Merrill Lynch is expanding its loan capital markets group with the addition of Bill Gates as a managing director. He was previously at Lehman Brothers in the loan origination practice, most recently as head of the European leveraged finance group, but he retired last year, according to a source. Merrill is bringing Gates' onboard as it focuses on leveraged finance and moves to increases the effort's importance inside the firm, according to a person familiar with the situation. The source said Gates will report to Jack Mann, global head of leveraged finance origination. A Merrill spokesman confirmed Gates' hire.
Meanwhile, Rick Stoddard, a managing director, in loan capital markets, with an origination focus, will move to leveraged financed banking. Here he will work on bond and loans origination and work with sponsors, according to the source. He will continue to report to Mann. Stoddard has worked on contingency-financing deals for TECO Energy, CMS Energy Corp., Qwest Corp. and Alliant Energy, in the last year. He previously spent four years in Hong Kong with Merrill as head of debt capital markets. "This will provide Stoddard with the opportunity to broaden out and take on more coverage," a banker said.
"Bill will be a smooth transition in his spot," the banker added. Gates will provide some extra firepower in the LBO stakes and lending to the industrial corporate space, said another source. An additional benefit is Gates' experience in European leveraged finance, where Merrill has been active. A source said Gates was one of the original loan originations group at Lehman, but went to Europe. By the time he returned to the U.S. there had been changes at Lehman and there was not a spot for him, so he decided to retire. A banker said Merrill will continue to selectively hire on the high yield origination and loan capital markets side.