Boutique Investment Bank BDA Cuts Jobs in China on M&A Woes

BDA Partners has cut some investment bankers in Shanghai to cope with intensifying competition in China and uncertainty over deals, people familiar with the matter said, marking the latest financial services firm to retreat from the world’s second-biggest economy.

Five Shanghai-based investment bankers have been let go by the boutique firm, which focuses on mergers and acquisitions, and a couple have relocated to BDA’s Hong Kong office, the people said, asking not to be identified because the information is private. Three senior bankers are staying in Shanghai to work on existing mandates and originating new deals, the people said.

BDA may also consider moving to a smaller office to cut costs, although no final decisions have been made, the people said.

Founded in 1996 with offices in New York and Singapore, BDA provides Asia-focused M&A advice to global clients, mostly on small-to-mid-sized transactions, its website shows. It also has offices in Shanghai, Hong Kong, Tokyo, Seoul, Mumbai and Ho Chi Minh City, as well as London.

“BDA has been in China since 1999 and we remain strongly committed to M&A across China, Hong Kong and Taiwan,” Simon Kavanagh, BDA’s head of Greater China, wrote in an emailed response to a query from Bloomberg News. “We continue active coverage of China, including having senior bankers on the ground in Hong Kong and the PRC.”

While the volume of deals involving Chinese firms has grown this year, there are still plenty of challenges for advisers. They include a tightening of inbound investment, wide valuation gaps between buyers and sellers, cutthroat competition that is squeezing fees, and difficulty in getting deals finished because of geopolitical and regulatory tensions, such as with tariffs.

Other investment banks, law firms and investment managers have also downsized in China.

Prominent Wall Street law firm Skadden, Arps, Slate, Meagher & Flom LLP shuttered its Shanghai office last year and laid off staff. Fidelity International also planned to cut jobs in China, while Vanguard Group Inc., Van Eck Associates Corp. and Matthews International Capital Management LLC retreated too.

Meanwhile, private equity firm Permira is overhauling its Asia strategy, closing offices in Hong Kong and Shanghai and shuffling senior leadership to India, where it sees stronger momentum and a more robust pipeline for deals, people familiar with the matter said earlier this year. Other alternative asset managers from KKR & Co. to Blackstone Inc. are also ramping up investments in India and elevating locally based executives to key regional roles.

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