The Changing Scene: Rothschild Beefs Up Operations

Rothschild Group, the storied European investment bank, announced in January the selection of veteran investment banker and m&a practitioner Gerald Rosenfeld, 53, to head up its North American operations. Rosenfeld, who took over as CEO at Rothschild North America Inc. on Feb. 1, said, “Our objective is to increase our North American business.” He added that the group wants to do more m&a advisory and private investing activities in North America. There are also plans to increase the New York staff beyond its current 200 or so members. He said the firm plans to raise additional pools of capital for private-equity investing along the lines of competitors Evercore Partners and Greenhill & Co., two high-profile corporate restructuring boutiques. The incoming Rothschild chief said that in some ways investment banking is a simple business because it is built on relationships. “We will focus on high-level m&a, advising on both domestic and cross-border deals.” One benefit for companies choosing to use boutique m&a shops is the lack of potential conflicts that sometimes arise when working with the larger banks, he added. Rosenfeld said Rothschild plans to leverage its European contacts as Eurozone companies attempt to expand in North America. Underlying this strategy is his belief that European m&a should experience another banner year. “You have a tremendous wave of restructuring going on there.” Rothschild European clients include France Telecom SA and British Telecommunications PLC. In a reverse strategy, Rosenfeld said he expects the growing strength of the North American Rothschild franchise to aid in setting up cross-border deals in which U.S. companies are trying to establish a foothold in Europe. As far as potential defining trends on the domestic m&a market this year, he pointed to the end of pooling-of-interest accounting as a noteworthy event. “It’s going to change how valuations work, and it will be interesting to see how goodwill is valued under purchase accounting.” When asked about the potential of Rothschild changing its structure, Rosenfeld said it was unlikely. While noting that Goldman, Sachs Group shifted from its partnership model last year, he said that Rothschild, a privately held, family-owned business, would remain a partnership. Rosenfeld, who is taking the helm of a company whose deals include financing Napoleon’s opponents, began his finance career as a McKinsey & Co. consultant in 1976. Three years later he jumped to Salomon Brothers, where he spent nine years. Rosenfeld spent part of his time at Salomon working in m&a, and he eventually became the CFO of the Wall Street firm. Stints at Bankers Trust Corp., Lazard Freres & Co., and BankAmerica Securities followed, and, most recently, he ran his own company, Gerald Rosenfeld & Co. He also serves as a director of N.M. Rothschild and as general partner of Rothschild & Cie. Service Appointments Barclays Capital – The firm appointed Nicholas Daifotis as head of its newly formed financial sponsors group in the U.S. Creation of this new area is the direct result of the company’s continuing dedication to leveraged finance and its successful financial sponsor effort in Europe. Bear Stearns & Co. – Henry Tsang, the newly named president of Bear Stearns Asia Ltd., will lead the firm’s businesses in Hong Kong, Beijing, Shanghai, and Singapore. Berkshire Partners LLC Berkshire, an active investor in the private-equity market, announced that Ross M. Jones, Randy Peeler, and Robert J. Small have become managing directors of the firm. Clayton, Dubilier & Rice – Benedikt von Schroder, a former managing director of Morgan Stanley Dean Witter in Frankfurt, joined the firm as a principal and will open an office in Germany and will help build and manage the firm’s activities there and throughout Europe. Cruttenden Roth Inc. – Grant Garbers, William Shaw, Howard Fletcher, and Carolyn Powell, former principals of the Access Group, a private investment banking firm specializing in m&a, have joined Cruttenden Roth. Garbers and Shaw joined as managing directors, Fletcher joined as a principal, and Powell joined as a VP. Dain Rauscher Inc. – The company has named Nikki Sorum as its director of strategic planning and corporate development. Deutsche Banc Alex. Brown – The firm appointed George Stamas as its new vice chairman and managing director of the Mid-Atlantic region of Deutsche Banc’s global investment banking division. Also, Stephen M. Miller has joined the company as managing director and head of equities customer merger risk arbitrage trading. Dewey Ballantine LLP – Doug Getter, an m&a specialist, has been transferred to the London office of this international law firm. Its m&a practice, which has been consistently ranked among the top five in the U.S. in the past decade, is expected to expand significantly in Europe as a result of this move. Dorsey & Whitney – Matthew Knopf has joined the firm as a partner in its m&a practice. Knopf, who most recently had been counsel at Skadden Arps in New York, has extensive experience in m&a and corporate finance. First Union Securities – Stephen E. Cummings and W. Barnes Hauptfuher have been named to jointly run the capital markets division of First Union. Additionally, Schuyler (Skip) Grow has been promoted to head of telecommunications investment banking, an important strategic business for First Union. Greenhill & Co. – Robert Niehaus has joined the firm as a managing director and chairman of the firm’s new private-equity fund, Greenhill Capital Partners LLC. Greenhill is an m&a and private-equity boutique. Highland Capital Partners – Sean Dalton and Jo Tango were promoted to general partners of Highland, a venture capital firm that specializes in Internet, E-commerce, communications information technology, and medical companies. Houlihan Lokey Howard & Zukin – Company-wide new appointments include the promotions of Ben Buettell, Jerry Grossman, and both Lee Shepard and Matthew Venturi, to managing directors in the Chicago, Washington, D.C., and San Francisco offices, respectively. David Barnes, David Herman, Jeffrey McKenzie, Evan Moore, and Wayne Platt were named directors of the Los Angeles office. David Hilty was named a director in the firm’s New York office. Other promotions include: Lindsey Alley, Kevin Cross, Alan Fragen, Karen Miles, Joseph Miller, and Todd Strassman, all SVPs, Los Angeles; Bradley Robins, Andrew Torgove, and Derron Slonecker, SVPs, New York; Mark Francis and Jeffrey Phillips, SVPs, Chicago; Robert Kipps, SVP, Washington, D.C. ING Barings – Ivan Lustig, who joined ING as managing director, will head the firm’s media corporate and institutional finance operations, including m&a advisory, public- and private-equity and debt financing, and senior loan financing. Lazard Freres & Co. Pehr Gyllenham-mer became a managing director of the company and now oversees the development of the firm’s global business. Legg Mason Wood Walker Inc. – The company has named Thomas P. Mulroy as EVP and head of equity capital markets. Lehman Brothers Inc. – Newly hired Rod Cantrill and Matthew Taylor will cover the firm’s European chemical sector in investment banking. March & McLennan Cos. – Hans Erik Andersson has assumed the dual role of chairman of the Nordic region for both Marsh & McLennan and Marsh Europe, the firm’s risk and insurance services unit in Europe. Merrill Lynch & Co. – Joseph M. Schell has joined the firm as head of global technology investment banking. J.P. Morgan & Co. – Jeff van Steenbergen and Tim Hart, experienced investment bankers in the Canadian and global energy sectors, joined the firm in January and are establishing a Calgary office. Questor Management Co. – David M. Wathen assumed the role of general partner and principal of the private equity firm, which specializes in turn-arounds. Wathen had conducted difficult turnarounds of underperforming units of some of the top companies in the country. Warburg Dillon Read – The company announced that its chairman, Franklin (Fritz) Hobbs, would step down in March and would be succeeded by chief executive Markus Granziol. Wellesley – Wellesley, an m&a consulting firm specializing in the solid waste, energy, and transportation sectors, has recently promoted two key executives. Keith Moody, formerly president, has become chairman and CEO, and Thomas San Giacomo, who had been EVP, now serves as president and COO. Willkie Farr & Gallagher – Leading m&a attorney Laurent Faugerolas joined the Paris office of Willkie Farr as a partner. Faugerolas’ expertise includes hostile and friendly m&a transactions and joint ventures. Corporate Appointments AirNet Express – Wynn Peterson, CFA, has been named VP of corporate development of AirNet Express, the transportation network of AirNet Systems Inc. American Airlines Inc. – James A. Beer joined the company as VP of corporate development and treasurer. Ashland Distribution & Specialty Chemicals Co. – David H. Armstrong was newly named VP of planning and development and will be responsible for m&a and strategic planning. ASIC Alliance Corp. – This leading supplier of design and verification consulting services appointed Craig Marrow to the position of VP of corporate development. Bigfoot Interactive – William H. Mitchell, the new CFO of Bigfoot, will be responsible for all finance and corporate development activities of this e-mail marketing services company. Budget Group Inc. – Neal S. Cohen has assumed the role of EVP and CFO and, among other responsibilities, will oversee acquisitions and divestitures. Capitol Bancorp Ltd. – Michael M. Moran, former managing director of Financial Institutions Equity Research, has joined this Michigan-based financial services company as EVP of corporate development. Churchill Downs Inc. – Jim Gates Jr., formerly director of development at this leading horseracing company, has been promoted to VP of development. He will continue to oversee the company’s acquisition efforts. Cox Enterprises Inc. – Robert C. O’Leary, former SVP and CFO, recently was promoted to EVP and CFO. He will be involved in various operating functions and acquisitions. Additionally, at Cox Broadcasting Inc., a unit, Neil Johnston has become VP of development and will pursue acquisitions and investments for the company. DataChannel Inc. – A. James Beach was named CFO and VP of corporate development at DataChannel, an enterprise information portal. ebaseOne Corp. – Mike Sooley, the new SVP of worldwide business development, will lead the company’s strategic partnership and m&a initiatives. ebaseOne provides business software via the Internet. EC Co. – Former Wilson Sonsini Goodrich & Rosati attorney Jason Wacha has become VP of corporate and legal affairs and general counsel. In this capacity he will provide legal counsel on m&a and other corporate matters. Previously he spent seven years at WSG&R, focusing on securities, financing, and m&a representation for high-tech and biotech companies. Palo Alto, Calif.-based EC provides e-commerce services. Equant – Matthew Macfarlane has been appointed head of Equant’s m&a activities. He will be based in London. The Atlanta-based company is a provider of managed data network services. Equifax – Michael Shannon, former SVP and group controller of Equifax North America Information Services Group, was named SVP-mergers, acquisitions, and international development. FreeShop.com Inc. – To help drive its acquisition strategy, the company recently announced two key appointments to its senior management team. Ray Goodman joins the company as VP of strategic development, and Dave Davis joins as general counsel. Gaylord Entertainment Co. – Carl Kornmeyer, named to the new position of SVP of corporate development, will focus on m&a, financing, and strategic planning. Gold Circle Entertainment Inc./Waitte Media – John S. Schuele has been promoted to the position of SVP of Gold Circle and Waitte Media. He will also retain his title of CFO and treasurer and will continue to oversee financing and m&a activities. Grub & Ellis Co. – Brian D. Parker, who had been CFO at this commercial real estate firm, was named to the new position of EVP of business development. In the new job, he will be responsible for pursuing business opportunities, including m&a. M.A. Hanna Co. – In a realignment of its management team, Garth W. Henry, EVP of worldwide plastics and international operations, will focus solely on the company’s international activities and will be responsible for expanding M.A. Hanna’s presence in emerging markets and actively supporting its global m&a program. Holiday RV Superstores Inc. – Holiday RV announced the appointments of Ronald G. Huneycutt and Gary Rodney, well-known for their experience in m&a and in developing markets, as president and CEO and CFO, respectively. Huneycutt most recently had been SVP of m&a and a director of Holiday RV. Previously he served as CFO of Atlas Recreational Holdings Inc., which acquired Holiday RV last July. Rodney joined the company from Command Software Systems Inc., where he was CFO. Holiday RV operates recreational vehicle and boat dealerships. Imation Corp. – Karen Beadie has been named to the newly created position of VP of corporate development. She comes to Imation from Honeywell Inc., where she most recently was VP of m&a. Kinder Morgan Inc. – David Dehaemers moved from the position of CFO to that of VP of corporate development at the energy company, in which capacity he will help lead the company’s aggressive acquisition strategy. KV Pharmaceutical Co. – Further strengthening its corporate development team, KV named Alan Johnson to the newly created position of SVP of corporate growth and strategic development, in which capacity he will oversee KV’s acquisition program. Limitrader Securities Inc. – Douglas Banbury, recently named to the new position of managing director of business development and strategic alliances, will spearhead the company’s initiatives in content and distribution relationships and acquisitions and joint ventures. Lowestfare.com – Steve Druckman, Lowestfare.com’s new senior director of business development, will drive the acquisition, alliance, and other growth efforts of the discount travel services company. MGC Communications Inc. – Former Goldman, Sachs banker S. Gregory Clevenger was named SVP of corporate development of MGC, provider of facilities-based, integrated communications services. As a former VP of Goldman, Clevenger led teams executing m&a deals in the telecom, media, and entertainment industries, including SBC Communications Inc.’s acquisition of Ameritech Corp., in which the firm acted as Ameritech’s sole adviser. Modem Media – William Zierolf has assumed the post of SVP of corporate business development, in which capacity he will focus on acquisitions, joint ventures, and licensing and partnership agreements. Norwalk, Conn.-based Modem Media is a builder and marketer of “Me-business” services, a customer-focused approach to Internet business. Net Perceptions Inc. – Paul Musselman, a former member of Intel Corp.’s business development team, joined Net Perceptions as VP of new business development and will be responsible for driving the company’s m&a activity. Oracle Corp. – Matt Mosman has been promoted to SVP of corporate development at Oracle. Since joining the company in 1996, Mosman has overseen the company’s m&a efforts. He now adds to his duties responsibility for corporate development, joint-ventures, spin-offs, and technology licensing and for Oracle’s venture fund. Paravant Inc. – William R. Craven has been promoted to president and to the new position of COO of Paravant, a defense electronics and communications company. Reporting to James Clifford, Paravant’s VP of m&a, he will be actively involved in the company’s acquisition efforts. Park Electromechanical Corp. – Elec-tronics materials maven Christopher F. Johnson has been elected SVP of corporate development of the company, a manufacturer of advanced electronic materials. PE Corp. – Kenneth D. Noonan, Ph.D., has been appointed SVP of corporate development and will be responsible for evaluating acquisitions, alliances, and partnerships. PE, composed of PE Biosystems Group and Celera Genomics Group, provides life sciences and medical products, software, and information. Safeguard Scientifics Inc. – Jonathan Costello has been named VP at this business-to business Internet company. His responsibilities include identifying and negotiating acquisitions and assisting with partner-company acquisition strategy efforts. SL Green Realty Corp. – Jonathan D. Gould joined the company as SVP of acquisitions. SL Green is a real estate investment trust (REIT). Source Technologies Inc. – Bart Edge has assumed the position of VP of business development of Source Technologies, the nation’s largest provider of branch automation MICR printers. He will oversee the company’s strategic planning and acquisition functions. SyCoNet.com Inc. – Philip Jacobson was appointed EVP of business strategy and development. He will manage the acquisition, alliance, and strategic partnership efforts of the company, the leading U.S. distributor of Anime (Japanese animated) movies. TradeOut.com Brian McCagg, the company’s founder, was elected chairman and now concentrates on strategic partnerships and acquisitions. TradeOut.com sells surplus business products. Trinity Industries Inc. – William A. McWhirter II has joined the transportation and construction company as VP of m&a. Universal Studios – The company promoted Diana Schulz from the post of senior director of corporate development and strategic planning to VP of corporate development. USV Telemanagement Inc. – The provider of telecommunications, data, and Internet services announced that it had retained former Jefferies & Co. research analyst William Smith to act as its m&a adviser and to assist in its other capital-markets activities. Xpedior Inc. – Richard Raihill has joined the firm as VP of business development. In his newly created role, Raihill will be responsible for strategy and development efforts, including m&a, global alliances, and partnerships. Xpedior provides e-business consulting services. Zland.com – Gregg Amber, newly named SVP, secretary, and general counsel, will direct Zland.com’s legal team, with responsibility for m&a, technology alliances, and general corporate legal matters. Zland.com provides business software via the Internet.