RBC Capital Markets is intensifying its expansion in the United States, with CEO Derek Neldner confirming a broad hiring initiative across investment banking and trading. In an interview with Bloomberg, Neldner stated the firm is in a "growth mode," adding staff across the board, with particular emphasis on technology, healthcare, industrials, and financial institutions.
Over the past seven months, the Canadian bank's investment banking arm has added 205 employees in the U.S., 23 of whom hold managing director titles. The hiring spree is part of a broader strategy to deepen the firm's footprint in American financial markets, where it competes with bulge-bracket banks and independent advisory platforms.
The expansion comes as RBC Capital Markets is involved in the upcoming SpaceX initial public offering, expected to list on the Nasdaq on June 12 under the ticker SPCX. The space exploration company, led by Elon Musk, is reportedly valued at $1.75 trillion, making it potentially the largest IPO in history. RBC Capital Markets is listed as one of 23 joint book-running managers on the S-1 prospectus.
Neldner also highlighted plans to grow the trading business, though he did not provide specific targets. The move aligns with RBC's broader ambitions in the U.S., where its wealth management arm, including City National Bank in Los Angeles, reported $1.9 billion in revenue for the second quarter, up from $1.7 billion in the same period last year.
During RBC's recent earnings call, CEO Dave McKay noted that the U.S. wealth management division oversees nearly $800 billion in assets under administration. The unit attracted $5 billion in net new assets during the second quarter, along with over $2 billion in recruited assets from advisor hires. McKay also hinted at potential M&A activity to further grow the U.S. wealth business.
The hiring push at RBC Capital Markets mirrors trends across the wealth management industry, where firms are competing for top talent to capture market share. For context, Rockefeller Capital Management recently partnered with Anthropic to build an AI platform for ultra-high-net-worth advisors, while RFG Advisory integrated iCapital's alternatives platform to meet advisor demand for private markets.
RBC's expansion comes amid a challenging environment for investment banking, with deal volumes still recovering from a post-pandemic slump. However, the firm's focus on key sectors and its involvement in high-profile transactions like SpaceX underscore its commitment to gaining share in the U.S. market.
