By Alexander Hübner and Emma-Victoria Farr

MUNICH (Reuters) – Munich is beginning to steal a few of German monetary hub Frankfurt’s limelight as overseas banks flock to the southern metropolis, which on a transparent day has views of the Bavarian Alps.

The attraction lies in Munich’s excessive proportion of corporations and tech start-ups, giant insurers and monetary traders, whereas the close by mountains add to its attract.

Companies equivalent to Goldman Sachs and Morgan Stanley have been drawn by huge German corporations equivalent to Siemens, Allianz (ETR:) and BMW (ETR:) being based mostly round Munich, whereas their bankers additionally worth the standard of life on provide.

“Many decision-makers work and dwell right here, it is a metropolis the place you’ll be able to dwell properly,” mentioned Dietrich Becker, head of Europe and companion at Perella Weinberg, including that Munich had the best focus of shoppers in Germany.

The U.S. funding banking boutique was a pioneer in selecting Munich for its German base, opening its workplace in 2020.

“In London and Paris there’s a excessive focus of corporations and decision-makers, in Germany that’s extra unfold out, persons are continually on the transfer,” Becker informed Reuters.

Together with huge established industrial and monetary names, EQT (ST:) and Normal Atlantic are among the many largest expertise traders current in Munich.

And there are additionally aspiring German software program corporations and plenty of European subsidiaries of U.S. expertise corporations.

Subsequent month, Goldman Sachs would be the first of the foremost funding banks to determine a presence within the Bavarian state capital when it opens a Munich workplace.

This shall be Goldman’s second workplace in Germany after Frankfurt, the place it has round 400 bankers, with its Wall Avenue rival Morgan Stanley set to comply with swimsuit in the summertime. “We shall be in Munich with a crew of round 30 bankers, a few of whom will transfer from Frankfurt but in addition some from London,” Wolfgang Fink, head of Germany and Austria and chairman of continental Europe at Goldman Sachs, informed Reuters.

“We need to be the place our shoppers are,” mentioned Fink, including that Munich was changing into “an increasing number of worldwide”.

TECH TEAMS

Within the German tech sector, Goldman Sachs and Morgan Stanley are amongst a number of the most sought-after funding banking advisers, alongside fellow U.S. large JP Morgan.

“When it comes to market worth, there are round one third of DAX corporations sitting right here and greater than ten ‘unicorns’, i.e. start-ups with a valuation of multiple billion euros,” mentioned Tammo Buennemeyer, a expertise specialist who will assist set up Morgan Stanley’s crew in Munich.

Goldman Sachs, in the meantime, says it can transfer the crew of Tobias Koester, which covers monetary traders, alongside its expertise, telecom and media bankers (TMT) underneath Macario Prieto, head of TMT banking EMEA.

“In the long run, this regionalisation can be a results of Brexit, after which extra enterprise moved to the continent for regulatory causes,” mentioned Fink.

Frankfurt, Paris and Amsterdam fought to be the most important beneficiary from Brexit after Britain left the European Union, with Munich proving to be an surprising beneficiary.

“The European continent as a complete has gained significance resulting from Brexit,” mentioned Buennemeyer.

Perella Weinberg companions Stefan Jentzsch and Johann von Wersebe are based mostly in Munich, whereas former Deutsche Financial institution CFO Marcus Schenck moved from the advisory boutique to Lazard (NYSE:) two years in the past, however stayed in Munich.

And one other U.S. funding banking boutique, PJT Companions (NYSE:) plans to open an workplace in Munich quickly, individuals with data of the matter informed Reuters.

Most bankers agree, nonetheless, that Munich is unlikely to rival the extra internationally-open Frankfurt as Germany’s banking capital, with solely a fraction of them employed within the Bavarian state capital for now.

“Considered from different European international locations, Munich is actually enticing,” mentioned Fink. “However firstly of a profession, many colleagues really feel at residence shortly in Frankfurt.”