“The biggest difference was the need to be across disparate topics across sectors and markets. It might’ve been solar tariffs in Spain [or] gas flows in northern Europe,” says Rachana Harrington, a managing director who covers infrastructure with Goldman Sachs in London.
Taking the plunge
For Australia’s junior bankers, being in a smaller market means they’re exposed to deals and executive management earlier in their careers than analysts in bigger financial centres, making local juniors viable candidates for transfers or promotions.
Citi’s Bechar Hamdan moved to New York as an associate from Sydney about six years ago. Now a director in its leveraged finance outfit, Hamdan says working on cross-border deals in Sydney exposed him to bankers in other markets, which piqued interest in a move abroad. “What stood out was the pace, the expertise and the energy [that I] really wanted to get some firsthand exposure to,” he says. “And when you’re in New York, you feel it’s the centre of the universe.”
Hamdan’s early days in Citi’s TriBeCa headquarters was a baptism of fire. One of the first buyouts he worked on was Blackstone’s roughly $US17 billion ($26.2 billion) acquisition of Thomson Reuters’ finance and risk business – now Refinitiv – in early 2018.
“I was a fresh face, and I got thrust into one of the biggest LBOs in the history of the market,” he says. “In probably the first four to five months, in New York, I looked at more than two to three years’ worth of deals [that I would have worked on] in Australia.”
Hong Kong, too, is known for its hard-charging lifestyle. It’s the epicentre of Asia-Pacific dealmaking and remains a key link into China.
As diversified industries head, Deutsche Bank’s Luu covers a swath of sectors. He’s worked on deals involving Malaysian energy group Petronas and Lotus Technology, which is backed by Chinese carmaker Geely Holdings. He says one of Hong Kong’s biggest differentiators is having to cover a region where each country is so different, be it geographically or culturally, and that’s given him a broader perspective of the region.
“You need to have some understanding of what’s happening. Either in the markets, or geopolitically, to really understand how clients in each country might think,” he says.
Ivan Varughese, a managing director who heads infrastructure and energy for Macquarie in Singapore, says he was “a little naive” when he first moved abroad, but over time his appreciation for the nuances between neighbouring nations grew. “While we may have the capabilities … to be effective, you must be local. You need to understand the environment. That differs from country to country,” he tells AFR Weekend.
“At the end of the day, I’m here because there’s a time and a need for what I was doing in Australia. There are common problems across Asia around needs such as infrastructure and climate change.”
‘Don’t hold back’
Whether it’s deeper capital markets, or access to a higher number of large companies – size and scope is a motivator for Australians at global banks.
Dominic Malouf, a Paris-based director in UBS’ European debt syndicate desk, says he deals with more borrowers and investors in the European capital markets. The speed of deal flow ramps up, and he describes transactions as “more intense”.
“The time zone also makes a difference in capital markets depending on where you are sitting,” Malouf says. “Australia’s trading session typically takes its lead from the US market close, whilst in Europe, the trading session begins midway through the Asian session, and closes while the US is still trading.”
Most bankers agree taking the plunge abroad expands their horizons. They gain an understanding of how overseas markets operate, and should they return home, they’re equipped with priceless experience, says Greg Zdun, who leads energy transition and natural resources for APAC at JPMorgan.
“It’s about building your network and familiarising yourself with the intricacies of each market. [And] keeping an open mind and approaching the learning curve without biases, especially when it comes to cultural nuances,” Singapore-based Zdun says. “Working abroad, especially early in your career, is a great opportunity.”
Imposter syndrome, however, can set in. An Australian might feel like a smaller fish in a big pond. Moving abroad could also be construed as a “side step”, taken when your career is just starting to flourish in Australia, Goldman’s Harrington says.
“Younger bankers typically consider a move abroad just as they develop an internal network … a move may not always feel logical if there is a perceived burden of starting from scratch in a new market,” she says, but adds it’s a “risk and challenge worth taking”.
Take JPMorgan’s Jeannette Smits van Oyen, she moved to Amsterdam in 2001 for further study and there were challenges as she adapted to life in The Netherlands, France and now London.
“No matter how prepared you think you are, or how many people you know, it can still be a daunting and somewhat lonely start. Each place presented its challenges as I adjusted,” she says.
RBC’s Hudson says starting over, and building new contacts in a new market takes time. It “shouldn’t be underestimated,” he says.
Van Oyen, who is now JPMorgan’s co-head of consumer and retail for Europe, the Middle East and Africa, admits there wasn’t “much of a plan”, but after more than 20 years, the banker has worked on hundreds of transactions in the US and Europe.
“I don’t think I ever planned to be away quite so long … However, as an interesting opportunity presented itself I would weigh it up,” she says.
Macquarie’s Varughese adds: “You have a global representation such that the dinner table conversation is different in terms of perspectives.”
Source: afr.com
