A bank is closing its Paris office: "We're probably all being terminated"
There could soon be some new bankers available for hire on the French market. L'Informe, a French news site, reports that mid-market bank DC Advisory is closing its Paris office this summer.
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DC Advisory didn't immediately respond to a request to comment. Nor did David Benin, the former Morgan Stanley executive director who runs the French office.
Sources at the firm said it's expected to close in the next few months and that 50-55 people there are likely to lose their jobs. "We do not have a clear vision as of today on what will be the next steps, but probably all jobs will be terminated," says one insider at the bank in Paris.
DC Advisory is owned by Daiwa, which purchased the middle-market firm in 2009. Daiwa Capital Markets Europe hired former Standard Bank debt capital markets (DCM) banker Megan McDonald as its CEO in 2022. Daiwa is due to announce Q3 earnings at the end of January, but its most recent report stresses its intention to raise profitability. It also notes that Daiwa increased headcount in its investment bank globally from 650 people in 2022 to 800 people last year.
Sources at Daiwa in Paris say execution is expected to move to the UK as the bank closes in France and pursues increased EBITDA. Unconfirmed reports suggest that the closure of the French office was also spurred by a falling out over fees. "Whenever a deal takes place in the country, you have to pay 15-25% to the local branch, even if they have nothing to do with it," says one source. "London has fallen out with Paris as a result."
Alex Croft, a partner at Paris-based search firm Croft & Co, said it shouldn't be that difficult for people who lose their jobs at DC Advisory to find new ones. "Hiring has bounced back across both mid and large cap M&A advisory," says Croft. He says demand for talent is focused on two profiles: "associates with sufficient runway to VP," and "junior directors to help manage the junior team and provide a more attentive service and strategic dialogue."
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