JOSEPH PERELLA, the former Morgan Stanley banker who is starting his own investment boutique, has told investors that earnings will increase 14-fold to $188 million (£106 million) during the next five years.
Mr Perella said that his firm would sell merger and restructuring advice to the world’s biggest companies, manage global hedge funds and make strategic investments. The mergers and advisers business will focus on five industries and target about 25 per cent of the world’s top 280 companies.
Mr Perella will also focus on private equity, which he claims will generate $193 million of revenue in five years, while hedge funds will generate $157 million, both representing 14-fold increases.
The former Morgan Stanley banker is planning to open offices in London and Tokyo, in addition to one in New York. Paulo Pereira, a former managing director at Morgan Stanley, will set up the European operation. It is thought that he will try to lure former colleagues and others at rival firms such as Goldman Sachs.
Leading bankers who are thought to have been approached include Simon Robey and Michael Zaoui at Morgan Stanley, and Gordon Dial at Goldman Sachs. All are managing directors in mergers and acquisitions. Yesterday they were still in their positions.
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Initially constrained by non-compete agreements, Mr Perella late last year began approaching bankers to join his new firm and soliciting investors to provide about $1 billion of start-up funds.