Former BarCap banker sets up advisory business for wealthy investors
Barclays Capital's former head of strategic equities for Europe, the Middle East and Africa is set to launch his own boutique to tap into demand from large companies and wealthy investors with bulging equity portfolios for advice on how to maximise returns and manage risks.
Jérôme Laurre left BarCap in May to set up his own advisory business, which will launch in September, offering independent advice to clients on the tax, legal, regulatory and accounting aspects of structured equity transactions.
These deals help companies or financial institutions with large equity holdings raise finance against their assets, maximise the returns on their investments or protect against falls in the market.
Some of the greatest demand this year has been from investors in the Middle East with large stakes in western companies. Rather than simply buying and holding a stock, many are using structured solutions that allow them to use their equity as collateral to finance the purchase of a basket of investments that will offer maximum returns.
As reported by Financial News this week, bankers estimate that structured equity deals in Emea could generate revenues of $1bn (€707m) to $1.5bn this year, compared with about $1.5bn last year and $2bn the year before.
Laurre, who has more than 12 years experience structuring these deals said: "Equity financing is a high margin business if the shares held as collateral are liquid and the overall risk assessment of the transaction is right. There will be a few large new deals this year but the core of the business will be the restructuring of previous transactions."
Laurre was head of the strategic equity team for Emea at BarCap since January 2004, before which, he was head of the strategic equity business for the Americas at BNP Paribas for seven years.
Chicco di Stasi, a partner and head of Goldman Sachs' equity derivatives financing group, is another expert in structured equity solutions, on the move. Di Stasi, who was a key figure in helping the US bank to win business with Middle East investors, left the US bank last month, according to two sources familiar with the situation who did not know his future plans. Goldman declined to comment.
Strategic equity enjoyed substantial growth in revenues over the last few years and it remains an attractive business although banks will be more conservative in their assessments of the risks after some lost a lot of money on collateralised loans to Russian oligarchs when the Russian equity market collapsed in value last year.
Laurre said: "The banks that didn't lose money on previous round of transactions will still have the support of their management to engage in new business but most banks will be more cautious and newcomers will have to be careful not to lend on too-aggressive terms."
Separately, Roger Jenkins, a high-profile executive for Barclays who played a central role in raising billions to shore up the UK bank last year, is leaving to launch his own advisory firm, people familiar with the matter told The Wall Street Journal.
Jenkins, executive chairman of investment banking and investment management for Barclays in the Middle East, started talks about a year ago to leave the bank so he could spend more time with his wife and young children, who live in Southern California.
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