Citi's Talent Grab from J.P. Morgan and the Strategic Implications for APAC Investment Banking

The battle for dominance in Asia-Pacific investment banking has intensified as Citigroup executes a calculated talent raid on J.P. Morgan, reshaping competitive dynamics and signaling a strategic rebalancing in the region’s M&A markets. Since Viswas “Vis” Raghavan joined Citi in June 2024, the bank has aggressively recruited over 15 senior bankers from JPMorgan and other rivals, including Kaustubh Kulkarni (co-head of APAC investment banking), Pankaj Goel (technology banking), and Aloke Gupte (equity capital markets) [1]. These hires, coupled with Citi’s focus on high-growth sectors like technology financing and Asia-Pacific expansion, have driven a 13% year-on-year increase in investment banking fees in Q2 2025 and elevated Citi to fifth in global investment banking revenue and fourth in M&A revenue for H1 2025 [2].

The APAC M&A market, while still recovering from post-pandemic volatility, has shown resilience. Deal values rose 10% in 2024 to $797 billion, with optimism growing as macroeconomic conditions stabilize [3]. Citi’s talent-driven strategy has capitalized on this momentum, particularly in Japan, India, and Southeast Asia, where local expertise is critical for navigating regulatory complexities and capturing advisory opportunities. For instance, Kulkarni’s appointment as co-head of APAC investment banking brought 28 years of JPMorgan experience, including leadership in India and Southeast Asia, to bolster Citi’s regional footprint [4]. This move aligns with broader trends: 47% of APAC CFOs expect increased M&A activity over the next three years, driven by domestic consolidation and sponsor exit pipelines [5].

JPMorgan, however, has not remained passive. The bank has hired over 100 senior bankers in the past year, including figures like Kamal Jabre and Gerry Lee, to counter Citi’s offensive [6]. Yet, Citi’s strategic hires have yielded measurable results. In Japan, Citi’s investment banking fees surged 140% year-on-year, fueled by landmark deals like Nippon Steel’s $14.9 billion acquisition of U.S. Steel [7]. Meanwhile, JPMorgan’s M&A revenue growth in Q2 2025 was a modest 8%, underscoring the competitive pressure from Citi’s talent-driven innovation [8].

The implications for APAC M&A markets extend beyond individual bank performance. Analysts note that talent is increasingly a catalyst for deal success, with 85% of APAC CEOs prioritizing strategic M&A and AI adoption to drive transformation [9]. Citi’s Gen AI tools, which automated 740,000 code reviews and saved 100,000 hours of developer time, further enhance its competitive edge [10]. This technological and human capital synergy positions Citi to dominate in high-growth sectors like renewable energy and digital transformation, where expertise is scarce and demand is surging.

Critically, Citi’s talent strategy reflects a broader structural shift in APAC M&A. As geopolitical tensions and economic uncertainties persist, firms are prioritizing local leaders with cross-border execution capabilities. Kulkarni’s role in Singapore, for example, underscores Citi’s commitment to leveraging regional expertise to navigate regulatory and market-specific challenges [11]. This approach aligns with Deloitte’s findings that 61% of APAC CEOs now anticipate M&A activity within 12 months, up from 39% in the previous quarter [12].

While JPMorgan remains a formidable player—leading APAC M&A in H1 2025 with a 73% surge in deal volumes—Citi’s aggressive talent acquisition has narrowed the gap. The bank’s Q2 2025 M&A revenue growth of 52% year-on-year, compared to JPMorgan’s 8%, highlights the direct correlation between strategic hiring and performance [13]. This competitive rebalancing suggests that APAC M&A markets are becoming more dynamic, with firms like Citi leveraging talent and technology to outmaneuver traditional leaders.

For investors, the takeaway is clear: institutional talent shifts are not just a barometer of competitive positioning but a driver of market attractiveness. As Citi and JPMorgan continue to poach top talent, the APAC M&A landscape will likely see increased innovation, higher deal volumes, and a more fragmented competitive hierarchy. The question is no longer whether APAC M&A will rebound but how quickly firms can adapt to a talent-driven paradigm where expertise and agility define success.

Source:
[1] Citigroup continues strategic investment banking talent raid on JPMorgan [https://www.investmentnews.com/wirehouses/citigroup-continues-strategic-investment-banking-talent-raid-on-jpmorgan/261753]
[2] Citi's results reveal another fine quarter for its M&A bankers [https://www.efinancialcareers.com/news/citi-results-q2-25]
[3] M&A Annual Report: Is the wave finally arriving? [https://www.mckinsey.com/capabilities/m-and-a/our-insights/top-m-and-a-trends]
[4] Citi Taps JPMorgan Veteran To Lead Asia Banking Expansion [https://finimize.com/content/citi-taps-jpmorgan-veteran-to-lead-asia-banking-expansion]
[5] APAC CFO 2025 survey report [https://www.deloitte.com/us/en/insights/topics/strategy/apac-cfo-2025-survey-report.html]
[6] JPMorgan's giant hiring spree as bankers defect to Citi [https://www.efinancialcareers.com/news/jpmorgan-hiring-mds]
[7] Citi's Strategic Talent Acquisition and Expansion in Asia [https://www.ainvest.com/news/citi-strategic-talent-acquisition-expansion-asia-catalyst-outperformance-global-investment-banking-2508/]
[8] Citi's M&A bankers are thriving, DCM ... [https://www.efinancialcareers.com/news/citi-results-q2-25]
[9] Optimism skyrockets among Asia-Pacific CEOs [https://www.ey.com/en_nl/newsroom/2025/01/optimism-skyrockets-among-asia-pacific-ceos-with-a-focus-on-strategic-deals-to-achieve-transformation-ambitions]
[10] Citi's M&A bankers are thriving with no permanent leader [https://www.efinancialcareers.com/news/citi-s-m-and-a-bankers-are-thriving-with-no-leader]
[11] Citi Names Kaustubh Kulkarni Co-Head of Investment Banking for Asia Pacific [https://money.usnews.com/investing/news/articles/2025-09-03/citi-names-kaustubh-kulkarni-co-head-of-investment-banking-for-asia-pacific]
[12] Resilience Rising: How APAC Leaders Respond to Trade ... [https://www.kornferry.com/insights/featured-topics/leadership/how-apac-leaders-respond-to-trade-shifts]
[13] Citi's Talent Grab: How Strategic Hires from JPMorgan and ... [https://www.ainvest.com/news/citi-talent-grab-strategic-hires-jpmorgan-goldman-sachs-signal-era-investment-banking-2507/]