Citigroup hires Drago Rajkovic as co-head of M&A from JPMorgan, memo says

Citigroup has appointed Drago Rajkovic, formerly Global Chairman of M&A at JPMorgan Chase, as its new co-head of mergers and acquisitions, according to an internal memo. Rajkovic, who brings over 30 years of advisory experience and recently advised on deals such as Salesforce's $8 billion acquisition of Informatica, will join Citigroup in September and co-lead M&A with Kevin Cox, splitting his time between New York and San Francisco. This strategic hire signals Citigroup's intent to bolster its M&A division with a seasoned dealmaker.

Analysis

Citigroup (C.N) has made a significant strategic move to bolster its mergers and acquisitions division by appointing Drago Rajkovic, formerly Global Chairman of M&A at JPMorgan Chase (JPM.N), as its new co-head of M&A. Rajkovic brings over three decades of advisory experience and a strong track record, having recently advised on notable transactions such as Salesforce's $8 billion acquisition of Informatica and Hewlett-Packard Enterprise's $14 billion purchase of Juniper Networks. This hire, effective in September, will see Rajkovic co-lead the M&A practice alongside Kevin Cox and report to Viswas Raghavan, Citi's head of banking and another JPMorgan alumnus, potentially indicating a focused strategy to leverage experienced talent from rival firms. The appointment is perceived as moderately positive for Citigroup, reflected in a sentiment score of 0.5, suggesting an enhancement of its M&A capabilities and competitive positioning. Conversely, JPMorgan experiences a slightly negative sentiment (-0.1) due to the loss of a senior dealmaker, although the overall market impact of this individual move is considered low (0.3). This development underscores the ongoing competition for top-tier talent in investment banking and Citigroup's commitment to strengthening its advisory services, particularly within the M&A & Restructuring theme.

Key Decisions for Investors

• Investors in Citigroup should consider this a positive development for its investment banking division, with potential for enhanced M&A deal flow and revenue; accordingly, future M&A league table performance and advisory fee contributions warrant close monitoring.
• For JPMorgan, the departure of a senior M&A figure is a minor headwind, but its broad and deep talent pool in investment banking is expected to mitigate any significant impact; nevertheless, attention to talent retention at senior levels remains pertinent.
• This strategic hire by Citigroup underscores the intense competition for top M&A talent and may reflect an optimistic outlook on, or a strategic intent to more aggressively pursue, M&A advisory mandates in the current environment.