Barrenjoey throws cat among the pigeons at UBS and JPMorgan

Barrenjoey Capital founding partners, from left, Brian Benari, Chris Williams, John Cincotta and Guy Fowler. Picture: Jane Dempster

Competition among the investment banks for mandates in the market is expected to get interesting this year.

Industry newcomer Barrenjoey Capital Partners, launched by the former top investment operatives in Australia at UBS, is anticipated to hire more staff from UBS and JPMorgan, with some suggesting that departures involving between 20 and 50 people could be on the cards at the two banks by the end of next month.

This is at the same time that Jarden continues to add to its ranks as part of its push into the Australian market.

But DataRoom understands the established investment banking houses in the Australian market are putting up a strong fight to ensure they do not lose business.

There have been suggestions that to protect their positions in the market, the targets of the raids are offering existing clients discounts on fees to any considering a move to Barrenjoey.

The talk is that the discounts on offer are below whatever is Barrenjoey’s asking price. If true, it could make winning new business a greater challenge than initially anticipated for Barrenjoey. Things are expected to come to a head early next month.

At UBS, cash bonuses will be banked at the end of this month and senior staff will receive bonus payments in the form of stock early next month, so it will likely be after this time that any mass exodus will occur.

Barrenjoey still needs to find top investment banking talent to cover private equity, industrial companies and natural resources.

This shines the spotlight on Australian UBS investment banking operatives such as Justin Dwyer, Kelvin Barry, Luke Bentvelzen, Mitch Turner and Calvin O’Shaughnessy, who bank such sectors.

Research analysts are also still needed, along with staff performing other back-office functions.

Former JPMorgan analyst Ben Brayshaw, who covers real estate, infrastructure and transport, has already jumped ship. Barrenjoey may have aspirations to hire UBS banking analyst Jonathan Mott and mining analyst Glyn Lawcock.

Barrenjoey has already poached from UBS infrastructure banker Jarrod Key, capital markets operative Barry Sharkey and telco banker Peter Nelson.