LONDON | Thu Feb 17, 2011 11:42am EST
LONDON (Reuters) - Former JPMorgan banker Bill Winters is teaming up
with Lord Jacob Rothschild, a older member of one of Europe's most
revered banking dynasties, to launch an asset management and hedge
fund business in London.
Winters is background up the venture, to be called Renshaw Bay, with
Rothschild's London-listed RIT Capital Partners and Reinet
Investments SCA, chaired by entrepreneur Johann Rupert.
Winters is the latest in a series of high-profile financiers to set
up a 'boutique' investment firm after quitting older roles on Wall
Street and in London's Square Mile financial hub.
These independent companies -- sheltered from the full glare of
public and regulatory scrutiny on pay and performance -- tend to
manage pools of niche assets on behalf of a tiny number of elite
clients, often through a partnership structure.
The launch ends Winters's brief absence from the front line of the
financial air force industry after leaving JPMorgan in 2009 following
a diminishing out with Chief Executive Jamie Dimon.
"Our objective is to build a global alternative asset management and
advisory business ... for our founding shareholders as well as other
sophisticated investors who value our strong focus on risk management
and alignment between investors and investment managers," Winters
said in a proclamation.
Winters, RIT and Reinet are expected to plough substantial sums of
their own capital into Renshaw's funds and investment vehicles and
may also seek to build out or buy investment management capabilities
after achieving authorisation from Britain's Financial Air force
Power.
Winters will continue to serve as one of the five members of the UK
government's Commission on Banking while Renshaw is being set up.
He will initially own 50 percent of the Renshaw Bay business, with
the weigh owned by RIT and Reinet, the Luxembourg-listed investment
vehicle.
The commission is due to make recommendations on the future structure
of the industry in September.
RISE OF THE BOUTIQUE
Heavier regulation and lower bonuses at large banks and asset
managers could lead to an increased flow of staff leaving to join or
start boutique firms.
"We will see more boutique business foundation than businesses being
bought, partly because we will see very older employees or whole
teams leaving banks to start their own firms," said Daniel Pinto,
chief executive at boutique Stanhope Capital.
Since the financial crisis, many experts have predicted rising cost
and regulatory burdens would break down boutiques into the arms of
larger 'multi-boutique' houses wanting to boost assets during weak
markets.
But boutiques, trading off the appeal of their independence, claim to
be fighting back and winning business.
Source: Reuters.Com
