KingsRock: the ex-Deutsche Bank advisory firm

LONDON, Oct 23 2020 (IFR) - Hakan Wohlin is gaining traction with his latest project, an informal network of independent but affiliated advisers who have mostly worked together at Deutsche Bank, where he used to run global debt origination.

Wohlin said he was closing in on having 50 advisers under the umbrella boutique KingsRock Advisors, of whom around 90% are former colleagues from his last investment banking role.

It represents a big shift by Wohlin from the asset management aggregator business he set up shortly after he left Deutsche five years ago.

"You need global reach. At the end of the day what is a global advisory firm, or even a global investment bank? Forget about capital for a minute - it's its people. So if you have the same people but with technology you can create virtual connectivity. You can do lots of advisory on a non-principal basis; what we used to do, but with a fraction of the costs," said Wohlin.

It is reminiscent of the last financial crisis when scores of senior bankers set up boutique advisory firms or specialised broker dealers to target the misallocated assets sitting on broken balance sheets. The current environment where much of the corporate space is stressed is ripe for similar activity.

"We're not going to underwrite bonds like DCM ... we're talking about sourcing investment opportunities, more complex situations, and structuring more optimal capital which is more off-the run," said Wohlin.

KingsRock is currently involved in advising on a strategic capital raise for an Indian wireless operator, which involves the two-year-old startup Incred Capital, formed by Venky Vishwanathan. Vishwanathan was previously co-head of corporate finance for Asia and head of capital markets and treasury solutions for Asia Deutsche Bank.

Vishwanathan is one of the more high profile names among ex-Deutsche bankers who can dip in and out of the KingsRock network, working mostly on situations that fly below the radar of the big global banks.

While Wohlin has a lot of affection for his former employer and its current management, he has little love for bureaucracy and other costs that can hinder the need to be nimble.

"Our focus is on the special situations type investors ... a huge amount of capital has been dedicated to this hybrid capital sector. They are often looking for investment ideas with returns between 10% and 20% - between private equity and classic credit is this whole special opportunity landscape," said Wohlin.