U.S. Bancorp Gets New M&A Co-Head

Jeff A. Rosenkranz has joined U.S. Bancorp Piper Jaffray as co-head of m&a. The 38-year old banker had worked for Merrill Lynch & Co. for the last 14 years. During his tenure at Merrill, he represented numerous companies, private equity groups, and entrepreneurs in the sale of businesses. He participated in more than $2 billion worth of deals since 1999. In anticipating some of the challenges he will face at U.S. Bancorp, he says that in the wake of the corporate accounting scandals and other factors, the seller’s market of a few years ago has swung to being a buyer’s market. “Due diligence is taking longer and any questions are being fully vetted. The balance of power in reps and warranties has also changed to favor buyers,” he says. But Rosenkranz also says that he finds a strong market environment for the best companies that are being hawked. “In the middle market, the stronger companies are being sold for impressive multiples,” he says. He expects the macroeconomic picture for deals to pick up in 2003, and for financing to become easier to line up by then, as market conditions improve. He also says there is an overhang of private equity deals that will come to the market soon. “If you look at the larger context, limited partners want to get their money back and the funds need to raise new financings, so there will be an increasing percentage of portfolio companies coming onto the market.” He says that his firm is perfectly positioned to take advantage of these companies and others that will be coming on the market. “We have the largest cadre of dedicated middle-market bankers with 30 professionals who have relationships across many industries.” He draws a distinction between bankers who are jacks-of-all-trades and those who specialize in middle-market deals. “The middle market is different, and it takes people who have been in the trenches to best service their clients,” he says. Distribution, transportation, manufacturing, and food are sectors from which he expects to harvest deals. Overall, he says that this is an exciting time to be in the middle-market m&a business because where there is turmoil, there is opportunity. With so many industries in transition, Rosenkranz sees opportunities for the firm as a whole and for individual bankers to capitalize on what he expects will be a dramatic increase in middle-market deals. Service Appointments Bear Stearns International Ltd. – Alain Demarolle and Laurent Meniere have joined the firm as senior managing directors and will focus on the development of the firm’s investment banking business in France. Demarolle most recently was with Schroders, Salomon Smith Barney’s investment banking division, where he focused on major French accounts. Meniere previously was with Merrill Lynch International, where he focused on the coverage of major French clients. Houlihan Lokey Howard & Zukin – The firm has hired Hector G. Calzada as a vice president in its Atlanta office. Formerly, Calzada was a managing director at InteCap Inc., a Chicago-based consulting firm. Lazard – Andrew Nason has joined the firm’s London office as a managing director in the financial institutions group. He comes aboard from Deutsche Bank. Lehman Brothers – The firm has tapped Mark J. Shapiro, a recognized restructuring expert, as a managing director and co-head of its global restructuring unit. Shapiro had been a partner at Shearman & Sterling. Pacific Crest Securities – Wade Davis has joined this technology investment bank as head of m&a. Previously, he had been a managing principal of Lazard Venture Advisors, which he helped found. UBS Warburg – David A. McCreery was recently hired as a managing director in this firm’s industrial investments group. He had been a senior banker in the m&a department at Morgan Stanley. U.S. Bancorp Piper Jaffray – Christopher McCabe joins the firm’s investment banking practice as a managing director. He will focus on the firm’s semiconductor capital equipment investment banking practice. He previously had been with Robertson Stephens, where he was instrumental in building the firm’s semiconductor investment banking department. Private equity appointment Wells Fargo Securities – The firm has expanded its investment banking division by opening an office in Chicago and hiring an investment banker for its new office in New York City. Steve Moss comes aboard as managing director and head of the firm’s Midwest initiative. Previously he had been with Merrill Lynch, focusing on companies in the enterprise hardware, storage, personal computers, and handheld computing industry sectors. Also in Chicago, Chris Falk joins the firm as vice president. He had also been at Merrill Lynch in the same division as Moss. In New York, Will Lewis joins as SVP and head of private capital. He had been with Robertson Stephens, where he specialized in the medical devices and biopharmaceuticals sector. Corporate appointments MDS Capital – This venture capital firm has hired Gerry Brunk as a venture partner in its new office in Cambridge, Mass. He had been COO of ActiveCyte Inc., a Boston-based bioinformatics company. Bank One Corp. – Jay Mandelbaum has joined as EVP of strategy and business development. He had been vice chairman and CEO of the private client group at Salomon Smith Barney. Entegris Inc. – Gregory Graves was named chief business development officer at this materials integrity management company. Previously, he had been a vice president at U.S. Bancorp Piper Jaffray. FTI Consulting Inc. – M&A specialist John J. Ferro has joined this multi-disciplinary consulting firm as a managing director, with responsibility for developing the firm’s m&a practice. Also joining the firm are Gary J. Heller, director, and Jason R. Scott, associate. They all will be based in New York. The firm is also forming a new unit, FTI Merger & Acquisition Advisors LLC, which will work with distressed and healthy companies, with a focus on business services, consumer and industrial products, technology, media, and communications. Inflow Inc. – Jim McHose was named EVP of corporate development at this information technology company. Formerly, he had been vice president of finance and business operations at the company.