Guggenheim Hires Apollo’s Henry Silverman to Expand Investment Management
Guggenheim Partners LLC, the U.S. firm seeking to buy Deutsche Bank AG’s (DBK) asset management business, hired Henry Silverman, the former chief operating officer of Apollo Global Management LLC, to advise on expansion.
Silverman, 71, who resigned from Apollo last month, will join the firm March 16 as vice chairman of its investment management business and will be based in New York, according to a statement today from Guggenheim Partners.
“Guggenheim has big ambitions,” Bruce Foerster, president of South Beach Capital Markets in Miami, said in a telephone interview. “They are smart people, they are well-capitalized and they are getting ready to move where opportunity presents itself.”
Guggenheim is adding Silverman, a dealmaker, as it seeks to quintuple its size with the purchase of more than 400 billion euros ($530 million) in assets from Deutsche Bank. The Frankfurt-based lender said last month it was holding exclusive talks to sell its asset management divisions to Guggenheim, which currently has $125 billion of assets under management. The bank’s divisions manage money for both retail and institutional investors.
From 1990 to 2007, Silverman was chief executive officer of Cendant Corp. and a predecessor business, HFS. Cendant was a travel and real estate services company with franchises including the Avis rental car and the Days Inn hotel chains.
Silverman also was chairman of Realogy Corp., a residential real estate broker that was spun off from Cendant. Apollo, the private equity firm run by Leon Black, acquired Realogy in 2007 for $6.6 billion.
“Henry has a distinguished track record of recognizing business opportunities and building and leading companies to sustainable growth in a broad range of industries,” Todd Boehly, president of Guggenheim Partners, said in the statement. “I have no doubt Henry will bring strategic guidance and competitive drive to Guggenheim.”
Guggenheim Partners is connected to the family of Meyer Guggenheim, a tailor of Swiss-Jewish background who came to the U.S. in the 1840s and made a fortune in mining and smelting. The Solomon R. Guggenheim Museum in Manhattan is named for one of his sons, a philanthropist.
In 2000 Peter Lawson-Johnson Sr., a great grandson of Meyer Guggenheim, used family funds to start the company, which has evolved into a financial services firm that manages money and provides investment banking services. The firm is led by Chief Executive Officer Mark Walter. Alan Schwartz, former CEO of Bear Stearns, is executive chairman.
Guggenheim Capital LLC, the majority owner of Guggenheim Partners, has raised money from outside investors, including Sammons Enterprises Inc., a Dallas-based company with interests in industrial products, insurance and travel.
K1 Ventures Ltd., based in Singapore, agreed in June to invest $100 million in preferred stock and warrants of Guggenheim Capital, Guggenheim said at the time.
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