Key facts
- UK dealmaking shows no signs of slowing.
- Investment banks are looking to expand their teams in London.
- Finding senior talent is proving difficult.
- Bonuses for dealmakers are expected to increase by up to 30% in 2026.
- Top performers are capturing larger incentive pools.
Investment banks are actively seeking to bolster their teams in London as the UK mergers and acquisitions market continues its strong performance. The current boom in dealmaking has led to a significant increase in hiring, but this has also created concerns about a potential shortage of senior talent. Firms are focusing on retaining and attracting top-performing dealmakers to maintain their market share and capitalize on the buoyant deal pipeline.
According to compensation consultants Johnson Associates, bonuses for dealmakers are anticipated to rise by as much as 30% in 2026. This increase is driven by the need to retain existing key staff and attract new talent in a competitive market. Chris Connors, managing director at Johnson Associates, stated that the demand for senior dealmakers is expected to continue, with a sharp focus on revenue producers. While some banks have managed headcount carefully, the overall incentive pools are growing in aggregate dollar amounts, with top performers capturing the largest share.