A 30-strong team of former Gen Re Securities managers, traders and structurers are shopping themselves around the major financial institutions in London, Bermuda and New York. The team, which is led by Kevin Lecocq, managing director and global head of marketing and structuring in London, has interviewed at Swiss Re, HypoVereinsbank and Goldman Sachs, according to officials familiar with the situation. Press officers at the three firms declined comment. Lecocq could not be reached.
Gen Re Securities announced earlier this year it plans to close after one of its financial backers pulled out of a planned sale. The firm, which was active in the over-the-counter derivatives market, recently fired 170 employees (DW, 2/25).
Officials familiar with the group's plans said Lecocq estimates the group could produce revenue of USD50 million in the first year and USD100 million in the second year. Lecocq, who is rumored to have earned over USD3 million in total annual compensation at Gen Re, is prepared to accept a smaller base salary in exchange for an equity stake. One banker estimated the team would cost about USD3 million in base salaries in the first year with bonuses being paid out after the first year's revenues were earned.
Rivals said Lecocq's team made a profit in 2001 in harsh market conditions, but said finding a suitable partner would be a hard task. Several bankers said it would likely be an institution that does not have a structured products division as it would be easier to bolt on a new department than integrate 30 professionals into an existing group.
