Deutsche Bank Russian chief to start boutique

Financial News

Jason Corcoran in Moscow
25 June 2007

Deutsche Bank is to lose one of its most senior Russian executives after giving him the go-ahead to start an investment boutique.

Ilya Sherbovich, head of investment banking at Deutsche Bank in Russia, has been given permission to launch a business as part of an agreement that will allow him to leave the German group with more than $200m (€149m) in stock and compensation when his contract expires next year.

A source close to Deutsche said: “Ilya has been given permission to work on this after we convinced him to stay on until the end of his contract. It’s in no way linked to Deutsche.” Sherbovich and a spokeswoman for Deutsche Bank in Moscow declined to comment.

The new venture, United Capital Partners, has raised $300m to invest in public and private equity and hired several of his former colleagues.

Sherbovich is the third-largest shareholder, with a stake of between 15% and 20%, in UFG, the Russian brokerage he founded with Charles Ryan and Boris Fyodorov and which Deutsche bought in a two-step deal for $700m. The German bank acquired 40% of UFG in 2003 and the remainder last year.

Deutsche persuaded Sherbovich to see out his contract after the departure of its co-head of investment banking, Nick Jordan, to Lehman Brothers and further defections in the scramble to secure top talent in Russia.

The bank has since appointed Andrew Chulack and Dmitry Snesar as joint deputy heads of global banking in Russia as part of its plans to find a successor for Sherbovich.

Both are responsible for the investment bank’s daily operations and report to Sherbovich, who is believed to have stepped back from a client-facing role.

Further appointments to its global markets team are expected this week, according to a Deutsche source.

United Capital Partners is modelled on UFG Asset Management, the Fyodorov-run investment business that was not part of the sale to Deutsche. Article tags:

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