One of Russia’s biggest investment banks has teamed up with a relative boutique player in the US in a bid to kick-start more cross-border investment banking deals between the two countries.
VTB Capital and Evercore Partners have announced what they term a “strategic cooperation agreement” to develop cross-border transactions between Russia and North America. The tie-up should benefit both parties – VTB will have deeper local connections in Russia, while Evercore has better knowledge and industry relationships in the US, but the latter’s global reputation could result in bigger deals with internationally minded corporates, funds, government agencies and individuals.
This is not an uncommon tactic in emerging markets. In the Middle East, for instance, a number of large international banks have satellite offices staffed by a small number of senior deal-makers who look to set up cross-border transactions. In Saudi Arabia, meanwhile, international banks enter strategic partnerships with regional players in order to access local markets.
The move between Evercore and VTB Capital is therefore unlikely to lead to a proliferation of recruitment, but could necessitate some senior hires down the line.
VTB Capital has a similar arrangement with BTG Pactual to access the Latin America market.
Ralph Scholosstein, president and CEO of Evercore Partners, describes the tie-up as “another step in the globalisation of our firm”, while Alexei Yakovitsky, global CEO of VTB Capital, says it’s an “important milestone” in extending the bank’s business internationally.