RBC names new head of global investment banking as it focuses on international growth

Royal Bank of Canada RY-T launched a leadership shakeup in its capital markets division as the lender seeks out growth globally.

Co-head of U.S. investment banking Matthew Stopnik will become head of global investment banking as part of a restructuring that creates three new teams focused on building the bank’s business across markets internationally.

The changes are aimed at “driving increased global co-ordination while still focusing on growing and extending our position in each market and celebrating the nuances and differences across our regions,” RBC Capital Markets head Derek Neldner said in an e-mail statement.

RBC’s capital markets business holds 10 per cent of the market share in Canada, ranking it as the top corporate and investment bank in the country.

“Maintaining this market-leading position is critical and core to our strategy,” Mr. Neldner said.

However, the United States – which RBC considers to be its second home market – accounts for 56 per cent of the bank’s global fee revenue.

But Wall Street is an intensely competitive market where U.S. giants dominate and Canadian, European and Asian banks are all scrambling for a narrow slice of the business. RBC’s capital markets unit holds a 2.9-per-cent market share in the country.

Recently, RBC advised International Business Machines Corp. (IBM) on its US$6.4-billion deal to acquire cloud-computing and software company HashiCorp. Inc. The bank was also the adviser and lead bookrunner for Boston-based global private equity firm Advent International Corp.’s acquisition of digital payments processor Nuvei Corp. in a move that will take the Montreal company private.

Last year, RBC advised – and acted as joint lead with Bank of America – on jam and jelly maker J.M. Smucker Co.’s US$5.6-billion acquisition of Twinkies-maker Hostess Brands Inc.

Mr. Stopnik joined RBC in 2015 to jointly lead the financial sponsors team overseeing private equity clients after two decades at UBS Investment Bank.

His fellow co-head, Jim Wolfe, takes on the role of head of the global investment bank’s capital markets unit in New York, leading leveraged lending and equity and debt offerings.

Trevor Gardner, head of Canadian investment banking in Toronto, will oversee global investment banking coverage. Head of Canadian mergers and acquisitions Ben Mandell in Toronto will lead global mergers and acquisitions.

Dominic Hudson in London will continue leading RBC’s international business as head of Europe and Asia-Pacific investment banking.

RBC also tapped Vito Sperduto as head of capital markets in the U.S. to co-ordinate efforts to bolster growth in the highly competitive market.

Mr. Stopnik and Mr. Sperduto will both report to Mr. Neldner.