Macquarie Capital, the investment banking division of Macquarie Group, has laid off a number of senior executives, including heads of groups and seasoned bankers, sources told PE Hub.
David Dorfman, global head of TMT advisory at Macquarie based in New York, is among executives set to leave the firm after his transition, which is expected to last a few months, the sources said.
Another senior tech banker, Sean McCarthy, a managing director on the TMT team, also departed. McCarthy reported to Dorfman.
According to some sources, four other TMT bankers were let go from the team. PE Hub was not able to confirm their names.
Other layoffs at the firm include John Katzenmeyer, managing director on the financial technology team based in San Francisco.
Bloomberg first reported in September that 70 people have left Macquarie.
Macquarie declined to comment on that figure. Sources told PE Hub the actual number of layoffs is higher than 70. People familiar with the situation described layoffs as “random” and “unexpected.”
On the TMT side, Macquarie is going through a banker reshuffling as it merges its TMT advisory and services group to form a new software and services group.
Sam Shah, who previously led the services group, will lead the combined team.
Some sources voiced concerns that the TMT layoffs come at a time when the technology sector continues to generate significant M&A and IPO activity – responsible for some of the largest transactions in the past few years.
Current mandates for Macquarie’s tech team include its co-advisory role on the sale process for Vista Equity’s Mediaocean. A transaction could value the company at more than $1.4 billion, PE Hub reported recently.
The Australian independent bank has laid off some of its US staff over the past two years. According to sources, the bank’s North American business is shrinking amid growing competition for M&A advisory mandates and it was not generating enough activity.
Other sources noted that Macquarie decided to refocus on its “power alleys,” which includes advising emerging companies and servicing financial sponsor clients, among other groups.
This is the second wave of layoffs at Macquarie since 2019.
In fall 2019, Macquarie Group cut around 100 jobs in New York and London after shutting its equities sales, trading, and research businesses.
Elsewhere, other senior tech bankers have made moves through the pandemic.
For example, the former global co-head of TMT at Harris Williams, Michael Wilkins, recently left to join Shamrock Capital.
In 2019, Guggenheim Securities hired two senior technology bankers, Scott Stevens and James Suprenant, from William Blair. Stevens and Suprenant joined as senior managing directors at Guggenheim’s Chicago office, focused on tech M&A.
Guggenheim bolstered its tech team with additional hires from William Blair, adding William Petty and Chris Macios. Meanwhile, William Blair in July hired two senior investment bankers from Sun Trust Robinson Humphrey, Jamie Hamilton and B.T. Remmert.
Piper Sandler has also been expanding its tech advisory practice, and according to sources, is interviewing candidates for other roles.
In September, the bank added Prashanth Cherukuri as a managing director in the technology investment banking group. Cherukuri moved to Piper Sandler from Jefferies, where he was a senior vice president.
Outside of tech, PJ Solomon has also been on a hiring spree in 2020, adding seven managing directors and expanding its M&A coverage with three new sector practices: healthcare, financial sponsors and FinTech.
The hires include Irina Adler, managing director on consumer retail team; Kristin Allen, managing director on the TMT team; Syed Husain, managing director on the healthcare team, with a focus on pharmacy; Sash Rental, managing director covering financial sponsors; Ryan Stewart, managing director on healthcare, with a focus on healthcare technology & tech-enabled services; and Nate Stulman, managing director in FinTech practice.
Macquarie declined to comment for the story.
Action Item: Read PE Hub’s recent story on Vista’s Mediaocean.
Update: This report has been updated to clarify the number of Macquarie layoffs and information on other banks’ tech hires. Names included in this report have been updated; a passage about the firm’s remaining tech officers was also cut because we could not verify who or how many remain.