Credit Suisse takes US$4.7B writedown after collapse of hedge fund Archegos
Credit Suisse Group AG senior banker Tim McKessar is joining UBS Group AG, becoming the latest to leave the embattled Swiss lender following the collapse of hedge fund Archegos Capital Management.
McKessar will start at UBS in August and run the telecommunications, media and technology advisory team in Sydney, partnering with Brendan Mulheron, according to an internal memo obtained by Bloomberg. McKessar had been at Credit Suisse since 2007 and most recently led its local TMT team.
He’s among a slew of staffers exiting Credit Suisse businesses around the world in the wake of debacles involving Archegos and supply-chain finance firm Greensill Capital. The Swiss lender last month slashed the amount of money set aside for employee bonuses, using the savings to limit the financial hit from the implosion of Archegos.
The bank is now being forced to consider retention bonuses for staff to stem the bleeding, but that’s come too late for some of its Australian bankers. McKessar wasn’t the only one to head out the door this week, with Bank of America Corp. on Monday snaring Karl Rozman to lead its natural resources advisory team. Rozman, a managing director, had worked at Credit Suisse for 11 years and most recently co-headed its Australia natural resources, energy and infrastructure team.
Earlier this month, Credit Suisse lost its head of Australian mergers and acquisitions, Kierin Deeming, to JPMorgan Chase & Co.
The Australia departures added to more than 10 other senior bankers who left the firm’s U.S. offices in recent weeks. They came on top of other recent exits in Europe and Asia.
Matthew Russell, a Credit Suisse spokesman in Sydney, declined to comment on McKessar’s move but said the bank has “a deep bench in investment banking and continues to hire across the Asia Pacific region.” A spokeswoman for UBS confirmed the contents of the memo.
McKessar’s addition is part of a fresh hiring spree at UBS, which has been on the hunt for staff after losing a string of bankers to new rivals in Australia. Some senior bankers who helped establish UBS as the top investment bank in Australia are now in leadership roles at two new advisory firms, Barrenjoey Capital Partners and Jarden Australia Pty Ltd. They’ve poached teams of bankers and research analysts from UBS, and raided local units of Wall Street banks including JPMorgan, setting off a massive reshuffle and race for talent.