Rothschild Brings Its Debt-Advisory Business to U.S. With New Hire
November 29 2016 - 5:00PM
Dow Jones News
Rothschild & Co. has hired former Credit Suisse Group AG
banker Michael Speller to lead a new debt advisory business in
North America.
The new hire is a bet that a similar Rothschild business in
Europe and other parts of the world will do well in the U.S., where
the boutique bank has been expanding. The firm in August announced
it hired longtime UBS Group AG investment banker James Neissa to
build out its North American advisory business, and it opened a
Chicago office the following month.
Rothschild's North American debt advisory business plans to
counsel clients on how to best sell bonds, loans and other
instruments. Unlike big banks, it won't use its balance sheet to
backstop offerings or deal as closely with mutual funds, hedge
funds and other investors who typically participate in big debt
sales. The approach is meant to free the firm from conflicts
stemming from working with both debt sellers and buyers.
Mr. Speller formerly served as a managing director in Credit
Suisse's leveraged finance origination business, pitching debt
deals for the bank's industrial clients. He's due to start his new
job in February.
Rothschild is expanding its debt advisory business as
private-equity firms and sovereign-wealth funds move into the
lending business, partly in response to tighter regulations on
banks in the U.S. and Europe.
"Today, you have a market that has been in many ways
disintermediated from traditional sources," Mr. Neissa said in an
interview Tuesday. "You have pockets of capital all over the world
looking for specific areas of investment. We're matching specific
pockets of capital with specific needs in ways that in the past was
fulfilled by the one-stop shop."
Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com
(END) Dow Jones Newswires
November 29, 2016 16:45 ET (21:45 GMT)
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