Former Cohen & Company Fixed Income Heads Launch Recruiting and Consulting Firm Aimed at Creating New Opportunities in the Structured Finance Market
NEW YORK – November 16, 2007 – Brian James and Joe Messineo, former Managing Directors and Co-Heads of Fixed Income at Cohen & Company, announced today the launch of Link Global Solutions (LGS), a recruiting and consulting firm focused on helping financial institutions identify the most qualified professionals to not only fill open positions but also to build businesses and create new opportunities for growth.
In 2002, Mr. James and Mr. Messineo founded the fixed income business at Cohen & Company, a structured credit firm with more than $40 billion in assets under management. During the next five years they led the firm through more than 50 transactions across multiple asset classes and grew the business into one of the most successful and diverse structured finance platforms.
With experience in multiple asset classes and product areas including fixed income, commodities and equities, LGS understands the unique challenges and opportunities facing buy- and sell-side institutions. “It is this hands-on industry experience that sets us apart from our competitors,” said Mr. Messineo. “Top-flight human capital remains the most critical determinant of success for financial market participants. It is our goal to leverage our experience and knowledge, as well as our extensive industry contacts, to connect clients with the most talented professionals in the U.S. and abroad.”
Added Mr. James: “The growth of the structured finance market has to-date been driven almost entirely by arrangers and issuers. Given the re-pricing of risk, the opportunities for buy-side participants have greatly increased. We intend to play an active role in helping clients identify the right talent to take advantage of these new opportunities.”
LGS is based in New York, with offices in London and Tokyo.
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Former Fixed-Income Heads At Cohen Set Up Recruiting Firm
By Aparajita Saha-Bubna Of DOW JONES NEWSWIRES
16 November 2007
Dow Jones Capital Markets Report
NEW YORK (Dow Jones)--As the current unrest in credit markets and hefty write-downs by Wall Street on mortgage bets gone sour whittle down head count in the industry, a business venture is taking shape.
Brian James and Joe Messineo, two former heads of fixed-income at Cohen & Co., a manager of collateralized debt obligations with over $45 billion in fixed-income assets, are setting up a recruiting and consulting firm - Link Global Solutions - with a specialization that includes structured finance products such as CDOs.
These opaque and complex investments pool a broad swath of securities, including corporate debt and mortgage bonds, to sell to investors. These investments have taken a hit in recent months as delinquencies on subprime mortgages - popular fodder for CDOs - have sharply accelerated.
As a result, the bottom lines have suffered at Wall Street companies such as Merrill Lynch & Co. (MER), Citigroup Inc. (C) and Morgan Stanley (MS), which are heavily involved in putting together these investments.
"The market was largely out of equilibrium with the benefits going to the issuers and arrangers," said James in an interview with Dow Jones Newswires.
"We think the market's shifted, with opportunity now existing on the buy-side," he said, referring to buyers such as hedge funds, private equity groups and credit opportunity funds. "We think we are uniquely positioned to take advantage of this opportunity."
With little in the way of CDO issuance and trading as spooked investors stick to the sidelines, firms involved in the structuring and sale of CDOs - particularly those on Wall Street - have cut back on staffing.
"The talent pool emerging from the sell-side is getting bigger by the day," said Messineo.
Messineo and James, who collectively have 24 years of experience in capital markets, joined Cohen in 2002, leaving in July after building its fixed-income business, including sales, trading, origination and syndication, from the ground up.
Link Global Solutions, formed two months ago, is based in New York with offices in London and Tokyo.