Wall Street Journal Europe
May 22, 2009
JASON CORCORAN
MOSCOW -- Goldman Sachs Group Inc.'s head of mergers and acquisitions for oil and gas in Russia has become the second senior executive this month to quit the bank's Moscow business, as resurgent rivals in the country start rehiring.
William Donovan is leaving Goldman Sachs to join Deutsche Bank AG in Russia for a similar role. Mr. Donovan joined Goldman Sachs in 2007 having spent more than seven years at U.S. brokerage AG Edwards, which is part of the Wells Fargo banking group.
Goldman trimmed its headcount in Russia by 10% last year after the financial crisis spread.
A spokesman for Deutsche Bank in Russia confirmed Mr. Donovan had joined recently to take up a similar position covering the energy sector. Deutsche Bank said it was "hiring selectively" and had never put a freeze in place unlike many other banks in Moscow.
However, investment-banking hiring has picked up in Moscow with Russia's VTB Capital, part of VTB Group, leading the way. Morgan Stanley, Nomura, Barclays PLC's investment-banking arm Barclays Capital and Troika Dialog are actively hiring or trying to fill selected positions, according to local headhunters who have been tapped for executive searches.
A Goldman Sachs spokeswoman in London couldn't be reached for comment.
Showing posts with label Deutsche Bank. Show all posts
Showing posts with label Deutsche Bank. Show all posts
Monday, 25 May 2009
Sunday, 17 May 2009
Ryan scales back Deutsche duties for VC firm
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”.
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”.
Sunday, 14 December 2008
Deutsche Bank cuts 30% of Russia global markets staff
Dow Jones Newswires and Financial News
Jason Corcoran in Moscow
08 December 2008
Deutsche Bank is cutting 30% of staff from its global markets division in Moscow where it has been the biggest and most successful bulge bracket bank during Russia's capital markets boom.
Up to 30% of its Moscow-based global markets staff are expected to lose their jobs, double the proportion of employees being cut across Deutsche Bank's global markets business as part of a worldwide redundancy programme.
Bankers working in sales, trading and research in Moscow were made redundant last week with more layoffs expected this week, according to two sources inside the bank.
One said: "We have been told 30% has been earmarked across the board." The second said: "Ten of the research guys have gone."
A Deutsche Bank spokesman in Moscow said the job losses represented 2% of its 950 workforce but declined to comment on potential job losses in other areas of the business.
A statement from Deutsche Bank said: "As part of a global restructuring programme in global markets, Deutsche Bank is making investments in several areas for 2009, including commodities, FX and cash equities. Also as part of the programme and based upon projected client activity, it is making redundancies in exotic structured products, credit origination and proprietary trading."
Last week, Deutsche Bank began cutting 900 jobs across its global markets division, representing 15% of the business's staff.
Moscow-based sources at the bank said the job losses last week were confined to the global markets division, which does not encompass capital markets or mergers and acquisitions.
Deutsche Bank has led the way in Moscow's capital markets since it bought a stake in the investment banking boutique United Financial Group in 2004 for $700m. It employs about 950 staff in Moscow.
The bank has consistently been in the top three for Russian debt and equity underwriting and merger and acquisition advisory work and has earned more investment banking fees from the country than any other bank since it defaulted on its domestic debt a decade ago.
More than 1,000 bankers have been cut in recent months by domestically-owned banks Troika Dialog, Renaissance Capital, Alfa-Bank and Uralsib.
Overseas banks have so far been slower to slash after many quit the Russian market following the 1998 financial crisis. UBS said it planned to increase staff. However, Goldman Sachs is cutting its Moscow-based employees by 10%.
Jason Corcoran in Moscow
08 December 2008
Deutsche Bank is cutting 30% of staff from its global markets division in Moscow where it has been the biggest and most successful bulge bracket bank during Russia's capital markets boom.
Up to 30% of its Moscow-based global markets staff are expected to lose their jobs, double the proportion of employees being cut across Deutsche Bank's global markets business as part of a worldwide redundancy programme.
Bankers working in sales, trading and research in Moscow were made redundant last week with more layoffs expected this week, according to two sources inside the bank.
One said: "We have been told 30% has been earmarked across the board." The second said: "Ten of the research guys have gone."
A Deutsche Bank spokesman in Moscow said the job losses represented 2% of its 950 workforce but declined to comment on potential job losses in other areas of the business.
A statement from Deutsche Bank said: "As part of a global restructuring programme in global markets, Deutsche Bank is making investments in several areas for 2009, including commodities, FX and cash equities. Also as part of the programme and based upon projected client activity, it is making redundancies in exotic structured products, credit origination and proprietary trading."
Last week, Deutsche Bank began cutting 900 jobs across its global markets division, representing 15% of the business's staff.
Moscow-based sources at the bank said the job losses last week were confined to the global markets division, which does not encompass capital markets or mergers and acquisitions.
Deutsche Bank has led the way in Moscow's capital markets since it bought a stake in the investment banking boutique United Financial Group in 2004 for $700m. It employs about 950 staff in Moscow.
The bank has consistently been in the top three for Russian debt and equity underwriting and merger and acquisition advisory work and has earned more investment banking fees from the country than any other bank since it defaulted on its domestic debt a decade ago.
More than 1,000 bankers have been cut in recent months by domestically-owned banks Troika Dialog, Renaissance Capital, Alfa-Bank and Uralsib.
Overseas banks have so far been slower to slash after many quit the Russian market following the 1998 financial crisis. UBS said it planned to increase staff. However, Goldman Sachs is cutting its Moscow-based employees by 10%.
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, 11 August 2008
Deutsche Bank emerges as top fee earner in Russia
Dow Jones: Financial News
Jason Corcoran in Moscow
11 Aug 2008
Deutsche Bank has earned more from investment banking fees in Russia in the 10 years since the country defaulted on its domestic debt than any other bank, according to data provider Dealogic. The bank has earned $509m (€336m) for its involvement in mergers and acquisitions, debt and equity capital markets work in the 10 years to the end of last month.
This is substantially more than the $359m earned by second-placed Morgan Stanley, which was just ahead of UBS, JP Morgan and Renaissance Capital, the highest-placed Russian bank.
However, Deutsche Bank has started to lose market share to its competitors over the past five years. Over the five years to the end of July it accounted for 12% of fees in Russia. The total fell to 9.2% in the 12 months to the end of last month.
Raids on its staff have increased over the past year and the bank was almost knocked off its perch as Merrill Lynch, JP Morgan and Renaissance Capital closed the gap.
Western banks such as Goldman Sachs and Lehman Brothers have returned to Moscow. Domestic brokerages Renaissance Capital and Troika Dialog have also gained ground, emerging as strong players in equity capital markets and corporate deals. Russia’s UFC Metropol has earned its first appearance in the top 10 fee earners over the past 12 months.
Russia devalued the rouble by 34% and defaulted on its domestic debt in mid-August 1998, crippling the economy. Deutsche Bank’s Russian subsidiary was established in April that year, four months before the crash. Germany was renowned for providing financial assistance to Russia following the crisis.
Deutsche Bank did not scale back its activities despite the debt crisis. It took a lead role in the resolution of disputes between Russia and international creditors.
Joerg Bongartz, chairman of the board of Deutsche Bank Russia, said: “We are absolutely committed to this market and have been active in Russia for 125 years.” Deutsche Bank was also the top bank in Russia over the past decade by value of deals worked on, according to data provider Thomson Reuters.
It has worked on almost 100 advisory and debt and equity markets deals worth $91bn over the 10 years and eight months from the start of 1998 to August 6 this year, according to Thomson Reuters.
Bongartz, who was working in Moscow in 1998, said: “After the crash, we recapitalised the business and developed in the directions of fixed income, corporate finance and transaction banking. We reallocated our workforce rather than lay people off.”
Deutsche Bank’s position in Russia was cemented by its acquisition of local broker UFG in a two-step deal for $700m. The German bank acquired 40% of UFG in 2003 and the remainder in 2006.
The bank employs about 1,000 bankers in Moscow and provides local and
international clients with corporate finance and advisory, sales and
trading services, as well as wealth management and asset management
services.
The defection of rainmaker Nick Jordan to Lehman Brothers and the
departure of UFG founder Ilya Sherbovich created trouble at the top.
This was exacerbated by raid on talent state run VTB, which has
recruited about 60 of Deutsche's bankers and analysts in the past 12
months.
Bongartz said the pool of talent is deep and can point to the return
of Igor Lojevsky this month from Dresdner Kleinwort to takeover as
country head from Charlie Ryan.
American Ryan, the last remaining co-founder of UFG and Deutsche's key
figurehead in Russia, is stepping back as chief executive and country
head to take up the chairman's role.
Jason Corcoran in Moscow
11 Aug 2008
Deutsche Bank has earned more from investment banking fees in Russia in the 10 years since the country defaulted on its domestic debt than any other bank, according to data provider Dealogic. The bank has earned $509m (€336m) for its involvement in mergers and acquisitions, debt and equity capital markets work in the 10 years to the end of last month.
This is substantially more than the $359m earned by second-placed Morgan Stanley, which was just ahead of UBS, JP Morgan and Renaissance Capital, the highest-placed Russian bank.
However, Deutsche Bank has started to lose market share to its competitors over the past five years. Over the five years to the end of July it accounted for 12% of fees in Russia. The total fell to 9.2% in the 12 months to the end of last month.
Raids on its staff have increased over the past year and the bank was almost knocked off its perch as Merrill Lynch, JP Morgan and Renaissance Capital closed the gap.
Western banks such as Goldman Sachs and Lehman Brothers have returned to Moscow. Domestic brokerages Renaissance Capital and Troika Dialog have also gained ground, emerging as strong players in equity capital markets and corporate deals. Russia’s UFC Metropol has earned its first appearance in the top 10 fee earners over the past 12 months.
Russia devalued the rouble by 34% and defaulted on its domestic debt in mid-August 1998, crippling the economy. Deutsche Bank’s Russian subsidiary was established in April that year, four months before the crash. Germany was renowned for providing financial assistance to Russia following the crisis.
Deutsche Bank did not scale back its activities despite the debt crisis. It took a lead role in the resolution of disputes between Russia and international creditors.
Joerg Bongartz, chairman of the board of Deutsche Bank Russia, said: “We are absolutely committed to this market and have been active in Russia for 125 years.” Deutsche Bank was also the top bank in Russia over the past decade by value of deals worked on, according to data provider Thomson Reuters.
It has worked on almost 100 advisory and debt and equity markets deals worth $91bn over the 10 years and eight months from the start of 1998 to August 6 this year, according to Thomson Reuters.
Bongartz, who was working in Moscow in 1998, said: “After the crash, we recapitalised the business and developed in the directions of fixed income, corporate finance and transaction banking. We reallocated our workforce rather than lay people off.”
Deutsche Bank’s position in Russia was cemented by its acquisition of local broker UFG in a two-step deal for $700m. The German bank acquired 40% of UFG in 2003 and the remainder in 2006.
The bank employs about 1,000 bankers in Moscow and provides local and
international clients with corporate finance and advisory, sales and
trading services, as well as wealth management and asset management
services.
The defection of rainmaker Nick Jordan to Lehman Brothers and the
departure of UFG founder Ilya Sherbovich created trouble at the top.
This was exacerbated by raid on talent state run VTB, which has
recruited about 60 of Deutsche's bankers and analysts in the past 12
months.
Bongartz said the pool of talent is deep and can point to the return
of Igor Lojevsky this month from Dresdner Kleinwort to takeover as
country head from Charlie Ryan.
American Ryan, the last remaining co-founder of UFG and Deutsche's key
figurehead in Russia, is stepping back as chief executive and country
head to take up the chairman's role.
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
Tuesday, 18 March 2008
Russian bank hires in Europe and Asia
Financial News
Jason Corcoran in Moscow
10 March 2008
Russian state-controlled bank VTB has hired senior western bankers before the launch of its subsidiary’s full investment banking services.
Nick Reilly, former global head of global operations in investment banking at Deutsche Bank, has joined as chief operating officer of VTB Europe and Peter Cardosa has joined as managing director of VTB Singapore from Deutsche's Asian business.
The board of directors has also been bolstered by former diplomat Anthony Loehnis and former Citigroup banker Julian Simmonds as non-executives.
Loehnis, who served in Moscow as a diplomat, is a former executive director of the Bank of England and a former vice-chairman of SG Warburg’s investment banking division. Simmonds was global head of foreign exchange and structured products businesses at Citigroup until retiring in 2005.
VTB is closing in on a high-profile appointment for the chief executive role of VTB Europe, the London-based investment banking business. The bank established its London office late in 2006 and received authorisation from UK regulators last year.
The business, with the working name of “Investment Banking 21st Century”, will have two main hubs in London and Moscow, along with staff in Singapore.
A spokeswoman for VTB said its growing London personnel were expecting to move into new offices on 14 Cornhill in September or October. The 6,360sq m space is double that of its King William Street offices and is sufficient for a trading floor.
Jason Corcoran in Moscow
10 March 2008
Russian state-controlled bank VTB has hired senior western bankers before the launch of its subsidiary’s full investment banking services.
Nick Reilly, former global head of global operations in investment banking at Deutsche Bank, has joined as chief operating officer of VTB Europe and Peter Cardosa has joined as managing director of VTB Singapore from Deutsche's Asian business.
The board of directors has also been bolstered by former diplomat Anthony Loehnis and former Citigroup banker Julian Simmonds as non-executives.
Loehnis, who served in Moscow as a diplomat, is a former executive director of the Bank of England and a former vice-chairman of SG Warburg’s investment banking division. Simmonds was global head of foreign exchange and structured products businesses at Citigroup until retiring in 2005.
VTB is closing in on a high-profile appointment for the chief executive role of VTB Europe, the London-based investment banking business. The bank established its London office late in 2006 and received authorisation from UK regulators last year.
The business, with the working name of “Investment Banking 21st Century”, will have two main hubs in London and Moscow, along with staff in Singapore.
A spokeswoman for VTB said its growing London personnel were expecting to move into new offices on 14 Cornhill in September or October. The 6,360sq m space is double that of its King William Street offices and is sufficient for a trading floor.
Monday, 25 February 2008
Senior executives leave Deutsche Bank in Moscow
Financial News
Jason Corcoran in Moscow
25 February 2008
Deutsche Bank’s head of equity sales in Russia, Ian Colville, and his colleague Maxim Achkasov have joined the exodus of senior staff from its Moscow operation.
Deutsche, the leading foreign investment bank in Moscow, has been hit by departures since co-investment banking head Nicholas Jordan left last March for Lehman Brothers.
Colville, who joined the group in 2003, is moving to a private equity fund, New Path Ventures. He will join former Deutsche colleague Michael Stein in Kiev while director of equity sales Achkasov is leaving for a buyside job.
Claus Korner, head of wealth management in Russia, left last month for Icelandic banking group Glitnir. Jordan’s former co-head Ilya Sherbovich is leaving to start an investment boutique. Other leading bankers have resigned to join rivals Dresdner Kleinwort, Citigroup, Morgan Stanley, Renaissance and Macquarie.
Deutsche retained its status as Thomson Financial’s leading equities bookrunner last year in Russia from its involvement in 10 issues worth more than $5.3bn (€3.57bn). The bank has opted to promote from within in response to the war on talent.
A spokeswoman for Deutsche in Moscow was unavailable.
Jason Corcoran in Moscow
25 February 2008
Deutsche Bank’s head of equity sales in Russia, Ian Colville, and his colleague Maxim Achkasov have joined the exodus of senior staff from its Moscow operation.
Deutsche, the leading foreign investment bank in Moscow, has been hit by departures since co-investment banking head Nicholas Jordan left last March for Lehman Brothers.
Colville, who joined the group in 2003, is moving to a private equity fund, New Path Ventures. He will join former Deutsche colleague Michael Stein in Kiev while director of equity sales Achkasov is leaving for a buyside job.
Claus Korner, head of wealth management in Russia, left last month for Icelandic banking group Glitnir. Jordan’s former co-head Ilya Sherbovich is leaving to start an investment boutique. Other leading bankers have resigned to join rivals Dresdner Kleinwort, Citigroup, Morgan Stanley, Renaissance and Macquarie.
Deutsche retained its status as Thomson Financial’s leading equities bookrunner last year in Russia from its involvement in 10 issues worth more than $5.3bn (€3.57bn). The bank has opted to promote from within in response to the war on talent.
A spokeswoman for Deutsche in Moscow was unavailable.
Monday, 28 January 2008
Russian wealth manager head leaves Deutsche Bank
Financial News
Jason Corcoran in Moscow
28 January 2008
Claus Korner, head of Deutsche Bank’s wealth management business in Russia, has left for Icelandic banking group Glitnir.
Korner, head of Deutsche Bank’s private wealth management since 2004, has been working in Russia and eastern European private banking and asset management since 1992.
He was a pioneer at Deutsche in attracting clients worth more than $1bn and proving wealthy Russians are prepared to invest their money onshore. Private banking group UBS and Credit Suisse have followed in Deutsche’s wake and set up operations in Moscow.
Other senior Deutsche staff in Moscow have resigned in the past year as the market for top Moscow bankers has become more competitive.
Russian rainmaker Nick Jordan left for Lehman Brothers and his investment banking co-head Ilya Sherbovich is leaving soon to start a boutique.
Glitnir, which is setting up corporate finance, brokerage and asset management in Moscow, is recruiting eight sales and marketing staff to its wealth management team, in addition to its four advisers.
Erkin Nusurov, former managing director for investments at Austria’s Raiffeisen Asset Management, has also joined as chief investment officer.
Raimo Valo, head of investment management for Russia, said Glitnir’s threshold for wealth clients will be about a third of its rivals.
Glitnir last year acquired Finland’s FIM Asset Management, which has a record of investing in Russia since 1997.
The group last year launched three rouble-denominated mutual funds – FIM Russian Equities, FIM Russian Portfolio and FIM Russian Bonds – which closely match other funds that invest in Russia.
Glitnir’s large and small-cap Russian funds have more than €500m ($733.79m) under management. As the Nordic region’s third-largest broker, Glitnir manages more than €8.5bn in assets under management in 46 funds.
www.efinancialnews.com
Jason Corcoran in Moscow
28 January 2008
Claus Korner, head of Deutsche Bank’s wealth management business in Russia, has left for Icelandic banking group Glitnir.
Korner, head of Deutsche Bank’s private wealth management since 2004, has been working in Russia and eastern European private banking and asset management since 1992.
He was a pioneer at Deutsche in attracting clients worth more than $1bn and proving wealthy Russians are prepared to invest their money onshore. Private banking group UBS and Credit Suisse have followed in Deutsche’s wake and set up operations in Moscow.
Other senior Deutsche staff in Moscow have resigned in the past year as the market for top Moscow bankers has become more competitive.
Russian rainmaker Nick Jordan left for Lehman Brothers and his investment banking co-head Ilya Sherbovich is leaving soon to start a boutique.
Glitnir, which is setting up corporate finance, brokerage and asset management in Moscow, is recruiting eight sales and marketing staff to its wealth management team, in addition to its four advisers.
Erkin Nusurov, former managing director for investments at Austria’s Raiffeisen Asset Management, has also joined as chief investment officer.
Raimo Valo, head of investment management for Russia, said Glitnir’s threshold for wealth clients will be about a third of its rivals.
Glitnir last year acquired Finland’s FIM Asset Management, which has a record of investing in Russia since 1997.
The group last year launched three rouble-denominated mutual funds – FIM Russian Equities, FIM Russian Portfolio and FIM Russian Bonds – which closely match other funds that invest in Russia.
Glitnir’s large and small-cap Russian funds have more than €500m ($733.79m) under management. As the Nordic region’s third-largest broker, Glitnir manages more than €8.5bn in assets under management in 46 funds.
www.efinancialnews.com
Friday, 21 December 2007
RenCap to double staff in Africa and Asia
Financial News
Jason Corcoran in Moscow
21 Dec 2007
Emerging markets investment bank Renaissance Capital aims to double the headcount in its African and central Asian operations next year to 260 bankers.
Renaissance, which set up shop in Africa earlier last year, is recruiting an additional 100 bankers for its sub-Saharan hub in Nigeria's Lagos and its offices in the Kenyan capital Nairobi.
The bank is also establishing a full service investment bank in Kazakhstan's financial capital Almaty as a launchpad into other central Asian markets such as Uzbekistan. Staffing in Almaty will be doubled to 60.
Karl Franzmann, global head of recruitment at Renaissance, said the bank required investment bankers, equity research analysts and sales and traders for its new markets.
He said: "We are going to look at how the downturn will affect the bulge bracket banks. They have made commitments before to emerging markets and then pulled out. There are a lot of experienced expatriates working in New York and London and they might be looking at their options to return home in a few months time."
Renaissance will run a global advertising campaign next week in the Wall Street Journal and the Financial Times.
Franzmann said the bank's main Russian business would grow by 25% next year. "In Russia the growth will be spread across investment banking, sales and trading, derivatives and research."
Peter Vanhecke, recently hired from Dresdner Kleinwort has been appointed to head up Renaissance's bank in Ukraine.
Renaissance is also opening another sales and distribution hub in either Singapore or Hong and expanding its New York office.
A London-based headhunter said some bulge-bracket banks like Credit Suisse and Deutsche Bank had already ring-fenced their emerging market operations to protect them in the event of job losses due to the US sub-prime crisis.
He said: "Emerging market operations are usually where heads start rolling first. Banks that haven't suffered from the credit crunch can leverage the relative weakness of other banks to build their platforms."
Senior Moscow bankers suggested Lehman Brothers might be most vulnerable in Moscow to cuts. "They have struggled to gain scale and Dick Fuld isn't very keen on Russia anyway," said one.
Jason Corcoran in Moscow
21 Dec 2007
Emerging markets investment bank Renaissance Capital aims to double the headcount in its African and central Asian operations next year to 260 bankers.
Renaissance, which set up shop in Africa earlier last year, is recruiting an additional 100 bankers for its sub-Saharan hub in Nigeria's Lagos and its offices in the Kenyan capital Nairobi.
The bank is also establishing a full service investment bank in Kazakhstan's financial capital Almaty as a launchpad into other central Asian markets such as Uzbekistan. Staffing in Almaty will be doubled to 60.
Karl Franzmann, global head of recruitment at Renaissance, said the bank required investment bankers, equity research analysts and sales and traders for its new markets.
He said: "We are going to look at how the downturn will affect the bulge bracket banks. They have made commitments before to emerging markets and then pulled out. There are a lot of experienced expatriates working in New York and London and they might be looking at their options to return home in a few months time."
Renaissance will run a global advertising campaign next week in the Wall Street Journal and the Financial Times.
Franzmann said the bank's main Russian business would grow by 25% next year. "In Russia the growth will be spread across investment banking, sales and trading, derivatives and research."
Peter Vanhecke, recently hired from Dresdner Kleinwort has been appointed to head up Renaissance's bank in Ukraine.
Renaissance is also opening another sales and distribution hub in either Singapore or Hong and expanding its New York office.
A London-based headhunter said some bulge-bracket banks like Credit Suisse and Deutsche Bank had already ring-fenced their emerging market operations to protect them in the event of job losses due to the US sub-prime crisis.
He said: "Emerging market operations are usually where heads start rolling first. Banks that haven't suffered from the credit crunch can leverage the relative weakness of other banks to build their platforms."
Senior Moscow bankers suggested Lehman Brothers might be most vulnerable in Moscow to cuts. "They have struggled to gain scale and Dick Fuld isn't very keen on Russia anyway," said one.
Monday, 17 December 2007
Staff the winners as banks race for talent in Russia
OFinancial News
Jason Corcoran
17 December 2007
Political unrest continued to play havoc with deals
Charles Ryan, Deutsche Bank: A lot of our competitors are becoming increasingly desperate because they can’t achieve scale
A war for investment banking talent in Moscow during the past year led a senior executive at Deutsche Bank in Russia to compare the hiring spree with “a French farce”.
Competition between bulge brackets and domestic banks to sign Russia’s leading rainmakers resulted in remuneration packages comparable with those of footballers. Ed Kaufman is reputed to have been lured from UBS, where he was head of Russia, to become chief executive of investment banking at Alfa Bank by a guarantee of $20m (€13.6m) over two years while managing directors can net an average $3m pay packet, according to research by US publisher Forbes.
A boom in consumer spending, oil tilting towards $100 a barrel, record numbers of initial public offerings and a high growth rate spurred the scramble for talent.
Deutsche’s Russian operation, under chief executive Charles Ryan, has been hit by more defections than most. Its top Russian rainmaker Nick Jordan left for Lehman Brothers and his investment banking co-head Ilya Sherbovich is quitting next year to start a boutique. Several colleagues followed in their wake.
Ryan, whose contract expires next year, is nonplussed by the comings and goings. He said the bank continued to rank high in the capital markets league tables.
He said: “I have seen this movie before. 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 desperate because they can’t achieve scale. They are playing tennis without a net.”
Goldman Sachs, Lehman Brothers and Nomura returned to the country this year having fled after the 1998 financial crisis. The entrants have yet to make an impression on the league tables, where Deutsche, Merrill Lynch, ABN Amro, JP Morgan and Russia’s Renaissance Capital dominate. Russia’s much-anticipated IPO boom petered out in the autumn thanks to a combination of the credit crunch and investor apprehension ahead of the political elections.
Politicians and bullish analysts had forecast tens of IPOs for every quarter of the year, but the summer listings of state-controlled banks VTB and Sberbank – and their subsequent poor performance – sapped liquidity and investor appetite.
Chris Weafer, chief strategist at Uralsib, predicts total IPO business will reach $40bn in 2007, compared with $33bn last year. He said: “It wasn’t quite the big banner year many people expected.”
The US sub-prime problems sparked a sell-off in emerging markets and led to Russian IPOs being postponed during the final quarter.
Rusal, the world’s largest aluminium producer, pulled its $9bn London flotation in late September and was followed by several others, including Zenit Bank, Prosperity Capital and X5 Retail.
Igor Lojevsky, head of global banking and capital markets for Russia at Dresdner Kleinwort, said: “There was supposed to be a flood of institutions coming to the market this year but it didn’t really happen. Institutions have been distracted by the credit crunch, with many Russian companies putting off capital-raising plans since the end of September.”
The arrest of Deputy Finance Minister Sergei Storchak last month on charges of attempting to embezzle $43m raised the question of whether there is a serious rift between Kremlin factions about economic policy.
Storchak, who is allied to the Finance Minister Alexei Kudrin, is responsible for the country’s stabilisation fund and some think his arrest might be connected to the debate about how to invest oil reserves.
Kudrin supports an approach similar to that of Norway’s future generations fund, while it appears the Kremlin’s statists think all the money should be made available for spending on infrastructure and to develop strategic industries.
Weafer said: “I hope it’s not an attack on Kudrin. He and his allies are seen as a stabilising pro-market force. Any suggestion that he is under attack is bad news for the economy.”
The blurring of lines between politics and business was made explicit when two oil companies, Royal Dutch Shell and BP, ceded control of assets in Russia following pressure from the Kremlin. Shell was forced to cede control in Sakhalin-2, the world’s biggest liquefied natural gas project, to gas monopoly Gazprom, while TNK-BP had to sell its giant Kovykta gas field to Gazprom.
The case of beleaguered oil company RussNeft had echoes of Yukos, which ceased to exist from November following the carve-up of its assets during the summer and the continued incarceration of its former owner Mikhail Khodorkovsky in Siberia on tax evasion charges.
RussNeft’s owner Mikhail Gutseriyev fled the country for London, claiming he was the victim of political persecution. His private company, once the country’s seventh-largest petroleum producer, was saddled with back-tax charges and was seized by a court.
Oligarch Oleg Deripaska looks set to be the benefactor of Gutseriyev’s misfortune, having applied to the anti-monopoly service to acquire RussNeft’s assets.
Deripaska, whose estimated $20bn fortune includes Rusal, one of the world’s largest aluminium companies, is Russia’s leading dealmaker of the year.
Rusal was formed this year through a three-way merger of Russian Aluminum, Sual and the alumina assets of Swiss trader Glencore.
Deripaska also emerged as a 5% shareholder in US carmaker General Motors while his investment vehicle took a 20% stake in Canadian car manufacturer Magna and sizeable stakes in European construction companies Strabag and Hochtief.
Rusal looks set to acquire a blocking stake in Norilsk Nickel, the world’s largest nickel and palladium producer, in a deal that could create a Russian national champion in the metals sector with a market value of $100bn.
Deripaska, a former Soviet army sergeant with close ties to President Vladimir Putin, still appears to be serving his country. He alarmed investors this year when he declared himself as little more than a caretaker of assets for the state.
Jason Corcoran
17 December 2007
Political unrest continued to play havoc with deals
Charles Ryan, Deutsche Bank: A lot of our competitors are becoming increasingly desperate because they can’t achieve scale
A war for investment banking talent in Moscow during the past year led a senior executive at Deutsche Bank in Russia to compare the hiring spree with “a French farce”.
Competition between bulge brackets and domestic banks to sign Russia’s leading rainmakers resulted in remuneration packages comparable with those of footballers. Ed Kaufman is reputed to have been lured from UBS, where he was head of Russia, to become chief executive of investment banking at Alfa Bank by a guarantee of $20m (€13.6m) over two years while managing directors can net an average $3m pay packet, according to research by US publisher Forbes.
A boom in consumer spending, oil tilting towards $100 a barrel, record numbers of initial public offerings and a high growth rate spurred the scramble for talent.
Deutsche’s Russian operation, under chief executive Charles Ryan, has been hit by more defections than most. Its top Russian rainmaker Nick Jordan left for Lehman Brothers and his investment banking co-head Ilya Sherbovich is quitting next year to start a boutique. Several colleagues followed in their wake.
Ryan, whose contract expires next year, is nonplussed by the comings and goings. He said the bank continued to rank high in the capital markets league tables.
He said: “I have seen this movie before. 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 desperate because they can’t achieve scale. They are playing tennis without a net.”
Goldman Sachs, Lehman Brothers and Nomura returned to the country this year having fled after the 1998 financial crisis. The entrants have yet to make an impression on the league tables, where Deutsche, Merrill Lynch, ABN Amro, JP Morgan and Russia’s Renaissance Capital dominate. Russia’s much-anticipated IPO boom petered out in the autumn thanks to a combination of the credit crunch and investor apprehension ahead of the political elections.
Politicians and bullish analysts had forecast tens of IPOs for every quarter of the year, but the summer listings of state-controlled banks VTB and Sberbank – and their subsequent poor performance – sapped liquidity and investor appetite.
Chris Weafer, chief strategist at Uralsib, predicts total IPO business will reach $40bn in 2007, compared with $33bn last year. He said: “It wasn’t quite the big banner year many people expected.”
The US sub-prime problems sparked a sell-off in emerging markets and led to Russian IPOs being postponed during the final quarter.
Rusal, the world’s largest aluminium producer, pulled its $9bn London flotation in late September and was followed by several others, including Zenit Bank, Prosperity Capital and X5 Retail.
Igor Lojevsky, head of global banking and capital markets for Russia at Dresdner Kleinwort, said: “There was supposed to be a flood of institutions coming to the market this year but it didn’t really happen. Institutions have been distracted by the credit crunch, with many Russian companies putting off capital-raising plans since the end of September.”
The arrest of Deputy Finance Minister Sergei Storchak last month on charges of attempting to embezzle $43m raised the question of whether there is a serious rift between Kremlin factions about economic policy.
Storchak, who is allied to the Finance Minister Alexei Kudrin, is responsible for the country’s stabilisation fund and some think his arrest might be connected to the debate about how to invest oil reserves.
Kudrin supports an approach similar to that of Norway’s future generations fund, while it appears the Kremlin’s statists think all the money should be made available for spending on infrastructure and to develop strategic industries.
Weafer said: “I hope it’s not an attack on Kudrin. He and his allies are seen as a stabilising pro-market force. Any suggestion that he is under attack is bad news for the economy.”
The blurring of lines between politics and business was made explicit when two oil companies, Royal Dutch Shell and BP, ceded control of assets in Russia following pressure from the Kremlin. Shell was forced to cede control in Sakhalin-2, the world’s biggest liquefied natural gas project, to gas monopoly Gazprom, while TNK-BP had to sell its giant Kovykta gas field to Gazprom.
The case of beleaguered oil company RussNeft had echoes of Yukos, which ceased to exist from November following the carve-up of its assets during the summer and the continued incarceration of its former owner Mikhail Khodorkovsky in Siberia on tax evasion charges.
RussNeft’s owner Mikhail Gutseriyev fled the country for London, claiming he was the victim of political persecution. His private company, once the country’s seventh-largest petroleum producer, was saddled with back-tax charges and was seized by a court.
Oligarch Oleg Deripaska looks set to be the benefactor of Gutseriyev’s misfortune, having applied to the anti-monopoly service to acquire RussNeft’s assets.
Deripaska, whose estimated $20bn fortune includes Rusal, one of the world’s largest aluminium companies, is Russia’s leading dealmaker of the year.
Rusal was formed this year through a three-way merger of Russian Aluminum, Sual and the alumina assets of Swiss trader Glencore.
Deripaska also emerged as a 5% shareholder in US carmaker General Motors while his investment vehicle took a 20% stake in Canadian car manufacturer Magna and sizeable stakes in European construction companies Strabag and Hochtief.
Rusal looks set to acquire a blocking stake in Norilsk Nickel, the world’s largest nickel and palladium producer, in a deal that could create a Russian national champion in the metals sector with a market value of $100bn.
Deripaska, a former Soviet army sergeant with close ties to President Vladimir Putin, still appears to be serving his country. He alarmed investors this year when he declared himself as little more than a caretaker of assets for the state.
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.
Monday, 25 June 2007
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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