Another bank is pruning people after hiring in 2022
It's not just Goldman Sachs. It's not just Morgan Stanley. It's also Peel Hunt. After hiring with some enthusiasm in recent years, Peel Hunt is making cuts encompassing its managing director ranks.
Peel Hunt isn't saying all that much about the cuts happening there this week, except that, "Every year we actively manage headcount throughout the year and 2023 is no different." The exits are thought to include numerous juniors, plus managing directors like technology banker Daud Khan (who'd been there 18 months).
Peel Hunt released its 2023 annual report last week, and the reason for its headcount trimming is clear. After increasing headcount by 6% (17 people) while revenues fell 60% last year, its revenues per head went from £438.3k in 2022 to £260.6k in the year ending 31st March 2023. The report is accordingly replete with references to difficult and turbulent times.
Once a corporate broker, Peel Hunt as evolved into a middle market investment bank focused on the European market. Despite the turbulence, it's opened a new office in Copenhagen and has been adding staff there.
UK middle market banks and corporate brokers have been struggling. Numis has fallen into the arms of Deutsche Bank and Berenberg made preemptive cuts last year. Corporate “brokers have high cost bases, not least to maintain their capital markets infrastructure,” Kunal Gandhi, senior managing director at Fenchurch Advisory Partners, told Bloomberg yesterday.
Having cut staff last year, though, Berenberg appears to be hiring again. Miles Cox, a director in Peel Hunt's M&A division, is due to join Berenberg when his gardening leave ends later this summer. Four research analysts are joining too.
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