credit or commercial services, and ends up important mandates, including the sale of Calpine in the amount of USD 29 billion in constellation energy.
It has also expanded its consulting business beyond corporate M&A beyond private fund transactions and restructuring advice, where there are less competition from large investment banks.
“You did a lot to expand your franchise and establish yourself as a Premier Boutique Investment Bank,” said Aidan Hall, analyst at Keefe, Bruyette & Woods.
Other challengers such as Jefferies used the shifts on Wall Street to confiscate the soil in investment banking. Jefferies reported the advisory fees of USD 1.8 billion to November and defeated the Bulge Bracket Bank of America and Citigroup after a recent hiring.
