Relationships with family-run businesses matter more to bankers in Asia than anywhere else. FinanceAsia has analysed which tycoons turn to which bankers when they want to get a deal done.
The list of top investment bankers for 35 of Asia’s tycoons was generated in collaboration with data provider Dealogic and was based on FinanceAsia’s rich list published last September and included a few newcomers such as Alibaba and Dalian Wanda. Today we look at those ranked 11 to 20.
|The top investment bank by tycoon|
|Tycoon||The families' flagship companies||Top investment bank by fees earned||Net revenue since 2000* ($m)|
|11||Chung Mong-Koo||Hyundai||Bank of America Merrill Lynch||45|
|12||Charoen Sirivadhanabhakdi||TCC Assets & Thai Beverage||DBS||43|
|13||Dhanin Chearavanont||CP group||Siam Commercial Bank||40|
|14||Yang Huiyan||Country Garden||JP Morgan||40|
|15||Keswick family||Jardine Matheson||JP Morgan||40|
|16||Koo Bon Moo||LG||Morgan Stanley||39|
|17||Wang Jianlin||Fosun International||Morgan Stanley||38|
|18||Samin Tan||Asia Resources Minerals & PT Borneo Lumbung||Credit Suisse||35|
|19||Anil Ambani||Reliance Infrastructure||Citi||33|
|20||Savitri Jindal||JSW Steel||State Bank of India||33|
In terms of methodology, Dealogic looked at fees paid for investment banking advice by the companies from 2000 and the top deals done across equity and debt capital markets, M&A and syndicated loans for that period. The list included tycoons in Asia but excluded Japan and Taiwan. The data does not capture fees earned from privately executed deals.
Bank of America Merrill Lynch has emerged as the top bank to Korean tycoon Chung Mong-Koo's Hyundai group pocketing $45 million since 2000. It was as a bookrunner on Hyundai Capital America's bond deals in 2012 and 2013 and also advised Hyundai Engineering & Construction in the sale of a controlling stake to Hyundai Motors.
Meanwhile, JP Morgan is the top fee earner for the Keswick family, the dynasty of Scottish origins which controls the Hong Kong-based Jardine Matheson. JP Morgan's relationship with the Keswick family dates back to 2000 when it advised Jardine Matheson on its sale of its stake in merchant bank Robert Fleming to Chase Manhattan.
JP Morgan is also the top banker to Chinese real estate tycoon Yang Huiyan, who controls Country Garden, and has been a bookrunner for all of its major bond offerings and equity follow-ons in 2012 and 2014.
Out of Thailand, CP group and TCC Assets, the private vehicle for Thai tycoon Charoen Sirivadhanabhakdi along with the listed Thai Beverage have generated deal-flow.
The key beneficiaries for TCC Assets recent increased deal flow have been the Singapore banks. DBS Bank earned the most fees –chalking up to $43 million since 2000– followed by UOB, which earned $28 million. TCC has been a client of DBS for over five years and DBS previously helped TCC finance its purchase of the Bugis Intercontinental Hotel in Singapore. Both DBS and UOB also jointly financed TCC’s S$13.8 billion bid for Fraser & Neave in 2012.
Among the foreign banks, Deutsche Bank has been a winner in terms of fees, earning $21 million, making it the third largest fee earner. The bank most recently advised Frasers Centrepoint, which is controlled by Charoen, on its acquisition of Australand. Chotipat Bijananda, who is currently the adviser of TCC Holdings and married to the daughter of Charoen, was previously the head of investment banking for Deutsche in Thailand.
Siam Commercial Bank emerged as the top banker to CP Group, controlled by Thai tycoon Dhanin Chearavanont, pocketing $40 million. Dhanin has stepped up its deal-making since 2013 as the tycoon has made a string of overseas acquisitions to diversify away from Thailand. Siam Commercial Bank has lent to the group and successful in parlaying its lending relationship to play a role on the advisory side, having advised CP All on its acquisition of retailer Siam Makro alongside UBS.
Notably, Dealogic does not take into account privately executed deals, and the ranking could be dramatically different if those are included.
Chearavanont is a UBS private banking client and in 2013, the Swiss bank stepped in as lender when CP group bought a 15.6% stake in Ping An Insurance from HSBC, after China Development Bank pulled its financing. On the investment banking side, UBS investment banker Richard King is also the coverage banker to CP group.
UBS did not disclose the fees it earned from advising on the Ping An acquisition but in the first quarter of 2013, the bank’s pre-tax profits almost doubled from Sfr509 million ($474 million) to Sfr977 million ($911 million), mainly thanks to a large private transaction in the bank’s equity capital markets business. According to a source familiar with the matter, the rise was largely thanks to the Ping An acquisition, which included the use equity derivatives.