Former Australia and New Zealand head of UBS, Matthew Grounds, is making his formal debut at the recently launched rival firm Barrenjoey Capital on Monday, taking on the role of executive chairman.
It has long been anticipated that Mr Grounds would be spearheading the Sydney-based group alongside his former UBS offsider Guy Fowler who is also executive chairman of Barrenjoey.
Mr Grounds is known to have been working at Barrenjoey in recent weeks, as first flagged by The Australian’s DataRoom column last Monday, even though his formal entry into the job starts on Monday.
The understanding is that the investment banking rainmaker, who counts billionaires such as James Packer and Frank Lowy among his clients, will focus on client activities, while chief executive Brian Benari will oversee daily operations.
The firm now counts a number of successful former UBS deal makers within its ranks after carrying out a sustained raid on the Swiss financial that has seen it build a stable of top talent over recent months.
Among UBS recruits are the country’s most dominant equities block trader George Kanaan along with his team members, infrastructure banker Jarrod Key and his team, and other successful UBS investment bankers including generalist banker Luke Bentvelzen, private equity banker Justin Dwyer and telecommunications banker Peter Nelson. Several high-profile analysts have also been recruited from Mr Grounds’ former employer, including banking analyst Jon Mott, gaming analyst Matt Ryan and resources analyst Glynn Lawcock, along with many others in the analyst ranks.
UBS has fought back with letters threatening legal action in the poaching war if former executives use any confidential information from the bank in the establishment of a rival business.
Mr Grounds is understood to have had an agreement in place with UBS not to recruit staff from his former employer for his new venture until this year.
Sources say he has recently been spotted in the city meeting clients and turning up to beauty parades, where investment banks pitch for roles.
Other big names in the venture are ex-Deutsche Bank chief financial officer John Cincotta, ex-UBS investment banker Matt Hanning and ex-UBS head of equities Chris Williams.
Ex-Barclays country head Cynthia Whelan will be a senior adviser and BHP chairman Ken MacKenzie will be a senior strategy partner.
Barrenjoey’s chairman is highly regarded boardroom director David Gonski.
Barrenjoey, to be based out of its Castlereagh Street offices in Sydney, is providing corporate and strategic advisory, equity and debt capital market underwritings, cash equities, research, prime brokerage as well as traditional fixed income services to Australian and international clients and its hope is to become an Australian champion of investment banking.
Barrenjoey expects to be trading shares and executing block trades in the June quarter.
It has been mandated to float Judo Bank, and has already advised on Lendi’s marriage with mortgage broking group Aussie. It also has a pipeline of other mergers and acquisitions and ASX floats in its pipeline.
In Magellan’s annual report last year, it said Barrenjoey had grown to have at least 150 employees that had been hired from 30 institutions.
The launch of Mr Grounds in the job comes amid a flurry of activity in the local investment banking and corporate advisory sector over the past year.
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