On Tuesday evening, Citi’s equities team was riding high. Led by former Olympic rower Rob Jahrling, they had snagged the block trade of the year – an order to sell shares in logistics real estate giant Goodman Group worth almost $2 billion on behalf of China Investment Corporation.
By dawn, it was clear the champagne had been popped too soon. Citi was staring down losses as high as $50 million, far more than its equity capital markets team’s estimated $18 million fee revenue for the year.
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Sarah Thompson has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones. Email Sarah at sarah.thompson@afr.com
Emma Rapaport is a co-editor of the Street Talk column. Prior to that, she was a markets reporter at The Australian Financial Review. Connect with Emma on Twitter. Email Emma at emma.rapaport@afr.com
