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- Australia’s expatriate bankers are returning home in unprecedented numbers, enticed by the launch of new boutique advisory firms and an up-tick in deal-making
- Australia’s corporate environment has had a strong start to 2021, with roughly $6.21 billion worth of mergers and acquisitions already underway
- That figure puts Australia second among its Asia Pacific neighbours — behind China — compared to its seventh place ranking in the same period of 2020
- The rise of two boutique firms, Barrenjoey Capital and Jarden, has also fuelled a talent war, pushing wages up by at least 20 per cent
- Australia’s banking executives have said the greater level of activity in onshore deals means banks are able to offer more lucrative pay checks
Australia’s expatriate bankers are returning home in unprecedented numbers, enticed by the launch of new boutique advisory firms, an up-tick in deal-making and an economy largely unscathed by the pandemic.
Evidence of a strong recovery from a brief COVID-induced recession is starting to reverse a long-standing tradition of Australian bankers heading overseas to more tax-friendly global financial hubs.
“There is a brain gain happening in Australia, we are acquiring additional knowledge and experience,” said Nick Hughes, Australia co-head at UBS.
According to data from Refinitiv, Australia’s corporate environment has had a strong start to 2021, with roughly $6.21 billion worth of mergers and acquisitions already underway — in excess of seven times more than this time last year.
That figure puts Australia second among its Asia Pacific neighbours — behind China — compared to its seventh place ranking in the same period of 2020.
The trend is only expected to continue, at least in the short-term, with major deals like the potential sale of Crown Resorts on the cards, as well as the divestment of other financial businesses.
The rise of two boutique firms, Barrenjoey Capital and Jarden, has also fuelled a talent war, pushing wages up by at least 20 per cent.
According to a spokeswoman, Jarden — the Australian offshoot of the New Zealand investment bank — has hired eight Australian expatriate bankers, traders and analysts as part of its campaign to build out its local franchise.
Meanwhile, Goldman Sachs has had eight Australian staff return from overseas and Swiss bank UBS has seen four come back.
Likewise, Bank of America has hired two senior expatriate bankers, the bank’s country head Joseph Fayyad said.
“With new entrants establishing a presence and the incumbents defending their positions, there are more available seats for senior bankers,” Fayyad told Reuters.
The majority of returnees are landing in Sydney from cities like London and New York, bringing with them varied levels of experience.
They are among a fortunate handful of people currently allowed to enter the country, which closed its international border to almost all travellers with the exception of returning nationals and permanent residents.
“I think Australia’s outperformance during COVID has put a real spotlight on the benefits of working and living down under, so the combination of more available seats and a greater desire from Australians to come home has really fuelled the trend,” said Fayyad.
Australia’s banking executives have said the greater level of activity in onshore deals means banks are able to offer more lucrative pay checks for those already used to New York and London salaries.
Aidan Allen, head of investment banking at Jarden Australia, said the “brain gain” has helped the emerging bank build a team of almost 100 since its launch just one year ago.
“A lot of our talent has come from offshore, people wanting to return home has been a massive opportunity for us,” Allen said.
“We think it’s a point of difference, it’s given us the opportunity to have a more diverse and experienced bench.”
Barrenjoey launched in September with 50 staff and now has about 220 people.
However, Fayyad says the influx of expatriates should also be a warning for incumbents.
“Bankers that have been here for some time need to acknowledge there is a new crop of talent who have a bit of hustle, a spring in their step, who want to make their mark,” he said.
