Investment firm Guggenheim Partners LLC is extending its financial reach toward distressed markets with the launch of a new restructuring practice within its securities division–a venture that will grow under the guidance of restructuring veteran Ronen A. Bojmel.
The Wall Street management firm announced its plans Wednesday in a move to round out its advisory offerings to clients, who will now be able to turn to Guggenheim professionals for turnaround advice.
The expansion comes during a slowdown for turnaround professionals who once furiously worked to fix struggling companies during the recession. With recovering credit markets and a forgiving mentality among lenders who would rather extend maturities than foreclose, some turnaround advisory firms have merged or sold out to stronger companies.
But Bojmel said he expects work will come from economic turmoil overseas spun from Europe’s central banking crisis.
“Along the way in the next few years, there’s going to be plenty of opportunity in business for restructuring professionals,” he said. “When you’re good at what you do, you’re going to get your fair share or more.”
Bojmel, 44, formerly a managing director at Miller Buckfire & Co., will start in his new role on Oct. 1. He didn’t disclose his new division’s long-term goals for growth but said he plans to assemble a team of five to 10 professionals initially.
The new group falls within Guggenheim Securities, Guggenheim Partners’ investment banking and capital markets division, and under the watch of Executive Chairman Alan Schwartz, the former chief executive of Bear Stearns.
“Restructuring will be a key component of Guggenheim’s growing investment banking and capital markets business and extends the value proposition the firm offers its clients,” Schwartz said in a statement.
Guggenheim Partners, founded by descendents of mining magnate Meyer Guggenheim, is privately held and manages more than $160 billion in assets. The roughly 2,200-employee firm has more than 25 offices around the world.