A new heavyweight in equity research challenges the industry. France's third-largest publicly traded bank, Société Générale, and the US asset manager AllianceBernstein forge a joint venture, following the example of other financial conglomerates. After approval by antitrust authorities, the joint venture for cash equities and equity research – serving as a platform for analysis of stocks and trading for institutional investors – is now launched. The consolidation of business sectors was initiated by Société Générale CEO Slawomir Krupa in November 2022, shortly before he took the helm of the bank.

This move is part of efforts to keep pace with larger competitors like BNP Paribas in France and leading Wall Street banks Goldman Sachs and J.P. Morgan. The new entity, named Bernstein, employs over 750 staff and operates through two legal entities. One in New York overseeing the Americas, and the other in London overseeing Europe and Asia.

It encompasses research on approximately 1,000 different stocks and access to the „Bernstein University,“ where the company's analysts share their expertise. Additionally, Bernstein acts as a platform connecting securities issuers with institutional investors.

Société Générale aims to become the majority owner of Bernstein after five years, by 2029. Robert van Brugge, who previously led AllianceBernstein's research unit, has been appointed as Bernstein's CEO, with Stephane Loiseau, formerly in charge of Société Générale's cash equities business, as his deputy.

The bank hopes to attract more clients through the joint venture, particularly for initial public offerings (IPOs), and to expand beyond its core markets in Europe. Société Générale aims to offer its clients more services through its partnership with Bernstein, including agency execution, stock and macro research, equity derivatives, equity capital markets, and prime brokerage. This follows the example of its French competitor BNP Paribas, which expanded its Exane equity research business in the United States after acquiring it in 2021.

Market consolidation in equity research continues – a trend that began in 2018 with the introduction of Mifid II regulations in the EU. The directive mandates that investors must pay directly for equity research. Previously, banks often cross-subsidized research through securities trading. Some banks ceased their equity research business as a result, such as Nord/LB.

Other institutions opted for partnerships. For instance, Commerzbank collaborates with Oddo BHF. In late 2023, the bank also secured the business of Austrian Raiffeisenbank International. Unicredit partnered with Kepler Cheuvreux years ago. Kepler also collaborates with French Crédit Agricole. Meanwhile, some banks retained or expanded their research operations. Berenberg claims to have one of Europe's largest equity research teams, covering over 900 companies. More than 300 US stocks are analyzed by teams in London and New York, according to the bank.