Awards for Excellence 2014: Best emerging markets M&A house
Far from struggling in the new regulatory environment, a more diverse business keeps Goldman first among equals in M&A.
Best emerging markets M&A house:
For years, Goldman’s rivals scoffed that the bank’s relatively modest DCM position, the limited supply of lucrative bespoke and structured trades compared to the pre-crisis era, and challenges of generating returns from principal investments in a new regulatory environment, would imperil its emerging market franchise.
Goldman’s EM franchise is now more diverse across product offering, from debt, IPOs to margin financing, propelled by an ever-expansive geographic footprint. Meanwhile, its onshore China presence highlights Goldman’s under-appreciated on-the-ground advisory as well as sales and trading presence in growth markets, which has compensated for limited deal flow in other markets.
The heart of Goldman’s strength – and ability to derive ancillary business – lies in M&A, where it is famed for its prowess as a dealmaker in both developed and emerging markets. From domestic champions buying locally or in developed markets, or Western corporates pouncing on targets in emerging markets, Goldman’s bankers remain the natural M&A advisers from the perspective of corporate executives, thanks to their industry expertise, breadth of contacts and market instincts, from asset disposals to strategic M&A, where it won a good number of sole buy-side advisor mandates.