Guggenheim Agrees to Buy Firm Run by Jim Millstein

(Bloomberg) -- Guggenheim Partners has agreed to buy a restructuring advisory firm that’s run by Jim Millstein, the U.S. Treasury Department’s former restructuring chief, according to people familiar with the matter.

Millstein & Co. would become a part of Guggenheim Securities, the investment banking division, said the people, who asked not to be identified discussing personnel matters. Terms weren’t available and the deal still may not close. A Guggenheim representative declined to comment.

Guggenheim Chairman Alan Schwartz, a Wall Street veteran who ran Bear Stearns Cos. in its final days, has been expanding the restructuring, mergers and acquisitions businesses at the securities division. Turnaround bankers at the firm include Durc Savini, Morgan Suckow and Stuart Erickson, and this year it hired Peter Schwaikert from Perella Weinberg Partners. The team is preparing for the next economic downturn, which Chief Investment Officer Scott Minerd said may happen in about two years.

Millstein helped oversee the bailouts of American International Group Inc. and Citigroup Inc. during the financial crisis, then started his own firm in 2011. He has worked on the restructuring of cable operator Charter Communications Inc. and with the United Auto Workers in negotiations with carmakers. Millstein & Co. also helps troubled nations, and has working with Cyprus and Greece as well as Puerto Rico, according to its website.

Guggenheim most recently won work with clients including lenders to Nine West Holdings Inc. and Payless Inc., and has also been adding M&A bankers. The firm said this week that Credit Suisse Group AG banker Punit Mehta joined for health-care deals, while Todd Richter was hired from Barclays Plc last month.

©2018 Bloomberg L.P.