Standard Chartered's head of mergers and acquisitions, Gautam Khandelwal, said the bank aims to double its dealmaking activity after a recent hiring spree, as it capitalizes on a rebound in investment banking in Asia.
Hiring Spree and Strategy
Khandelwal, who joined the bank in 2022, has hired over 20 bankers in the past year, including senior dealmakers from rivals such as Goldman Sachs and JPMorgan. The team now numbers about 60 professionals, focusing on cross-border transactions involving Asia, the Middle East, and Africa.
“We have built a strong platform, and now we want to double down on M&A,” Khandelwal said in an interview. “The pipeline is robust, and we are seeing significant opportunities in sectors like technology, healthcare, and financial services.”
Market Rebound
The M&A push comes as investment banking revenues in Asia are recovering after a slump in 2022 and 2023. According to data from Dealogic, Asia-Pacific M&A volumes rose 15% in the first half of 2024 compared with the same period last year, driven by a surge in cross-border deals.
Standard Chartered, which has a strong presence in emerging markets, is particularly well-positioned to advise clients on deals involving China, India, and Southeast Asia, Khandelwal said.
Focus on Cross-Border Deals
The bank is targeting mid-sized deals worth between $500 million and $2 billion, where it can leverage its local expertise and relationships. “We are not trying to compete with the bulge-bracket banks on every deal,” Khandelwal said. “We want to be the go-to bank for clients looking to navigate complex cross-border transactions in our core markets.”
Outlook
Standard Chartered's M&A ambitions are part of a broader effort by CEO Bill Winters to boost the bank's investment banking division, which has lagged behind rivals in recent years. The bank reported a 12% increase in investment banking fees in the first quarter of 2024, driven by a strong performance in debt capital markets.
Khandelwal said he expects the M&A market to continue improving, supported by lower interest rates and a more favorable regulatory environment. “We are at the beginning of a new cycle, and we intend to make the most of it,” he added.
