Deutsche Bank Lures Hedge Fund Team from Barclays
Deutsche Bank Said to Lure Prime Unit Team from Barclays
(Bloomberg) -- Deutsche Bank AG poached a team of executives catering to hedge-fund clients from rival Barclays Plc as the troubled German lender seeks to rebuild that business and ultimately transfer it to BNP Paribas SA.
Ted Post, a senior executive at Barclays’s so-called prime unit, is joining Deutsche Bank in New York along with Tom Kocica, Brian Bendowski and Steve Cash, according to people familiar with the matter. The plan is for the new hires to ultimately become employees of BNP Paribas once the French bank takes over these operations, the people said.
Deutsche Bank was once one of the world’s most powerful players in prime services, the lucrative business of executing trades and lending securities to hedge funds. Yet the division struggled to keep clients in recent years and Chief Executive Officer Christian Sewing agreed in September to gradually transfer the division to BNP Paribas along with up to 1,300 staff through 2021. Officials at the Paris-based firm now have ambitious plans to lure new clients and win back old ones, Bloomberg News has reported.
Spokeswomen for Deutsche Bank, Barclays and BNP Paribas in London declined to comment.
Post, who joined London-based Barclays in 2012, is a managing director and head of U.S. equity-financing sales, according to his LinkedIn profile. He will become Deutsche’s co-head of global prime finance sales in the U.S., the people said.
Kocica and Bendowski are directors in sales while Cash is a trader, the people said. All are veterans of the prime industry, according to records from the Financial Industry Regulatory Authority and their LinkedIn profiles.
The world’s biggest banks generated about $8.8 billion of revenue from prime services in the first half of 2019, down 18 percent on a year earlier, according to data from Coalition Development Ltd. That’s still almost double what they made from trading in common stocks. Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. led the industry last year, while the only European firms to make the top 7 were Barclays and UBS Group AG, the data show.
To contact the reporter on this story: Donal Griffin in London at dgriffin10@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Dale Crofts
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