2025 begins with momentum!

January 2025 UK Investment Banking Market Update

January has brought a new sense of optimism in the investment banking market, a sentiment many feel is long overdue. With Private Equity activity expected to rise, hiring in the advisory sector is on the up too. The UK investment banking market is however undergoing changes, with key senior dealmaker movements and compensation challenges.

Leadership and Team Movements

Recent movements have included Harris Williams, who saw the resignation of Julien Oussadon, who will join Moelis in Q2 2025 to join the growth of its Technology practice. DC Advisory faced departures within its FinTech/TMT team, with Mark Litz leaving. DC Advisory has also closed its Paris office due to strategic differences with London. Meanwhile, Piper Sandler build out its coverage in the Infrastructure sector with the hires of Paul Leece and Jeremi Martin, who joined from Cantor Fitzgerald.

Compensation Trends and Ratios

Compensation pressures are mounting as review season gets underway. RBC increased bonuses for top-ranked Associates and VPs to circa. 70% of base salary, but most ranks saw payouts of 50%-60%. Jefferies offered more competitive bonuses, with the most receiving 70%-90% and some exceeding 100%. Morgan Stanley disappointed some, with bonuses for many Associates and VPs ranging between 30%-60%. One senior at a full-service bank stated nervousness around potential turnover in the junior team, given limited scope to meet bonus expectations for top-performing individuals. Otherwise, flat revenues for the past view years and rising base salaries are straining compensation ratios, limiting bonus flexibility and risking employee dissatisfaction. How the banks retain their top talent, as we head into an active period for M&A, remains a key priority.

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