Strategic Expansion: How Investment Banks Are Building Out Into New Sectors

March 2025 UK Investment Banking Market Update

March has been marked by a strategic push among investment banks to expand into new sectors and strengthen existing coverage areas. As the competitive landscape intensifies, firms face an important decision: is it more effective to acquire a platform, orchestrate a team move, or build organically through individual hires? Recent market activity highlights a range of approaches, each with distinct advantages and challenges.

Strategic Shifts and Expansion Moves

A flurry of team hires and strategic appointments underscores the industry’s focus on targeted expansion:

• Oppenheimer has reinforced its FIG and M&A coverage through a significant team hire from Hannam & Partners. This type of team move can provide an immediate injection of sector expertise and client relationships, offering quicker market access and revenue generation than organic growth.
• Piper Sandler has taken a mixed approach, expanding its Zurich presence through the hire of three ex-Credit Suisse bankers: Alex Molloy, Vincenzo Pescuma, and Luigi Colazzo, to strengthen research and distribution. Piper Sandler has also demonstrated success in acquiring platforms, providing a more immediate route to scale and access new markets.
• Lazard has secured Klaus Hessberger from J.P. Morgan to co-lead Global Financial Sponsors coverage, signaling a targeted move to deepen relationships with private equity and alternative capital providers.
• Ardea Partners has continued its expansion in FIG, bringing in Max Fallstrom from Evercore to strengthen its execution capability and sector expertise. Fallstrom will be working alongside Christian Kent, who was recently hired from Houlihan Lokey to lead Ardea Partners' FIG sector, a clear signal of the firm’s intent to build out a specialised and well-connected FIG practice.

Organic Growth vs. Acquisition: A Strategic Balancing Act

Building through individual hires allows firms to maintain cultural alignment and gradually develop sector expertise. However, this approach requires time, candidate market insight and access, as well as careful integration. On the other hand, acquiring a platform or orchestrating a team move can provide immediate market access and operational capacity, but at the risk of cultural misalignment and higher initial costs.

Piper Sandler’s mixed approach illustrates the benefits of both strategies: hiring individuals to build out capabilities while selectively acquiring platforms to accelerate market penetration. The Zurich expansion highlights how targeted hiring can complement strategic acquisitions, ensuring that local expertise is embedded alongside established infrastructure.

The Road Ahead

As investment banks navigate the growth landscape, the strategic choice between hiring, acquiring, or building organically will define competitive positioning in the years ahead. The most successful firms are likely to adopt a balanced approach, combining targeted team and platform acquisitions with organic growth. If done correctly, this can maximise both immediate market impact and long-term stability.

At Croft & Co, we have deep experience in advising on both senior strategic hires and orchestrating team moves. Our understanding of the complexities involved from cultural alignment to market positioning enables us to partner with clients to build long-term capability and competitive advantage.

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