Russia Market Overview October 2017

Now that we are well into Q4 and our clients are starting to review headcount and plan for bonus season, we wanted to share our findings from our recent trip to Moscow:

Overview

  • Given favourable market conditions for local banks, platforms such as VTB Capital and Sberbank CIB maintain dominant coverage in Investment Banking in the large cap segment, with the likes of Renaissance Capital taking the lead in covering the 300+ mid-market corporates

  • International firms’ headcount for teams on the ground in Moscow has reduced on average by 48% in IBD, by 71% in Equity Research and 54% in Equity Distribution since 2012, with several key individuals being relocated to London and other strategic hubs. This allowed platforms to retain coverage depth with the possibility of redeploying headcount once market activity picks up

  • Compensation level for bulge bracket investment bankers based on the ground in Moscow remains comparable on net base salary to London for players that remain pegged to USD / EUR

  • Quasi-governmental institutions and family offices have benefited from the influx of talent looking for pockets of opportunity in the local market following the restructuring of teams in London and Moscow  

Hiring Trends

  • Local players with competitive international platforms have invested into strengthening their off-shore distribution teams with hires such as Tomas GATEK in London and Sabrina RICCI in New York for VTB Capital and Danielle SIMON for Renaissance Capital in New York, among others

  • Private Equity Funds as well as Family Offices have shown interest in beefing up teams across Director/Vice President/Associate levels over the last 6 to 12 months, both with a view of improving sector content in Technology, Consumer and Retail, as well as replacing departures pursuing opportunities in the industry outside of traditional financial services

  • Positive Capital Market signals, have triggered a pickup in interest towards CMO candidates with experience in the Russian market across level

Cross Border / Cross Product

  • Wealth Management remains an attractive lateral transition for investment banking, equities and fixed income professionals, with Maxim AREFYEV being one of the more recent senior bankers to have moved across, joining Credit Suisse as Head of Wealth Management Moscow

  • Russian speaking London based candidates have expressed interest in considering a relocation to Moscow ‘for the right opportunity’, based on increasing deal flow and tax arbitrage. Facts such as Brexit concerns, desire to be closer to Russian based clients, competitive advantage in their native market have all played a role in their decision-making process

  • Financial Services Firms are competing, perhaps for the first time, for the strongest talent with Russian Technology Companies such as Yandex and Mail.ru, who are targeting candidates both on the ground in Moscow, as well as keeping eyes open for Russian speakers abroad

For the Delta house view please reach out to Alisa Stadnyk and Irina Perova for a one on one

Best Regards,

Delta Executive Search Team

Posted by Irina Perova
Friday 20th October, 2017

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