Jefferies equities boss to retire

Andrew Norman, among the architects of Jefferies Australia’s robust growth since 2019, has signalled his retirement from the firm over coming months.

Jefferies executive Andrew Norman. Picture: Gittings Photography

Equities market stalwart Andrew Norman, among the architects of Jefferies Australia’s robust growth since 2019, has signalled his retirement from the firm over coming months.

Mr Norman informed Jefferies’ staff and customers of his decision in an email on Wednesday, which was obtained by The Australian. Jefferies – a New York-listed investment bank – is yet to name a successor and will begin an external search to fill the vacancy, as Mr Norman stays on to assist a smooth transition. The changing of the guard will have other investment banks on alert, given their senior equities staff may be targeted for the role.

The email by Mr Norman on Wednesday said it was time to “hang up” his Bloomberg terminal and retire to the Southern Highlands in NSW.

“Whilst my departure means a few of the nearby restaurants and bars may come under financial pressure, Jefferies will continue to flourish,” the email added. “We have many great leaders in the business and have always had exceptional support from offshore. Our momentum is well documented.”

The senior departure from Jefferies comes as a host of newer firms in this market – including Jarden and Barrenjoey – jostle to pick up market share and cement a strong position.

Mr Norman’s retirement is also a loss for the local stockbroking industry, which has endured a string of pressures over the past decade, including the rationalisation of the funds management and industry superannuation fund sector. Mr Norman started in the sector some 36 years ago alongside industry veterans Geoff Wilson and Mark Nelson on the sales desk of Prudential Bache. Mr Wilson went on to found Wilson Asset Management and Mr Nelson is the executive chairman of Caledonia.

Jefferies Australia chief executive Michael Stock, who spearheaded the ramping up of the US firm’s operations in this market, told staff

the transition to a new equities boss was aimed at continuing “strong momentum” in that part of the franchise.

“Andrew has been integral to building Jefferies Australia since joining us with his broader equities and research team in 2019,” he said. “Since indicating to us his interest to retire in due course, Andrew has been working closely with us on how we approach an orderly transition and continue the strong momentum we have in our equities franchise.

“I personally want to thank Andrew for being a great partner and leader in our business.”

Mr Norman said in the email he would assist Mr Stock, Jefferies global head of distribution Matt Foulds and Asia president Murray Wilson in finding his replacement.

The equities and research business of Jefferies Australia began after the firm conducted a bold raid of CLSA’s local operations, poaching about 25 employees. Mr Norman was the country head of CLSA Australia, according to his LinkedIn profile, following stints running Nomura’s equities business and jointly leading Credit Suisse’s unit.

Since setting up here Jefferies now accounts for about 2 per cent of trading across the ASX and Chi-X Australia, given the firm doesn’t participate in high-frequency and other lower margin trading activities. On another measure, it has about 6.5 per cent of total fund manager wallet.

But like other investment banks operating in Australia, Jefferies had a tougher year in 2023 amid a slump in mergers and acquisitions activity.

Accounts lodged with the corporate regulator showed Jefferies Australia generated $102.9m in revenue on a consolidated basis, and net profit of $7.8m for the 12 months ended November 30.

That compared to $127.5m revenue and a $36m profit in the prior corresponding period.

The firm has continued to expand, however, and after setting up an office in Melbourne last year now has about 10 people stationed there. Across its Australian offices, Jefferies employs about 130 people.

The firm’s local advisory business has mandates including advising private equity giant KKR in its quest to buy Perpetual’s corporate trust and wealth management units.