Piper Sandler Reports M&A Slowdown, Strong Healthcare ECM and DCM Gains
Piper Sandler saw slowed pace in larger bank M&A but steady small-deal volume, and its derivative desk recorded higher hedging transactions despite rate volatility. Healthcare-led equity capital markets drove outsized Q1 market-share gains, while Debt Capital Markets advisory delivered a standout non-M&A quarter.
1. Bank M&A Trends
Management noted a moderation in announced larger bank mergers and acquisitions but highlighted consistent activity in smaller transactions, while the firm’s derivatives desk managed a higher volume of hedging trades despite rate curve volatility.
2. Equity Capital Markets Performance
Piper Sandler achieved outsized market share gains in Q1 equity capital markets, led by Healthcare and Industrial sector deals, though executives cautioned that this level of performance may not be sustainable into the next quarter.
3. Advisory Fees Outlook
Advisory revenue is projected to decline sequentially as macroeconomic choppiness and a drop in bank deal announcements weigh on fees, offsetting a strong but one-off surge in Healthcare and Medtech advisory work during Q1.
4. Non-M&A Business Highlights
Debt Capital Markets advisory emerged as the standout performer among non-M&A services in Q1, while private capital advisory and restructuring delivered solid but more modest contributions to overall growth.