Financial News
Jason Corcoran in Moscow
05 May 2009
Charlie Ryan, one of the highest profile bankers in Moscow, has scaled back his duties as chairman of Deutsche Bank Russia after joining a new venture capital firm Almaz.
Ryan, who founded one of Russia’s first investment banks, UFG, in 1994, has been focusing on managing private equity since stepping down last year as country head and chief executive of Deutsche Bank in Russia. Ryan had stayed on as non executive chairman following the arrival of Igor Lojevsky in August last year to replace him.
Deutsche Bank said Ryan continued to hold the position as non executive chairman despite his commitments to Almaz and UFG Asset Management.
Almaz, which has offices in Moscow and Silicon Valley, is backed by technology group Cisco Systems and UFG Asset Management, which Ryan co-founded with Boris Fedorov in 1996.
Almaz, which raised a $60m fund with Cisco as the anchor investor, had made its first two investments in an internet telephony firm Apollo Project and computer software provider Parallels. Ryan is a partner and works in its five-member investment team.
A Deutsche Bank insider said Ryan commutes from Philadelphia in the US and concentrates on UFG’s private equity and venture capital investments. Ryan remains a chairman at UFG, which has about $1bn (€750m) in assets under management.
In 1998, UFG sponsored an early-stage technology investment company called ru-Net Holdings, which invested in Yandex, Russia’s leading search engine and Ozon, the Amazon.com of Russia.
Ryan is believed to have made the biggest personal fortune of any foreign banker in Russia. He masterminded the 40% sale of UFG investment bank for $70m to Deutsche in 2004, and the remaining 60% for a reported $600m in 2006. Last year, Ryan and Fedorov collected about $65m following the sale of a 40% stake in UFG Asset Management to Deutsche.
Ryan told Financial News two years ago that his role of integrating the Russian economy with the west was “God’s work”.
Showing posts with label Charlie Ryan. Show all posts
Showing posts with label Charlie Ryan. Show all posts
Sunday, 17 May 2009
Tuesday, 16 September 2008
Partners make millions on sale of fund management stake
Dow Jones 'Wealth Bulletin'
Jason Corcoran in Moscow - 16 September 2008
Partners make millions on sale of fund management stake
Charlie Ryan and Boris Fedorov, co-founders of UFG Invest, will share about $65m with the Russian fund manager's managing partner following the sale last Thursday of a 40% stake to Deutsche Bank.
Former Russian finance minister Fedorov, Deutsche Bank Russia chairman Ryan, and UFG Invest managing partner Florian Fenner, together own 95% of UFG Invest. The remaining 5% of UFG Invest is owned by fund managers and staff.
Financial terms of the sale were not disclosed but a source close to UFG said the German bank had paid about $65 for the minority stake. UFG Invest and Deutsche Bank declined to comment on the price of the sale.
The deal comes just five years after Deutsche first looked at buying the operation for a fraction of that price during its approach for UFG Investment Bank.
Ryan and Fedorov also masterminded the 40% sale of UFG investment bank for $70m to Deutsche in 2004, and the remaining 60% for a reported $600m in 2006.
A source close to UFG told Wealth Bulletin: "Deutsche looked at buying UFG Invest at the same time as the investment banking deal. They decided the assets under management of $30m were too low to make an impact and they launched DWS instead. The outcome in today's equity markets makes Charlie Ryan look like a genius."
Deutsche is to combine UFG Invest with the Russian unit of its DWS Investments division. Artem Beresnev, acting chief executive of DWS Investments in Russia, is to relinquish his role following completion of the merger.
Beresnev had been acting head for a year following the departure of Elena Loginova to take charge of Pioneer Investments in Russia. A Deutsche Bank spokewoman said Beresnev would pursue other opportunities and it was too early to discuss other potential layoffs.
German national Fenner, who joined as managing partner in 2002, is to become chief executive of the combined Deutsche UFG Capital Management business.
DWS said it was unlikely the two fund ranges would be merged. Its investors will probably be asked to redeem and reinvest with UFG.
DWS manages $53m in four mutual funds while UFG runs $630m under management on behalf of 30,000 private investors, as well as pension and insurance funds.
As part of the deal, Deutsche has an option to purchase a 20% stake in UFG's offshore hedge fund business UFG Advisors.
The Russian retail fund management market has struggled to take off and redemptions have been high with stock markets tumbling 50% since May.
http://www.wealth-bulletin.com
Jason Corcoran in Moscow - 16 September 2008
Partners make millions on sale of fund management stake
Charlie Ryan and Boris Fedorov, co-founders of UFG Invest, will share about $65m with the Russian fund manager's managing partner following the sale last Thursday of a 40% stake to Deutsche Bank.
Former Russian finance minister Fedorov, Deutsche Bank Russia chairman Ryan, and UFG Invest managing partner Florian Fenner, together own 95% of UFG Invest. The remaining 5% of UFG Invest is owned by fund managers and staff.
Financial terms of the sale were not disclosed but a source close to UFG said the German bank had paid about $65 for the minority stake. UFG Invest and Deutsche Bank declined to comment on the price of the sale.
The deal comes just five years after Deutsche first looked at buying the operation for a fraction of that price during its approach for UFG Investment Bank.
Ryan and Fedorov also masterminded the 40% sale of UFG investment bank for $70m to Deutsche in 2004, and the remaining 60% for a reported $600m in 2006.
A source close to UFG told Wealth Bulletin: "Deutsche looked at buying UFG Invest at the same time as the investment banking deal. They decided the assets under management of $30m were too low to make an impact and they launched DWS instead. The outcome in today's equity markets makes Charlie Ryan look like a genius."
Deutsche is to combine UFG Invest with the Russian unit of its DWS Investments division. Artem Beresnev, acting chief executive of DWS Investments in Russia, is to relinquish his role following completion of the merger.
Beresnev had been acting head for a year following the departure of Elena Loginova to take charge of Pioneer Investments in Russia. A Deutsche Bank spokewoman said Beresnev would pursue other opportunities and it was too early to discuss other potential layoffs.
German national Fenner, who joined as managing partner in 2002, is to become chief executive of the combined Deutsche UFG Capital Management business.
DWS said it was unlikely the two fund ranges would be merged. Its investors will probably be asked to redeem and reinvest with UFG.
DWS manages $53m in four mutual funds while UFG runs $630m under management on behalf of 30,000 private investors, as well as pension and insurance funds.
As part of the deal, Deutsche has an option to purchase a 20% stake in UFG's offshore hedge fund business UFG Advisors.
The Russian retail fund management market has struggled to take off and redemptions have been high with stock markets tumbling 50% since May.
http://www.wealth-bulletin.com
Monday, 26 May 2008
Deutsche begins Russian fightback with Moscow hires
Financial News
Harry Wilson and Jason Corcoran in Moscow
20 May 2008 updated 20 May 2008 at 08:32 GMT
Deutsche Bank has made 15 hires, promotions and internal transfers to its Russian business as it moves to repair the damage to its Moscow office wrought by a wave of senior departures in recent months.
The German bank has hired 11 staff to fill gaps left in its investment banking business by the departure of several bankers to state-owned rival VTB, including five for its Moscow-based equity research business.
The hires come just months before a change of senior management in Deutsche Bank’s Moscow office, with Igor Lojevsky, formerly head of Dresdner Kleinwort’s Russian business, joining the bank to replace Charlie Ryan as chief country officer.
Deutsche today confirmed Ryan is set to give up his day-to-day duties at the bank and become chairman of the operation when Lojevsky joins the business in late August. Financial News first reported the news yesterday.
Mikhail Seleznev has been hired from Citigroup as co-head of equity research along with Jaroslov Lissovolik. Seleznev was previously a metals and mining analyst at Citigroup, while Lissovolik was already a senior analyst in Deutsche Bank’s Moscow office.
The bank has made four other hires for the research business, with Tatiana Kopoustina joining from Aton Capital, the Russian business of Italy’s UniCredit, to cover the oil and gas industry; Bob Kommers from UBS to cover industrials and banking; Igor Semenov from ING to cover telecoms; and Brady Martin from Moscow-based broker Alfa Bank to cover retailers.
Dalinc Ariburnu, global head of emerging markets in Deutsche Bank’s global market business, said: “The Deutsche Bank business in Moscow is one of our most important emerging markets franchises, and having lost quite a few staff recently we wanted to move quickly to fill the gaps left.”
Pavel Dimitriev head of debt capital markets at Dresdner Kleinwort in Russia has been hired to head Deutsche Bank’s corporate coverage business in Russia and will be responsible for the bank’s global markets marketing operation in the country.
Deutsche Bank has also promoted its head of corporate equity derivatives trading for Russia and the CIS, Batubay Ozkan, to head of debt trading for the region, as well as hiring Alex Ponomorenko, from a Los Angeles-based private equity firm to run its illiquid credit, private equity and real estate trading business.
Tim Wiswell and Jack Busta have been appointed to run equity sales and trading in Moscow. Busta was a senior derivatives trader in Deutsche Bank’s London office and will oversee equity derivatives trading in Russia, while Wiswell was a senior salesman in Moscow for the bank.
Additionally, David Johnson has joined the equity sales trading desk from Alfa Bank, while Sergei Suverov has joined the domestic equity sales team from Citigroup.
Alexey Bolshakov and Patrick Vebel join the general Russian equity sales team from DWS and Deutsche Asset Management respectively. Yassine Rhalib, a derivatives structuring banker in London, transfers to Moscow to cover derivatives sales to corporates.
The hires will not be the last Deutsche Bank makes for its Russian business and the bank said it will add more staff in its Moscow office soon as it continues the process of filling jobs left by departed staff.
Ariburnu said: “We have been carefully choosing who we want to hire and expect to announce more appointments over the next couple of weeks.”
www.efinancialnews.com
Harry Wilson and Jason Corcoran in Moscow
20 May 2008 updated 20 May 2008 at 08:32 GMT
Deutsche Bank has made 15 hires, promotions and internal transfers to its Russian business as it moves to repair the damage to its Moscow office wrought by a wave of senior departures in recent months.
The German bank has hired 11 staff to fill gaps left in its investment banking business by the departure of several bankers to state-owned rival VTB, including five for its Moscow-based equity research business.
The hires come just months before a change of senior management in Deutsche Bank’s Moscow office, with Igor Lojevsky, formerly head of Dresdner Kleinwort’s Russian business, joining the bank to replace Charlie Ryan as chief country officer.
Deutsche today confirmed Ryan is set to give up his day-to-day duties at the bank and become chairman of the operation when Lojevsky joins the business in late August. Financial News first reported the news yesterday.
Mikhail Seleznev has been hired from Citigroup as co-head of equity research along with Jaroslov Lissovolik. Seleznev was previously a metals and mining analyst at Citigroup, while Lissovolik was already a senior analyst in Deutsche Bank’s Moscow office.
The bank has made four other hires for the research business, with Tatiana Kopoustina joining from Aton Capital, the Russian business of Italy’s UniCredit, to cover the oil and gas industry; Bob Kommers from UBS to cover industrials and banking; Igor Semenov from ING to cover telecoms; and Brady Martin from Moscow-based broker Alfa Bank to cover retailers.
Dalinc Ariburnu, global head of emerging markets in Deutsche Bank’s global market business, said: “The Deutsche Bank business in Moscow is one of our most important emerging markets franchises, and having lost quite a few staff recently we wanted to move quickly to fill the gaps left.”
Pavel Dimitriev head of debt capital markets at Dresdner Kleinwort in Russia has been hired to head Deutsche Bank’s corporate coverage business in Russia and will be responsible for the bank’s global markets marketing operation in the country.
Deutsche Bank has also promoted its head of corporate equity derivatives trading for Russia and the CIS, Batubay Ozkan, to head of debt trading for the region, as well as hiring Alex Ponomorenko, from a Los Angeles-based private equity firm to run its illiquid credit, private equity and real estate trading business.
Tim Wiswell and Jack Busta have been appointed to run equity sales and trading in Moscow. Busta was a senior derivatives trader in Deutsche Bank’s London office and will oversee equity derivatives trading in Russia, while Wiswell was a senior salesman in Moscow for the bank.
Additionally, David Johnson has joined the equity sales trading desk from Alfa Bank, while Sergei Suverov has joined the domestic equity sales team from Citigroup.
Alexey Bolshakov and Patrick Vebel join the general Russian equity sales team from DWS and Deutsche Asset Management respectively. Yassine Rhalib, a derivatives structuring banker in London, transfers to Moscow to cover derivatives sales to corporates.
The hires will not be the last Deutsche Bank makes for its Russian business and the bank said it will add more staff in its Moscow office soon as it continues the process of filling jobs left by departed staff.
Ariburnu said: “We have been carefully choosing who we want to hire and expect to announce more appointments over the next couple of weeks.”
www.efinancialnews.com
Deutsche Bank names head for Russia
Financial News
Harry Wilson and Jason Corcoran in Moscow
19 May 2008
Deutsche Bank has ended months of speculation over the leadership of its Russian business by rehiring the former head of its sales and origination team in the country to run its Moscow office, as Charlie Ryan, the current head of the group, prepares to step back from running the operation.
Igor Lojevsky resigned on Friday as chairman of Dresdner Kleinwort’s Russian business to return to Deutsche Bank, only 13 months after he quit the firm to join its arch rival, which has been hit in recent months by a wave of senior defections.
He will join Deutsche Bank in August as chief country officer for Russia, replacing Ryan, who is the last remaining founder of United Financial Group, the Moscow-based broker the bank bought in 2005, to be working in the business.
Ryan will retain what one source described as an “honorary” title within the business.
It is hoped the hire of Lojevsky will draw a line under a series of departures from Deutsche Bank’s Moscow office, mainly to the nascent investment banking business of state-owned Russian bank VTB.
Yuri Soloviev, the deputy head of Deutsche Bank’s Russian business who was viewed as a potential successor to Ryan, quit to head VTB’s Moscow-based investment banking team in March.
He was followed by co-head of investment banking Dmitri Snesar, head of real estate and infrastructure, Victor Makshantsev, head of research Alexei Yakovitsky and chief strategist Alexei Zabotkin, as well as several other senior bankers.
Deutsche Bank has the largest Russian investment banking operation of any international bank, employing around 900 people in the country, making it an obvious hiring target for rivals looking to build their own businesses.
Deutsche Bank and Dresdner Kleinwort declined to comment
Harry Wilson and Jason Corcoran in Moscow
19 May 2008
Deutsche Bank has ended months of speculation over the leadership of its Russian business by rehiring the former head of its sales and origination team in the country to run its Moscow office, as Charlie Ryan, the current head of the group, prepares to step back from running the operation.
Igor Lojevsky resigned on Friday as chairman of Dresdner Kleinwort’s Russian business to return to Deutsche Bank, only 13 months after he quit the firm to join its arch rival, which has been hit in recent months by a wave of senior defections.
He will join Deutsche Bank in August as chief country officer for Russia, replacing Ryan, who is the last remaining founder of United Financial Group, the Moscow-based broker the bank bought in 2005, to be working in the business.
Ryan will retain what one source described as an “honorary” title within the business.
It is hoped the hire of Lojevsky will draw a line under a series of departures from Deutsche Bank’s Moscow office, mainly to the nascent investment banking business of state-owned Russian bank VTB.
Yuri Soloviev, the deputy head of Deutsche Bank’s Russian business who was viewed as a potential successor to Ryan, quit to head VTB’s Moscow-based investment banking team in March.
He was followed by co-head of investment banking Dmitri Snesar, head of real estate and infrastructure, Victor Makshantsev, head of research Alexei Yakovitsky and chief strategist Alexei Zabotkin, as well as several other senior bankers.
Deutsche Bank has the largest Russian investment banking operation of any international bank, employing around 900 people in the country, making it an obvious hiring target for rivals looking to build their own businesses.
Deutsche Bank and Dresdner Kleinwort declined to comment
Sunday, 20 April 2008
VTB stages fresh Russian raid on Deutsche Bank
Financial News
Jason Corcoran in Moscow
16 April 2008
Russia's second largest lender, VTB, has poached 10 bankers from Deutsche Bank in Russia in its second raid on the German institution's Moscow operation.
The bank, which is setting up its own investment banking arm in Moscow, London and Singapore, has recruited personnel for management roles and positions in fixed income, equity sales and research. VTB confirmed the hires, while Deutsche confirmed the departures.
Investment banking sources said Deutsche has been "fighting tooth and nail" to retain staff and had been successful in keeping some people who were believed to have been offered jobs by VTB. Bankers in Moscow suggested as many as 40 bankers were leaving.
"What's actually quite impressive is that Deutsche have fought back and have retained people but VTB virtually has a blank cheque book and they couldn't prevent a number going," said a banker.
Andrey Girichev, head of equity trading for Russia/CIS at Deutsche, joins VTB in Moscow as co-leader of its new equity sales operation.
Nikolai Donzov will become chief operating officer and Svetlana Fedorenko financial director.
Vitaly Buzoverya has been appointed as the co-leader of the department of commercial operations for fixed income products. He will be responsible for the activity on the global markets for capital in Russia and the CIS, including trade in currencies, interest rates, derivative tools, bonds and structured financing. Aleksey Ivanov has been hired as his deputy.
Alexey Yakovitsky, previously hired from Deutsche, has been named as head of research. His team includes three of his former colleagues.
Alexandr Pukhaev will head the analysis of the industrial sector of metallurgy and ore extraction. Dmitry Dmitriev will head the financial and fixed income sector.
Elena Sakhnova will head the coverage of the transport sector, machine building, chemical and construction sectors.
Also arriving from Deutsche are Ekaterina Barinova as director of human resources and Alexey Emilyanov as director of IT.
The resignations are the latest to hit Deutsche Bank. Last month it suffered high-profile resignations after deputy head of its Russian business, Yuri Soloviev, left for to state-owned VTB, along with Victor Makshantsev, head of real estate and infrastructure and Alexei Zabotkin, its chief strategist and Yakovitsky, its head of research.
Financial News revealed that Charlie Ryan, chief executive of Deutsche Bank in Russia and a co-founder of UFG, Deutsche Bank's Russian business, could also join the exodus when his contract expires in the autumn. Discussions on renewing his employment with the business are yet to get underway.
Ryan was one of the co-founders of UFG along with former Russian finance minister Boris Fedorov and Ilya Sherbovich, Deutsche's former head of investment banking in Russia, who left last year to found his own Moscow-based advisory and investment boutique.
Deutsche this month hired Alexander Pugovkin from Renaissance Capital as international sale trader and Sergey Suverov as senior equity sales director from Citibank.
A spokeswoman for VTB said it had so far hired 15 bankers from Deutsche.
Jason Corcoran in Moscow
16 April 2008
Russia's second largest lender, VTB, has poached 10 bankers from Deutsche Bank in Russia in its second raid on the German institution's Moscow operation.
The bank, which is setting up its own investment banking arm in Moscow, London and Singapore, has recruited personnel for management roles and positions in fixed income, equity sales and research. VTB confirmed the hires, while Deutsche confirmed the departures.
Investment banking sources said Deutsche has been "fighting tooth and nail" to retain staff and had been successful in keeping some people who were believed to have been offered jobs by VTB. Bankers in Moscow suggested as many as 40 bankers were leaving.
"What's actually quite impressive is that Deutsche have fought back and have retained people but VTB virtually has a blank cheque book and they couldn't prevent a number going," said a banker.
Andrey Girichev, head of equity trading for Russia/CIS at Deutsche, joins VTB in Moscow as co-leader of its new equity sales operation.
Nikolai Donzov will become chief operating officer and Svetlana Fedorenko financial director.
Vitaly Buzoverya has been appointed as the co-leader of the department of commercial operations for fixed income products. He will be responsible for the activity on the global markets for capital in Russia and the CIS, including trade in currencies, interest rates, derivative tools, bonds and structured financing. Aleksey Ivanov has been hired as his deputy.
Alexey Yakovitsky, previously hired from Deutsche, has been named as head of research. His team includes three of his former colleagues.
Alexandr Pukhaev will head the analysis of the industrial sector of metallurgy and ore extraction. Dmitry Dmitriev will head the financial and fixed income sector.
Elena Sakhnova will head the coverage of the transport sector, machine building, chemical and construction sectors.
Also arriving from Deutsche are Ekaterina Barinova as director of human resources and Alexey Emilyanov as director of IT.
The resignations are the latest to hit Deutsche Bank. Last month it suffered high-profile resignations after deputy head of its Russian business, Yuri Soloviev, left for to state-owned VTB, along with Victor Makshantsev, head of real estate and infrastructure and Alexei Zabotkin, its chief strategist and Yakovitsky, its head of research.
Financial News revealed that Charlie Ryan, chief executive of Deutsche Bank in Russia and a co-founder of UFG, Deutsche Bank's Russian business, could also join the exodus when his contract expires in the autumn. Discussions on renewing his employment with the business are yet to get underway.
Ryan was one of the co-founders of UFG along with former Russian finance minister Boris Fedorov and Ilya Sherbovich, Deutsche's former head of investment banking in Russia, who left last year to found his own Moscow-based advisory and investment boutique.
Deutsche this month hired Alexander Pugovkin from Renaissance Capital as international sale trader and Sergey Suverov as senior equity sales director from Citibank.
A spokeswoman for VTB said it had so far hired 15 bankers from Deutsche.
Monday, 31 March 2008
Deutsche hit by more Russian departures
Financial News
Jason Corcoran in Moscow and Harry Wilson
31 March 2008
Charlie Ryan, the chief executive and country head of Deutsche Bank in Russia, is expected to join the exodus from the German bank in Moscow when his contract expires in the autumn, according to Moscow market sources.
Ryan has been at the helm since Deutsche Bank bought a stake in UFG, the investment boutique he set up with former Russian finance minister Boris Fedorov, which was taken over by the bank for $700m (€443m) in 2004.
Plans to appoint Yuri Soloviev, the bank’s deputy head in Russia, as Ryan’s successor were thrown into disarray last week after he left to lead state-run bank VTB’s investment banking business.
Last week, VTB recruited four senior staff from Deutsche Bank’s Moscow office. Soloviev was joined by Deutsche’s head of real estate and infrastructure projects Victor Makshantsev, head of research Alexei Yakovitsky and chief strategist Alexei Zabotkin.
The bank was also hit by the resignation of Dmitri Snesar, co-head of investment banking in Russia, who left to join United Capital Partners, the Moscow-based investment boutique set up by Ilya Sherbovich, Deutsche’s former head of Russian investment banking, who left last year.
A source close to Deutsche Bank dismissed rumours that Andrew Chulack, who was left as sole head of investment banking following Snesar’s exit was also set to leave.
www.efinancialnews.com
Jason Corcoran in Moscow and Harry Wilson
31 March 2008
Charlie Ryan, the chief executive and country head of Deutsche Bank in Russia, is expected to join the exodus from the German bank in Moscow when his contract expires in the autumn, according to Moscow market sources.
Ryan has been at the helm since Deutsche Bank bought a stake in UFG, the investment boutique he set up with former Russian finance minister Boris Fedorov, which was taken over by the bank for $700m (€443m) in 2004.
Plans to appoint Yuri Soloviev, the bank’s deputy head in Russia, as Ryan’s successor were thrown into disarray last week after he left to lead state-run bank VTB’s investment banking business.
Last week, VTB recruited four senior staff from Deutsche Bank’s Moscow office. Soloviev was joined by Deutsche’s head of real estate and infrastructure projects Victor Makshantsev, head of research Alexei Yakovitsky and chief strategist Alexei Zabotkin.
The bank was also hit by the resignation of Dmitri Snesar, co-head of investment banking in Russia, who left to join United Capital Partners, the Moscow-based investment boutique set up by Ilya Sherbovich, Deutsche’s former head of Russian investment banking, who left last year.
A source close to Deutsche Bank dismissed rumours that Andrew Chulack, who was left as sole head of investment banking following Snesar’s exit was also set to leave.
www.efinancialnews.com
Sunday, 9 December 2007
Deutsche Bank retains lead in Russia's capital markets in 2007
Business New Europe
Jason Corcoran in Moscow
December 7, 2007
Deutsche Bank has retained its leading status in Russia's capital markets in 2007 despite being buffeted by the loss of key rainmakers and increased competition in Moscow from bulge-bracket banking rivals like Goldman Sachs and Lehman Brothers.
Deutsche, which has over 800 staff in Moscow, shed its UFG brand in October having completed the acquisition of the local brokerage late in 2006. The German bank's leading drummer-up of business in Russia, Nick Jordan, left for Lehman Brothers during the year and his investment banking co-head Ilya Sherbovich is winding down before he joins his own fledgling boutique United Capital Partners next year. Both Jordan and Sherbovich are bringing on board UFG staff to beef up their operations, but this has yet to affect Deutsche's standing in the capital markets tables.
According to data provider Thomson Financial, Deutsche is the leading equities bookrunner so far this year from its involvement in 10 issues worth over $5.3bn. Renaissance Capital is second from its share of 14 issues worth $4.3bn, while Citigroup completes the top trio with 4 issues worth $4bn. Deutsche, which has promoted internally to replace Jordan and Sherbovich, acted as joint global coordinator and bookrunner to VTB Bank in its $8bn IPO in May. It also organised offerings by the electricity suppliers OGK-2 and OGK-3 worth over $2bn and the recent flotation by real estate firm LSR worth $772m.
The head of Deutsche's Russian operations, Charlie Ryan, is nonplussed by Moscow's hiring war, which saw Ed Kaufman move from UBS to Alfa Bank for a guaranteed $15m over two years. "I have seen this movie before," he said earlier this year. "Moscow is not a get-rich scheme, because you need to have all the pieces of infrastructure in place like we do. A lot of our competitors are becoming increasingly desperate because they can't achieve scale. They are planning tennis without a net."
Returnees
This year saw the return to Moscow of Goldman, Lehman and Nomura, all of which fled in 1998 nursing losses from the financial crisis and the subsequent bond default. A boom in consumer spending, oil tilting towards $100 a barrel, a record number of IPOs and high economic growth are the main reasons drawing them back.
Goldman, the world's most profitable and respected investment bank, has made little inroads yet into the Russian market. The co-heads of its Russian operation both left for local firms during the year, with Gordon McCulloch heading for Renaissance and Magomed Galaev leaving to run an oligarch's investments. Goldman is fifth in Thomson's equity table, eighth in mergers and acquisitions, and 11th in debt capital markets; Lehman is nowhere.
Other Western banks already active in Russia, such as Merrill Lynch and JP Morgan, are desperately trying to build scale in an already saturated market. Merrill is fighting tooth and nail with JP Morgan for the top adviser crown on M&A involving Russian companies. Morgan Stanley is in third and Deutsche is fourth. Overall, Russian M&A activity has more than doubled this year to a record $127bn (€86.2bn), according to Thomson's figures.
JP Morgan, which was frustrated in its efforts to buy a local brokerage, snatched a team of 16 analysts, traders and institutional sales people from Russia's MDM Bank in July. Its Russian operation has maintained relationships with state-run entities and large corporations in Russia, acting as joint bookrunner last year on the $10.7bn flotation of Rosneft and was one of the two international placement agents for this year's $8.8bn listing by Sberbank.
Germany's Dresdner Kleinwort is trying to re-establish its leading position in equity capital market by hiring an additional 60 bankers. Dresdner has fallen out of the top 22 in Thomson's equity capital markets tables in the year to date after topping the poll in 2007 thanks to its joint-bookrunner mandates on the Rosneft and TMK IPOs. In M&A, Dresdner is 18th compared with its ninth position in 2006.
Dresdner has been rebuilding since the departure last year of Bob Foresman, head of the Moscow office, to Renaissance. Foresman subsequently hired six bankers from Dresdner. Matthias Warnig, former chairman of Dresdner's Russian business, also joined VTB's board ahead of its flotation although he remains involved on a part-time basis.
A surprise new entrant in the top five is St Petersburg's own KIT Finance, which worked on five deals worth over $19m. The up-and-coming bank has benefited from close links to a number of oligarchs and is plotting its own IPO for early next year.
In debt capital markets, the Western banks with big pockets retain a stranglehold at the top of the table. Dutch bank ABN AMRO, with 14 deals worth $3.7bn is just ahead of Citigroup while Deutsche Bank is third.
Jason Corcoran in Moscow
December 7, 2007
Deutsche Bank has retained its leading status in Russia's capital markets in 2007 despite being buffeted by the loss of key rainmakers and increased competition in Moscow from bulge-bracket banking rivals like Goldman Sachs and Lehman Brothers.
Deutsche, which has over 800 staff in Moscow, shed its UFG brand in October having completed the acquisition of the local brokerage late in 2006. The German bank's leading drummer-up of business in Russia, Nick Jordan, left for Lehman Brothers during the year and his investment banking co-head Ilya Sherbovich is winding down before he joins his own fledgling boutique United Capital Partners next year. Both Jordan and Sherbovich are bringing on board UFG staff to beef up their operations, but this has yet to affect Deutsche's standing in the capital markets tables.
According to data provider Thomson Financial, Deutsche is the leading equities bookrunner so far this year from its involvement in 10 issues worth over $5.3bn. Renaissance Capital is second from its share of 14 issues worth $4.3bn, while Citigroup completes the top trio with 4 issues worth $4bn. Deutsche, which has promoted internally to replace Jordan and Sherbovich, acted as joint global coordinator and bookrunner to VTB Bank in its $8bn IPO in May. It also organised offerings by the electricity suppliers OGK-2 and OGK-3 worth over $2bn and the recent flotation by real estate firm LSR worth $772m.
The head of Deutsche's Russian operations, Charlie Ryan, is nonplussed by Moscow's hiring war, which saw Ed Kaufman move from UBS to Alfa Bank for a guaranteed $15m over two years. "I have seen this movie before," he said earlier this year. "Moscow is not a get-rich scheme, because you need to have all the pieces of infrastructure in place like we do. A lot of our competitors are becoming increasingly desperate because they can't achieve scale. They are planning tennis without a net."
Returnees
This year saw the return to Moscow of Goldman, Lehman and Nomura, all of which fled in 1998 nursing losses from the financial crisis and the subsequent bond default. A boom in consumer spending, oil tilting towards $100 a barrel, a record number of IPOs and high economic growth are the main reasons drawing them back.
Goldman, the world's most profitable and respected investment bank, has made little inroads yet into the Russian market. The co-heads of its Russian operation both left for local firms during the year, with Gordon McCulloch heading for Renaissance and Magomed Galaev leaving to run an oligarch's investments. Goldman is fifth in Thomson's equity table, eighth in mergers and acquisitions, and 11th in debt capital markets; Lehman is nowhere.
Other Western banks already active in Russia, such as Merrill Lynch and JP Morgan, are desperately trying to build scale in an already saturated market. Merrill is fighting tooth and nail with JP Morgan for the top adviser crown on M&A involving Russian companies. Morgan Stanley is in third and Deutsche is fourth. Overall, Russian M&A activity has more than doubled this year to a record $127bn (€86.2bn), according to Thomson's figures.
JP Morgan, which was frustrated in its efforts to buy a local brokerage, snatched a team of 16 analysts, traders and institutional sales people from Russia's MDM Bank in July. Its Russian operation has maintained relationships with state-run entities and large corporations in Russia, acting as joint bookrunner last year on the $10.7bn flotation of Rosneft and was one of the two international placement agents for this year's $8.8bn listing by Sberbank.
Germany's Dresdner Kleinwort is trying to re-establish its leading position in equity capital market by hiring an additional 60 bankers. Dresdner has fallen out of the top 22 in Thomson's equity capital markets tables in the year to date after topping the poll in 2007 thanks to its joint-bookrunner mandates on the Rosneft and TMK IPOs. In M&A, Dresdner is 18th compared with its ninth position in 2006.
Dresdner has been rebuilding since the departure last year of Bob Foresman, head of the Moscow office, to Renaissance. Foresman subsequently hired six bankers from Dresdner. Matthias Warnig, former chairman of Dresdner's Russian business, also joined VTB's board ahead of its flotation although he remains involved on a part-time basis.
A surprise new entrant in the top five is St Petersburg's own KIT Finance, which worked on five deals worth over $19m. The up-and-coming bank has benefited from close links to a number of oligarchs and is plotting its own IPO for early next year.
In debt capital markets, the Western banks with big pockets retain a stranglehold at the top of the table. Dutch bank ABN AMRO, with 14 deals worth $3.7bn is just ahead of Citigroup while Deutsche Bank is third.
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