Co-lead Manager
In which types of transactions does a Co-lead Manager operate?
The term Co-lead Manager is primarily used in capital markets transactions, whether in:
Debt Capital Markets (DCM)
- Bond issuances;
- Convertible bond issuances.
- Initial Public Offerings (IPOs);
- Capital increases;
- Secondary share placements (block trades).
When an issuer (corporate or financial institution) seeks to raise capital, it appoints several banks to:
• structure the transaction;
• place the securities (equity or debt);
• and where applicable, underwrite the deal.
These banks operate within a syndicate, and each institution is assigned a defined role — including that of Co Lead Manager.
The Co Lead Manager acts alongside the Lead Manager, who oversees the transaction.
What is the role of the Co Lead Manager?
Unlike the Lead Manager, who plays a central role including the structuring of the transaction, the coordination of the syndicate, and the direct relationship with the issuer, the Co Lead Manager mainly contributes to the placement of the securities and does not take part in the structuring.
It operates under the coordination of the Lead Manager or the Global Coordinator, in a complementary role.
1. Placement support and investor outreach
Sales teams from the Co Lead Manager:
- contact investors within their network and geographical reach;
- present the key investment highlights;
- collect purchase orders (number of securities and price indications).
2. A secondary placement role compared to the Bookrunner
Compared with the Bookrunner, the Co Lead Manager:
- plays a less active role in the placement process;
- is allocated a smaller portion of the securities to place;
- receives a lower share of fees as a result;
- does not interact directly with the issuer.
Communication with the issuer is handled by the Global Coordinator or, in the absence of one, the Bookrunner.
Why include Co-lead Managers in a transaction?
Issuers may choose to appoint one or several Co-lead Managers for several strategic reasons:
1. Strengthening placement capacity
A Co-lead Manager may bring strong placement capabilities in a specific geographic market (e.g., the United States for a European issuer), expanding the investor base.
2. Increasing equity research coverage
In ECM transactions - particularly IPOs - the Co-lead Manager:
- publishes a research report;
- provides ongoing analyst coverage;
- enhances the visibility of the issuer among investors.
This broader analyst coverage supports both the success of the offering and post listing market liquidity.
3. Maintaining commercial relationships
Issuers may involve several banking partners to:
- acknowledge existing commercial relationships;
- foster long term partnerships;
- ensure balanced participation among their panel of banks.
Thus, while the Co-lead Manager holds a secondary role, it contributes meaningfully to the overall success of the placement.