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Plenum 2013 – Financial Services Executive Search

Is UK Pension Business too “Lumpy’ for Investment Banks

Whilst all banks are theoretically interested in large transactions with pension clients, the reality is that pension funds and investment banks are uneasy bedfellows.

“Elephant trade” pension transactions are very large, very infrequent and notoriously difficult to predict. Yet investment banks expect P&L each quarter and consistency is often favoured over profitability.

The heavily intermediated pension market is hard to penetrate, trustees are conservative and sceptical of bankers and decision making times are incredibly long.

For the investment bankers it is a binary world, they are either superstars or failures. Rarely is there a comfortable middle ground. The pressure on teams with zero against their name is intense and the relief on transacting is palpable.

But despite all the challenges it is an incredibly innovative, exciting and highly lucrative market and one in which many banks have succeeded, with late 2011 having been a bumper period. That's why we believe that, whilst it may not be easy locating this lumpy business in an investment bank, it's certainly possible and highly desirable.

From a search perspective, the challenge is in understanding and navigating the complexities of the market, helping our clients to take a compelling proposition to the market and helping candidates sort the wheat from the chaff when it comes to banks commitment to the pension de-risking market.

To discuss further please contact TC Jefferson tcjefferson@theplenumgroup.com

Originally published on the Plenum Group website www.theplenumgroup.com/blogs