Goldman retains status as GPs' bank of choice

Despite a 27% drop in the amount of advisory fees Goldman Sachs has secured from GPs this year compared to last, the Wall Street titan still outranks all other banks.

Goldman Sachs has retained its status as GPs’ bank of choice for M&A advisory work this year, as measured by total fees secured, according to data complied by Thomson Reuters. The Wall Street titan captured $172 million in fees from buyout firms in the first nine months of 2011, more than any other bank, but a drop from the $236 million it collected in advisory fees over the same period last year.

In total, banks received some $3.5 billion in advisory fees from private equity-led M&A transactions in the first three quarters of 2011. In 2010 that equivalent figure was roughly $3 billion.

The data also reveals an uptick in the average fee paid by GPs. Of the 2,664 private equity-backed M&A deals in the first three quarters of 2011, the average fee paid was $1.33 million. In comparison, the average fee paid across the 2,451 deals over that same time period in 2010 was a lower $1.23 million.

Morgan Stanley, however, was the top bank in terms of number of deals. The bank advised 42 private equity M&A transactions in the first nine months of 2011, just squeaking past Goldman’s 41 deals.