It is becoming like one of the seven ages of man.
A banker begins life shouting on the trading floor, then battles for power in the investment bank, before overseeing the whole institution.
As a final act, it seems that all top bankers must now form a special purpose acquisition company (Spac).
That is what the typical late-stage career of the successful CEO appears to be in the 2020s.
First was Sergio Ermotti, who became chair of Investindustrial Acquisition Corp immediately after stepping down as UBS’ chief executive in November.
Then it was Tidjane Thiam, the former CEO who left Credit Suisse a year ago. News broke in January that he was setting up a $250 million Spac with backing from JPMorgan.
Ex-Commerzbank CEO Martin Blessing is also reportedly setting up an Amsterdam-listed Spac to invest in European financial services.
Could Jean Pierre Mustier, a former classmate of Thiam, be next?
Once he has stepped down as UniCredit’s CEO after its fourth-quarter results on February 11, Mustier may be keen to go down a more entrepreneurial route; he has form as a non-bank financier from his time at Tikehau Capital in the mid 2010s.
Big heads
Ex big-bank CEOs are well-suited to fronting up Spacs because they are recognisable names in finance. As a Spac is essentially a listed blank cheque for acquisitions yet to be determined, investors have little more to believe in than the person heading it.
Meanwhile, the vehicles allow former bank chiefs to show they are still at the coal face of finance – and perhaps facilitating their return to the industry in due course.
The real question, though – especially when it concerns former European bank CEOs, is what kinds of companies their Spacs will target.
Ermotti’s Spac, as the name might suggest, is likely to target mid-cap manufacturers, healthcare and technology companies in Europe. Thiam’s is reportedly looking at financial services.
Former Barclays banker Makram Azar’s Golden Falcon Acquisition Corp is also partly looking at fintech – something Mustier was rather lukewarm about at UniCredit.
Perhaps a mid-sized Italian fridge maker would make a perfect Spac target for him?
