Standard Chartered has launched a dedicated global financial sponsors team focused on private equity firms, hedge funds, and sovereign wealth funds, marking a strategic expansion of its investment banking franchise and a push to deepen ties with alternative asset managers, according to a report by Reuters.
The London-listed bank, with a core presence across Asia, Africa, and the Middle East, confirmed the new team will be headquartered in New York, with key satellite hubs in London and Dubai. The group will initially include around 25 bankers, with further external hires planned as part of a broader initiative to diversify and grow investment banking revenues.
While many European banks have scaled back US operations – most notably HSBC, which recently cut large portions of its US and European M&A and ECM business – Standard Chartered is bucking the trend by doubling down on financial sponsors, including private equity firms. The move reflects the bank’s intent to capture a larger share of advisory, financing, and capital markets mandates from the buoyant private capital sector.
The financial sponsors team will report to Molly Duffy and Jerry Zhang, the bank’s global co-heads of financial institutions coverage. Duffy will lead the new unit until a global head of financial sponsors is named.
“This is a strategic step in our evolution, aimed at serving private equity sponsors and financial clients more holistically and globally,” said Sunil Kaushal, co-head of corporate and investment banking at Standard Chartered. “Private capital firms are increasingly driving cross-border dealmaking, and we see major opportunity to support them with differentiated regional insights and capital solutions.”
Financial clients already generate 51% of Standard Chartered’s investment banking income, according to the bank – making them a critical pillar of its business with above-average returns. The new team will enable the bank to provide more tailored coverage for LBOs, growth equity deals, fund financings, and structured credit opportunities involving financial sponsors.
