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The
merry-go-round underscores the restlessness of dealmakers who
try to get hired on big, high-prestige deals while working for
firms that let them keep more of the advisory fees they
generate. Energy and power has been the most active sector for
dealmaking this year, accounting for $460.3 billion worth of
transactions globally, up 4% year-on-year, according to LSEG.
The six bankers which Moelis has hired from Guggenheim include
Muhammad Laghari, Alexander Burpee, Benjamin Dubois, and Ryan
Staha, said the sources, who requested anonymity because the
moves have not yet been announced.
The bankers, who previously worked at Citigroup together, are on
gardening leave and will start at Moelis in the next few weeks,
the sources added.
Moelis and Guggenheim declined to comment.
Dealmaking has soared among oil and gas producers in the last
two months, as companies seek to boost profitability by adding
more and better acreage. Exxon Mobil clinched a $60 billion deal
to buy Pioneer Natural Resources and Chevron announced a $53
billion agreement to buy Hess. Occidental Petroleum said on
Monday it would buy closely held U.S. shale oil producer
CrownRock for $12 billion including debt.
While Citigroup advised Pioneer on its sale to Exxon, neither
Guggenheim nor Moelis were on these deals.
Deal-focused investment banking boutiques like Moelis and
Guggenheim typically allow their bankers to keep more of their
client fees compared with big bulge-bracket banks like
Citigroup, which run more diverse businesses they have to pay
for.
Guggenheim ranks 19th in LSEG's league table for U.S. oil and
gas deals this year with $5.8 billion of announced transactions,
having been outside the top 25 advisers in 2022. Its largest
mandate was helping Civitas Resources on its $4.7 billion
purchase of energy producers from private equity firm NGP, which
was announced in June.
Moelis has also been a minor U.S. player. It is currently 25th
in the same league table this year, and was outside the top 25
in 2022. It has close ties, however, to a number of major
international energy clients, including Saudi Aramco and Abu
Dhabi National Oil Co.
(Reporting by David French in New York; Editing by Matthew
Lewis)
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