Frontline – July 2006

Stomber quits Cerberus for Carlyle debt team
Global private equity firm The Carlyle Group has appointed John Stomber as managing director in its leveraged finance group. Stomber, who joins from Cerberus, will help develop new investment products and expand existing business lines, according to a statement. At Cerberus, Stomber was a managing director focused on structured finance transactions and deals with banking and securities firms. Prior to joining Cerberus in 2004, he was senior vice president and global treasurer of Merrill Lynch. He also had an eight-year spell from 1991-1999 as a managing director at Deutsche Bank. Meanwhile, Matthew Cottrell has joined Carlyle’s European leveraged finance team as an associate director. Cottrell was previously at Fitch Ratings, where he was a director of the CDO group in European structured finance.

Debt advisor makes double swoop
London-based Blenheim Advisors, an advisor on debt packages for financings and refinancings, has made two new appointments in response to growing demand for its services from private equity firms. David Parker has joined as an executive director, having previously worked for DAM Advisors, CIBC’s leveraged finance group and the Royal Bank of Scotland. He is joined by associate Romain Lanier, who previously worked on leveraged transactions at Banca Nazionale del Lavoro in London, having also had spells at Credit Lyonnais in New York and Deloitte & Touche in France. Founded in 2003, Blenheim has since arranged debt packages for 24 deals across the UK, France, Germany, Italy, the Netherlands and Belgium. The double hire raises the size of Blenheim’s team to six.

Deloitte hires reorganization pro
Deloitte, the business advisory firm, has appointed Andrew Harris as a principal in its corporate finance reorganization services practice in London. The practice works with both public companies and private equity firms. He was previously a senior director leading the working capital management group at Alvarez & Marsal in Europe. Said Gerry Loftus, senior partner in the reorganization service practice: ?Given current market conditions, companies are increasingly in need of advice around how they can release cash from their working capital. Andrew has worked with leading international businesses across Europe and the US to extract the most value from their working capital assets.?

Stegenga to switch from FTI to Alvarez
Alvarez & Marsal, the global professional services firm, has announced the appointment of Jeffery Stegenga, a specialist in out-of-court restructuring, bankruptcy consulting, lender advisory and financial and accounting consulting. Stegenga will join on September 1, 2006 and will be a managing director and member of the firm’s executive committee for US restructuring. Stegenga is currently a senior managing director with FTI Consulting’s corporate finance and restructuring practice, having previously been a partner with the US division of PricewaterhouseCoopers’ business recovery services practice in Dallas.

Interregnum becomes Parkmead
London Stock Exchange-listed Interregnum, a former early-stage technology investor and advisor, has renamed itself The Parkmead Group. Parkmead, which is headed by CEO Niall Doran and has an 11-strong team, will from now on focus on business turnarounds, principal finance and corporate finance activity across a range of sectors including aerospace, energy, leisure, manufacturing and technology.

BDO recruits deal originator
UK accountancy firm BDO Stoy Hayward has appointed Shaun Beaney as a deal origination manager in its corporate finance department. He joins the firm from the corporate finance faculty of the Institute of Chartered Accountants in England and Wales (ICAEW), where he was a business development manager. The ICAEW represents more than 5,600 staff and 61 firms in business, banking, private equity, law, broking and professional services. Earlier in his career, Beaney launched the corporate finance research team at BDO Stoy Hayward, before leaving to become deputy editor of Real Deals, a European private equity magazine. His new role will focus on proprietary deal sourcing in the mid-market.

Fulcrum gets certified
Fulcrum Limited, a Bermuda-based global fund administrator for the alternative asset management industry, has obtained SAS 70 certification – a standard promulgated by the American Institute of Certified Public Accountants (AICPA). This followed what the firm described in a release as ?an in-depth independent review? by accounting and auditing firm Ernst & Young of the controls relating to its fund administration and shareholder services. Fulcrum was founded in 1995 and has offices in Bermuda, New York and Canada. It underwent a Type 1 SAS 70 examination, which includes the auditor’s opinion on the fairness of the description of controls and the suitability of the design of controls to achieve specified control objectives.

Life science headhunter adds principal
Coulter Partners, the London-based executive search firm focused on life sciences that has a particular specialization in the venture capital and private equity markets, has recruited Peter Rees as a principal. He has worked in the life science recruitment sector since 1998. Prior to that, he worked at Wellcome Pharmaceuticals co-ordinating the firm’s European clinical development activities. Founded in 2003, Coulter Partners now has a nine-strong team of executives.

Quartet to focus on deal flow at CIT
CIT Group, a New York-based provider of commercial and consumer finance solutions, has announced the appointments of Randal Stephenson as head of its middle market mergers and acquisitions group and R Thomas Hawes, James Cotter and Larkin Fowler as directors. All four will deliver transaction ideas and execute merger, acquisition, divestitures and other advisory mandates, with a particular focus on generating deal flow for private equity clients. Stephenson joins from Jefferies & Company, where he was managing director in the M&A group and co-ordinated the exclusive sales and divestitures practice. Cotter and Fowler also join from the M&A group at Jefferies, while Hawes was formerly at Centre Capital Advisors.

Jersey’s Aztec opens in Guernsey
Aztec Group, a Jersey-based fund administration services provider, has opened a new office in Guernsey. In a release, Aztec said, ?the Channel Islands is experiencing exciting growth in the funds sector on the back of recent legislative enhancements that make both Jersey and Guernsey attractive jurisdictions for fund promoters.? The release added that, ?it is a natural progression for Aztec to provide its specialist expertise to clients in both islands.? Aztec’s core activity is to provide fund administration services to venture capital, private equity and real estate funds.

McGuire to spearhead Davenham Manchester push
Davenham Trade Finance, a UK asset-based lender to the small and medium-sized enterprise (SME) market, has promoted Mark McGuire to regional director with responsibility for expanding the firm’s business in the Greater Manchester region. McGuire joined the firm in October 2003 as a business development manager. He was previously a chartered accountant with Deloitte & Touche, where he went on to specialize in corporate finance. Formed in 1991 and acquired by its management in 2000, Davenham offers financing solutions in the range £50,000 to £3 million. It has offices in Birmingham, Leeds, Liverpool, London, Manchester and Newcastle.

Blackstone one advisory group adds Studzinski
The Blackstone Group, the New York-based alternative assets giant, has announced that John Studzinski will be joining the firm later this year as a senior managing director and member of the firm’s executive committee. His main role will be to oversee and develop Blackstone’s advisory business in the US and Europe. Studzinski joins from HSBC, which he joined in 2003 and where he was co-head of the investment banking and markets divisions and a member of the group management board. Prior to that, he had been at Morgan Stanley for 22 years, becoming head of investment banking and deputy chairman. Said Blackstone chairman and CEO Stephen Schwarzman: ?His outstanding track record in transatlantic investment banking will be invaluable in accelerating the growth of our advisory business, the cornerstone on which Blackstone was built over 20 years ago.? Stuart Gulliver, Studzinski’s fellow co-head of investment banking at HSBC, is to assume sole responsibility for the bank’s corporate, investment banking and markets activities following Studzinski’s departure.

Bowers boosts CVC debt business
Pan-European buyout firm CVC Capital Partners has appointed former Deutsche Bank leveraged financier Jonathan Bowers to Cordatus, its new independent debt management business that was launched in late May. Bowers has been part of the European leveraged finance group at Deutsche Bank for the last eight years and worked on a number of CVC transactions including Jefferson Smurfit, Kappa and Lecta. Cordatus will provide financing for sponsor-backed European leveraged buyouts including, but not limited to, CVC deals. A spokesperson for CVC told sister website PrivateEquity-Online.com that Cordatus would be entirely segregated from CVC, operating from a different building and with no unauthorized access to the firm’s IT systems. The spokesperson added that Cordatus is in the process of visiting ?key sponsors and arrangers.? No information has been disclosed regarding how much capital Cordatus is seeking to manage.