Art Penn, the ex-global co-head of leveraged finance at UBS Warburg, has resurfaced at French bank CDC IXIS North America and is said to be looking to set up a middle-market leveraged finance shop. Penn did not return repeated calls regarding his plans, but several market players said a leveraged finance outfit is in the works. A spokesman for CDC said Penn is working within the ABS group alongside Joe Piscina, former head of asset-backed finance at PaineWebber. He noted that nothing has been approved and as a state-controlled entity, CDC is very risk averse. "CDC is taking its time to expand its ABS business," he said.
Market players speculate that Penn is doing more than helping out in structured finance. "It is unlikely he wants to be at a French agricultural bank within structured finance," one banker said. "He is working with them to do a middle-market leveraged finance initiative, providing, debt, mezzanine and private equity." He added, "There is opportunity as a lot of large institutions have dropped out and this has created a vacuum." Penn has been working on this for some time, as he is waiting for internal approval from the bank, the source said.
Prior to joining Warburg Dillon Read, Penn was head of global fixed income capital markets at BT Alex Brown. Before that, he was a senior v.p. of capital markets at Lehman Brothers. Penn left UBS last October, following a reorganization. He was co-head along with Chris Ryan, but investment banking head Kenneth Moellis promoted Brian McBride to co-head, global syndicated finance with Ryan. Penn was moved to the buyout group, where after leaving he was replaced by Warren Woo.