eFinancialCareers

Some investment banks are boosting their restructuring and work-out teams in anticipation of a wave of defaults and restructurings when the next downturn hits, and when it does, they will have to pay handsomely to keep them.

Lee Thacker, a partner in the financial services team at recruitment firm Highland Partners says Goldman Sachs, Merrill Lynch, Royal Bank of Scotland, Barclays Capital, and Credit Suisse are among those building their distressed businesses alongside leveraged finance. What is more, the number of boutique restructuring advisers - often staffed by former investment bankers - has ballooned. And as the battle for talent intensifies, pay is expected to increase.

“I think some of the leading restructuring names like Lazard, Rothschild will be defending their teams and therefore paying them relatively well in order to keep them,” he says.

Thacker says there is little incentive for leveraged financiers to jump ship to restructuring at the moment while the primary market is still robust, but this is expected to change. “In the next 1-2 years this might be a natural progression for some of these professionals. And compensation will be very strong at this time.”

“Everyone is building their teams now because once the market breaks, it will be too late,” Edwards Eyerman, managing director of leveraged finance at Fitch Ratings tells the Financial Times.