There's been another rush of exits from Deutsche Bank's investment banking division. This time it's real estate (rather than FIG) and many of the escapees are thought to be reconvening at Jefferies.
Deutsche Bank didn't comment on the departures, but insiders say that at least six people have left the real estate team in recent weeks, with four resigning yesterday.
The latest resignations include: Rishi Bhuchar, who was promoted to head of real estate in July 2018; Tim Lloyd Hughes, the bank's chairman for real estate gaming and leisure; Tom Field, a vice president (VP) on the real estate team; and Anand Subramanian, a senior associate. All are thought be going to Jefferies.
Other recent exits include Leon Li, a former VP on Deutsche's real estate team who just joined J.P. Morgan, Dean Palmer, an associate who also went to J.P. Morgan, and Olga Gorlovskaya, a former VP who joined SocGen as a director in September.
The exits follow multiple departures from Deutsche Bank's London financial institutions group (FIG) team, and the voluntary disappearance of various juniors from its technology media and telecommunications team.
Deutsche has been pruning its investment bank as CEO Christian Sewing cuts costs and focuses on key areas. A large proportion of the London healthcare team disappeared in June (some voluntarily) and the oil and gas team was closed in May. However, real estate investment banking is one of Deutsche's more successful areas and Bhuchar is a major player in the sector- at the start of this year, he advised on Unibail-Rodamco's acquisition of London's Westfield shopping centre, for example, in a deal worth $25bn.
While Deutsche Bank has a policy of deferring 100% of its senior managing directors' bonuses for five full years, Jefferies has a reputation for paying generous bonuses in cash. However, Jefferies big cash bonuses usually come with punitive clawback clauses requiring that they're paid back if recipients leave within several years of receiving them. Deutsche's ex-real estate team is clearly intending to stick around.
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