Dax, tech and mountains: Munich attracts funding bankers | EUROtoday

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ZBetween the fitness center and “Cafe Roma” on the decrease finish of the stylish Maximilianstrasse in Munich, there’s nonetheless no signal of the brand new tenant. Only within the underground automobile park do the plaques with the silver letters “GS” reveal who will likely be shifting in right here in March: Goldman Sachs is the primary of the big funding banks to open a presence within the Bavarian capital. But she received't be the one one. Morgan Stanley needs to return in the summertime, smaller homes like Perella Weinberg have lengthy been there. The density of DAX corporations and tech start-ups, massive insurers and monetary buyers – but additionally the close by mountains are the explanation why funding bankers in Germany are immediately not simply to be discovered round Frankfurt's Opernplatz, but additionally 400 kilometers additional south.

“We will be represented in Munich with a team of around 30 bankers, some of whom are moving there from Frankfurt, but also some from London,” says Wolfgang Fink, who’s accountable for enterprise in Germany and Austria at Goldman Sachs continental European unity. “The city is becoming more and more international.” Tammo Bünnemeyer is meant to arrange the Munich workplace for Morgan Stanley; he focuses on know-how corporations. “In phrases of market worth, there’s round a 3rd of the Dax and greater than ten 'unicorns' right here, i.e. start-ups with a valuation of greater than a billion {dollars}, is how he explains his upcoming transfer from Hesse to Bavaria. There is enterprise right here Mergers and acquisitions, but additionally with IPOs.

Siemens, Allianz and BMW are heavyweights within the DAX, EQT and General Atlantic are among the many largest tech buyers. But aspiring German software program corporations and lots of European subsidiaries of US Internet corporations from the business have additionally settled in Munich. “And we want to be where our clients are,” says Fink. Especially within the know-how business, Goldman Sachs and Morgan Stanley are essentially the most sought-after advisors alongside JP Morgan. That's why at Goldman, along with accomplice Tobias Köster's staff, who takes care of monetary buyers, the know-how, telecommunications and media bankers (TMT) round Macario Prieto, who’re accountable for the business all through Europe, are additionally shifting to Munich.

Munich advantages from Brexit

“In the long term, this regionalization is also a result of Brexit, after which more business moved to the continent for regulatory reasons,” explains Fink. “The European continent has become more important overall as a result of Brexit,” says Bünnemeyer. Frankfurt and Paris, but additionally Amsterdam, fought for the position of the largest beneficiary for a very long time. It is outstanding that Munich advantages from this.

The US funding boutique Perella Weinberg was one, if not the pioneer, of the trek to Munich. Shortly earlier than the corona pandemic, she opened her workplace within the Schwabing nightlife district in 2020 – the one one in Germany. Until then, the bankers had labored on Europe from London, then Paris was added. “In London and Paris there is a high concentration of companies and decision-makers – in Germany it is more distributed, here people are constantly on the move,” says Dietrich Becker, European boss and accomplice at Perella, in an interview with Reuters. “That's why we asked ourselves: Which location has the highest concentration of customers?” The reply was clear: Munich.

“Many decision-makers work – and live – here. And it’s a city where you can live well,” says Becker. “Munich is a great location.” Stefan Jentzsch and Johann von Wersebe, two of Perella’s companions, i.e. the highest-ranking bankers, are based mostly in Munich. Former Deutsche Bank CFO Marcus Schenck moved from Perella Weinberg to rival Lazard two years in the past, however remained in Munich. According to insiders, the US funding banking boutique PJT Partners, which suggested Software AG on its sale to a monetary investor, additionally needs to return to Munich quickly.

However, it isn’t anticipated that Munich will quickly exchange Frankfurt because the German banking capital. Morgan Stanley employs round 600 bankers on the Main; in Munich it would in all probability initially be a smaller double-digit quantity. At Goldman Sachs the dimensions ratio is analogous. And the leisure worth of town with its mountains and lakes performs a task extra for extra subtle bankers. “Viewed from other European countries, Munich is certainly attractive,” says Fink, even at residence in close by Austria. “But when you start your career, many colleagues feel at home in Frankfurt more quickly.”