1st Union Keys on Capital Markets

By Mandaro, Laura | American Banker, August 9, 1999 | Go to article overview

1st Union Keys on Capital Markets


Mandaro, Laura, American Banker


The turmoil at First Union Corp. is putting new emphasis on returns from the company's capital markets group.

Part of the pressure is landing full force on David Knowlton, hired just four months ago from investment banking boutique Gleacher & Co.

Mr. Knowlton was brought in to run the private equity business of Bowles Hollowell Conner, a Charlotte, N.C.-based investment banking boutique founded by former presidential adviser Erskine Bowles in 1975 and acquired by First Union in April.

Mr. Knowlton heads a group of 30 that has specialized in getting middlemarket companies the necessary financing for mergers and leveraged buyouts.

The money comes from some of the most powerful merger and acquisition funds on Wall Street: Kohlberg Kravis Roberts & Co., Hicks, Muse, Tate & Furst Inc., and the Blackstone Group LP.

Now Mr. Knowlton says he wants bigger clients and larger transactions. "Our aim is (to do deals in) the $1 billion to $2 billion range, as well as continuing to do those in the $150 million to $200 million range," he said.

To that end, Mr. Knowlton has recruited several high-powered Wall Street investment bankers, including Jeff Armstrong of Salomon Smith Barney; Dan Bumgardner of Chase Manhattan Bank; and Cliff Strain of Morgan Stanley Dean Witter & Co.

"We are very selectively hiring the top people" to manage relationships with some of the large Wall Street funds, he said.

With First Union's balance sheet, taking on bigger deals should not be a problem. The $230 billion-asset banking company has a roster of more than 20,000 corporate clients, which should provide plenty of leads for Mr. Knowlton and his group.

"There will be a tremendous increase in revenue opportunities by marrying relationships that we have with equity groups with those that our industry specialists have with First Union's corporate clients," Mr. Knowlton said.

The cross-pollination has yielded two deals. Mr. Knowlton's group seeks funding for a First Union corporate client that has a $1.4 billion syndicated loan that is lead-managed by the banking company and for a customer with a $750 million credit facility.

Over the last three to four years, First Union has committed more than $1 billion in private equity funds. Mr. Knowlton said the company is likely to place $300 million to $400 million of its own money in private equity this year.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

1st Union Keys on Capital Markets
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.