Case study: the spin-off trend in investment banking private equity sector: Intesa Sanpaolo-Neuberger Berman partnership

Abstract

The following case-study describes the situation involving Intesa Sanpaolo and Neuberger Berman during 2014-2015 period. Its structure is divided between the case narrative and a teaching note. The narrative starts by describing the deleveraging strategy Intesa Sanpaolo implemented by creating the capital light bank. It continues by explaining investment banking strategies in a dynamic regulatory framework with a focus on Private Equity secondary market. The final part comprises an analysis of the Intesa Sanpaolo-Neuberger Berman deal. It represents a perfect bridge between understanding strategic concepts in which leading Investment Banks are adopting, and learning about how to structure a private equity merchant banking spin-off. The teaching note intends to evaluate the effects of spinning-off Intesa Sanpaolo Merchant Banking, while at the same time analysing regulatory issues. Lastly, it aims to analyse commonly used deal terms as well as counterparty opportunities.