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Blog · Forecast and pipeline · Investment banking

Pitch-to-mandate conversion by sector team: what a bank pitches and what it wins

How an investment bank's coverage and product groups measure pitch-to-mandate conversion from the pitch log and the mandate register: pitches made per sector team and product, mandates won, conversion by count and by estimated fee, the senior hours per pitch from time or calendar records, fees won per senior hour by cell, and the sectors and products where the bank pitches most and wins least.

The short answerPitch-to-mandate conversion is mandates won over pitches made, per sector team and per product, by count and by estimated fee, from the pitch log joined to the mandate register. The cost of a pitch is senior hours from calendar or time records at a stated rate. Fees won per senior hour, by cell, shows the sector and product combinations where the bank spends the most managing director time for the least mandated fee, and a bid discipline follows from the cells rather than from the pitch count.

A coverage team pitches constantly and wins some of it, and the relationship between the two is measured in anecdotes. The pitch log joined to the mandate register measures it by sector team and product, and the senior hours per pitch turn it into a cost. This guide sets out conversion, the cost, fees won per senior hour, and the cells the bank should pitch less.

The measures

Per pitch:

Won if a mandate for the same client and product was signed within the window Senior hours, from calendar or time records

Per sector team, per product:

Conversion by count = mandates ÷ pitches Conversion by fee = estimated fees on won pitches ÷ estimated fees on all pitches Fees won per senior hour = Σ mandated fees ÷ Σ senior hours on pitches

The rows you need

  • Pitch log: pitch, client, sector team, product, date, estimated fee, senior bankers.
  • Mandate register: mandate, client, product, signed date, fee.
  • Calendar or time: pitch, banker, hours.

Client and banker identifiers only.

The assertion

every mandate in the window joins to a pitch, or is listed unsolicited

Unsolicited mandates are real and good; they are also the ones a pitch log would miss, and they are shown separately so conversion is not understated.

A worked view

Sector team Product Pitches Mandates By count By fee Senior hours per pitch Fees won per senior hour
Industrials M&A 44 9 20% 24% 38 $18,000
Industrials DCM 31 14 45% 41% 12 $61,000
Technology M&A 62 4 6% 5% 52 $2,900
Technology ECM 28 8 29% 33% 20 $34,000
Healthcare M&A 38 10 26% 30% 40 $22,000

Technology M&A: sixty-two pitches, four mandates, fifty-two senior hours each, under three thousand dollars of mandated fee per hour of managing director time. Industrials DCM wins nearly half at a third of the hours. The bid discipline is per cell, and Technology M&A needs a written case per pitch.

Per client

Pitches to a client with no mandate in three years, and the senior hours spent, is a second list. A client that takes a pitch every quarter and mandates elsewhere is a price-check client at a bank's cost scale.

Where it goes wrong

Pitch count as the measure. The busiest team is the least converting.

No hours. Conversion without cost; the expensive cell looks like the ambitious one.

Unsolicited mandates merged. Conversion overstated; the pitch log looks better than it is.

Cells too small. Four pitches, one mandate, 25 percent. Show the count; grey under a floor.

Every quarter, per cell

Mapped once, the pitch log, the mandate register and the calendar records produce conversion by count and fee, the senior hours and fees per hour per cell, and the client list every quarter. Covirage builds this from the exports as they are. The investment banking page describes the setup, and the fee wallet guide covers where the mandates won sit against what the client pays everyone.

Questions people ask

Where does the pitch log come from?

The coverage group's pitch tracker, or the CRM's opportunity records for pitches, with client, sector, product, date and the estimated fee. Where no log exists, the pitch book repository's metadata is a proxy: one book per pitch, with the client and date.

How are senior hours captured?

Calendar entries tagged to the pitch, or a time record where the bank keeps one, at a stated rate per managing director or director hour. Approximate is fine; the ratio across cells is what matters, and it is usually large.

What about pitches that win a mandate a year later?

The join is on client and product within a stated window, twelve to eighteen months. A mandate won later is attributed to the most recent prior pitch in the window, and the window is on the report. Mandates with no pitch in the window are listed as unsolicited or unlogged.