Murmurs in Middle Eastern M&A recruitment
After a period of relative inaction during the first half of 2009, mergers and acquisitions activity in the Middle East perked up once again during the third quarter. And, with some banks having over-cut their teams in this area towards the end of last year, there are signs of life in the recruitment market once again.
In the three months to September, 63 deals worth a total of $11.7bn were completed in the Middle East, according to figures from Dealogic compiled for Financial News.
Admittedly, this was largely down to a single deal worth $8bn - where Etemad Mobin acquired a 50% stake in Telecommunication Company of Iran - but Q3 deal volumes still outstrip the $9.4bn generated in the entire first half of 2009.
And this is beginning to have an affect on hiring. "In the last month, we've seen the biggest upturn in investment banking recruitment since September 2008," says Metin Mitchell, managing director Middle East at headhunters Korn/Ferry International.
Predictably, Goldman Sachs is among the winners - topping the announced M&A deal league tables to 15 October with 11 mandates worth $22.2bn - while Bank of America Merrill Lynch leads the completed deal rankings, with 10 transactions worth $20.8bn.
Sadly, headhunters tell us that Goldman isn't recruiting, and tends to rely on (often temporary) internal transfers from other markets for key positions in the Middle East - as was the case with Alistair Warren who switched from co-head of UK investment banking to Dubai last year, before returning in February.
BoA-Merrill, meanwhile, has already hinted at Middle Eastern expansion, but this has yet to translate into definite recruitment plans.
"The bank is under-staffed in the GCC, and although it's expressed it's commitment to the region, this has yet to show result in hiring," says one person close to the situation.
One bank that has definitely been recruiting, however, is Rothschild which has doubled its investment banking team to around 20 this year. Headhunters tell us that Credit Suisse and JPMorgan are also hiring for M&A.
"We're seeing definite interest in M&A expertise again, particularly those with access to sovereign wealth funds and FIG experience," says Adam El-Balawi, director, Gulf at headhunters Principal Search.
"However, whereas in 2007 the trend was to recruit people at a mid-level with good execution skills, now it's mainly senior hires - director, senior directors and managing directors. These are people who possess good contacts and can add value from day one."
