A former UBS and Credit Suisse heavyweight is the third banker ever to become a billionaire. The ex-boxer who is cozy with U.S. President Donald Trump is now trying his hand at the largest IPO in history.
Goldman Sachs boss Lloyd Blankfein and J.P. Morgan CEO Jamie Dimon both made it: They belong to the billionaire club and are thus the two richest bankers in the world.
Now they are joined by a third professional colleague: Ken Moelis, founder and CEO of investment bank boutique Moelis & Co., news agency «Bloomberg» reported on Tuesday. This comes as a surprise – his company is not even 1/100th the size of giants Goldman Sachs and J.P. Morgan.
The 59-year old has been an investment banker for more than 35 years, including stints with Switzerland's major banks, Credit Suisse and UBS. At the latter, he was co-chief of investment banking from 2001 to 2007.
Starting in the Crisis
He then left UBS and founded a finance boutique in the midst of the financial crisis, focusing advising companies takeovers and mergers. Moelis & Co doesn't sell financial products, grant loans or offer research.
What began modestly has grown to impressive size: Moelis & Co. has now 19 locations worldwide. If many industry colleagues thought that the banker would fail, they underestimated his battle-hardened mentality.
During his training at the prestigious Wharton Business School, he regularly sweated in the boxing cellar, as friends remember. His goals were already ambitious at that time: Moelis wanted to become the first world boxing champion with an MBA. Actually, he has the MBA in his pocket, if not the boxing world champion title.
Old Trump Sidekick
His will to fight and a rarified network gave him and his investment bank boutique entree to lucrative deals. The company also participated in the acquisition of ketchup giant Heinz by iconic investor Warren Buffett and on the acquisition of the Hilton hotel chain by the US financial investor Blackstone.
Moelis also maintains best relations with the White House via U.S. President Donald Trump. Prior to joining the Swiss big banks, he had worked for U.S. investment bank Donaldson, Lufkin & Jenrette in the 1990s, when he launched Trump's casinos on the stock exchange. DLJ was bought by Credit Suisse in 2000, a move which marked Moelis' entree into Swiss banking.
On Shaky Feet
The father of four children is now trying his hand at the biggest IPO in history and a deal replete with political implications: Saudi Aramco. Just over a year ago, the state-owned oil company chose the investment bank boutique.
Saudi Crown Prince Mohammed bin Salam chose Moelis & Co for a plan to list five percent of the $2 billion company on the stock exchange. If Saudi Arabia can take in the $100 billion it is aiming for with the listing, Aramco would be the biggest IPO ever.
Currently, however, the IPO plans are shaky, with the scheduled launch date later this year expected to be postponed to next. If Moelis succeeds in this feat, he is the new Zeus of investment banking. It is estimated that the fees in the Aramco deal could reach the three-digit millions.
