The yet-to-be-named M&A shop that’s about to make some noise
If you’ve ever been passed over for a promotion and found yourself out of work, try looking to Paul Taubman for motivation. The former co-head of Morgan Stanley‘s investment bank, who reportedly left the firm after being passed over for a promotion given to his biggest rival, is enjoying the last laugh.
A rainmaker with a bulky Rolodex, Taubman has been on a great run after essentially being forced into retirement in 2012. Following a bit of time off, Taubman decided to do some advisory work on his own. Based out of a friend’s law firm and without even employing a secretary, Taubman advised on two of the biggest M&A deals over the last year. He personally finished 11th on the 2013 league tables, ahead of several well-known banks.
Sensing opportunity, Taubman launched his own advisory boutique earlier this year and began hiring. Not surprising, every one of his new recruits has been poached from his former employer, Morgan Stanley. That must feel good.
Then, on Friday, private equity giant Blackstone announced that it is spinning off its advisory unit and combining its with Taubman’s new firm, PJT Partners. Taubman has been named the company’s chairman and chief executive officer. Not a bad two years.
The firm, which has yet to be named, looks poised for explosive growth. Blackstone is combining Taubman and his growing roster of Morgan Stanley alums with its own advisory business that has been stuck in neutral only because of the firm’s need to avoid conflicts of interest. Its dealings on the private equity side were preventing Blackstone’s M&A bankers from working on deals with both clients and rival private equity firms.
“Our folks were not getting hired by our competitors,” Joan Solotar, Blackstone’s head of external relations and strategy, told the Wall Street Journal. Now, as an independent enterprise, the yet-to-be-named M&A shop has no restrictions. And they have Taubman.
A Blackstone spokesperson declined to comment on the new company’s hiring plans, but it appears to be primed for growth. Hint: it will help if ‘Morgan Stanley’ is somewhere on your resume.
What Your MBA Will Make You By Industry (eFinancialCareers)
MBAs going into financial services get paid well, but not quite as much as business school grads entering other industries. But on the plus side, the industry offers more jobs to MBAs than any other.
An Easier Ride (eFinancialCareers)
Barclays has put together some guidelines for how senior bankers should be treating their junior brethren.
Breadsticks Are a Powerful Weapon (NY Post)
Remember that ridiculous 300-page presentation penned by an activist hedge fund that wanted massive changes made at Olive Garden, including granular suggestions like salting boiling water and adhering to a stricter breadstick policy? Well, it worked. Darden Restaurants, owner of the Olive Garden franchise, just dismissed its entire board of directors.
Fixed income traders likely eked out a quiet and much needed win during the third quarter when trading activity spiked. FICC revenue could be “comfortably higher” for Q3, but the turnaround may be temporary. The spike was mainly due to interest rate chatter and the volatility that ensued following the abrupt departure of Bill Gross from Pimco.
Proficiency in French a Plus (Bloomberg)
In the latest “sanctions ironically lead to hiring” news, UBS is on the lookout for private bankers to serve millionaires in France. The bank is facing allegations that it helped French clients evade taxes by allowing them to bank in Switzerland. Elsewhere, investment firms are outbidding each other for multi-asset managers in London.
Dick Fuld Back in the Headlines (WSJ)
Former Lehman Brothers CEO Richard Fuld is still kicking. He just advised on the sale of a national stock exchange, albeit one that was already closed.
Safety In Numbers (Business Insider)
A branch employee at Wells Fargo emailed Chief Executive John Stumpf asking for a $10,000 raise. He cc’d 200,000 other employees on the email.
Buzz Around the Office
Better Than a Non-Compete I Guess (Reuters)
A Noah's Ark-based theme park is being planned in Kentucky. Jobs are aplenty but there is one requirement: you need to sign a faith statement saying you believe in the biblical flood.
Quote of the Day: "Andreessen, he's screwed more people than Casanova, for Christ's sakes.” – billionaire investor Carl Icahn on eBay board member Marc Andreessen, who earlier in the week likened Icahn to an “evil Captain Kirk”