With about US$35 billion worth of IPOs already cancelled globally this year, investment bankers need to replenish their deal pipelines.
But how exactly do bankers convince issuers they should be entrusted with their stock market listings, or what will almost certainly be one of the most important market events for the company?
Enter the investment bankers. In Asia, these generally include: country teams, in charge of the coverage of corporate clients in defined geographic regions; sector teams, who also cover clients, but with a focus on a certain industry regionally; and product groups, specifically mergers and acquisitions, and debt and equity capital markets departments.
'Origination' efforts often involve all three sides, with the primary responsibility usually resting where the best relationship lies. Targets lists are drawn up, and potential clients - unbeknownst to them - are often ranked across one of three brackets (the cream labelled as 'platinum' or 'tier one') according to how much fees they may generate in a given year.
Investment banks do not have flat management structures. At the top of the pyramid are the apex predators - the managing directors who spend much of their time drumming up new business, and get paid accordingly. Below are often various classes of directors or vice-presidents, who divide their work between origination in a supporting role and the execution of mandated transactions.
And at the bottom of the pile are the expendables - the associates and analysts, or petites mains (to use a haute couture analogy), who actually do most of the work and draft endless (and ever-changing) pitch books for client meetings.
Winning new business can take many forms, but actively meeting clients face to face (preferably involving bottles of one of the First Growths), and at all levels, remains a prerequisite.
