Thomson Reuters Releases Full-Year 2010 Global Investment Banking Review
M&A Back to 2008 Levels; Biggest Year for Investment Banking Fees Since 2007
London, New York – Thomson Reuters today released the full-year 2010 global reviews for mergers and acquisitions and capital markets activity.
The value of global mergers and acquisitions (M&A) totaled US$2.4 trillion during the full-year 2010, a 22.9% increase from comparable 2009 levels and the strongest full-year period for M&A since 2008. Emerging markets accounted for 33% of M&A - totaling US$806.3 billion during full-year 2010, a 76.2% increase over 2009. The Energy and Power sector was the most active during full-year 2010, commanding 20.6% of announced M&A. Private equity-backed M&A activity totaled US$225.4 billion during full-year 2010, the biggest year for global buyout activity since 2008. M&A advisory fees from completed transactions totaled US$30.0 billion for 2010, a 27% increase from the comparable period in 2009. Goldman Sachs is the top advisor for M&A globally for 2010 with US$554.5 billion from 370 advisory assignments.
Equity capital markets (ECM) activity totaled US$854.2 billion during full-year 2010, a 2% decrease from the comparable period in 2009. Global IPO volume totaled US$269.4 billion, with issuers from the emerging markets accounting for 50% of IPO volume in 2010. Global follow-on offerings totaled US$496.3 billion for 2010, a 25% decline compared to full-year 2009. Morgan Stanley led all equity capital markets underwriters for full-year 2010 with US$80.7 billion in proceeds from 322 issues.
Global debt capital markets (DCM) for full-year 2010 totaled US$5.1 trillion, a decrease of 10% compared to last year, despite an 18% increase in the number of global offerings. 2010 issuance for global high yield debt reached the highest levels for any full-year on record, with total issuance of US$317.5 billion, up from $177.2 billion for the full-year 2009. New issuance of corporate debt from emerging markets issuers totaled US$216.6 billion during full-year 2010, a 39.6% increase over 2009. Barclays Capital took the top spot for full-year 2010 with total proceeds of $422.9 billion and total imputed fees of $1.1 billion.
Global investment banking fees in 2010 reached US$84 billion* for full-year 2010, a 9% increase over 2009 and the biggest full-year for investment banking fees since 2007. Asia Pacific investment banking fees registered a 22.2% increase over 2009, leading all regions. JP Morgan topped the global investment banking fee league table during 2010, with fees totaling US$5.3 billion for 6.4% of the global fee pool.
"2010 marked the return of measured confidence for the investment banking industry. While we are clearly still in a post-credit crunch environment, M&A and private equity firms are returning to robust deal activity and investment banking fees are on the rise. While the US is showing good signs of recovery, Asia and the emerging markets continue to play an increasingly important role in global deal making with 60% of all IPO activity coming from Asia. By contrast, European investment banking fees dropped 13.5%, showcasing the affects of the economic crises in the region. However, with corporations holding record amounts of cash, attractive financing opportunities, and a growing IPO pipeline, many of the factors are in place for continued momentum in 2011,” said Neil Masterson, Global Head of Investment Banking at Thomson Reuters.
* Source: Thomson Reuters/Freeman Consulting
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