--Additional reporting by Denise Campbell, Hyacinth B. Carbon, Sonya A. Donaldson, Alan Hughes & Tennille M. Robinson
THEY'RE WALL STREET'S BILLION-DOLLAR players. Some raise capital to build or improve schools, hospitals, airports, and railroads from Los Angeles to London, Others have been responsible for financing the next generation of entrepreneurs and the products that will change the way we live, work, and play.
Whether they are engaged in investment banking, sales and trading, asset management, or private equity, those who wield power on Wall Street know that success is about more than negotiating money-making deals--it's also about brokering relationships. "So much revolves around opportunities to bring in business," says John W. Rogers Jr., chairman and CEO of Ariel Capital Management L.L.C. (No. 2 on the BE ASSET MANAGERS list with $19.3 billion in assets under management). Bottom line: being a power player means having the right connections.
In Ariel's case, it's also about branding--an art that Rogers and President Mellody Hobson have mastered. Once one sees the company's logo--the turtle--you instantly know Ariel's reputation for steady returns and profitability. The dynamic duo made the cut among the most powerful African Americans on Wall Street not only because of their negotiation, money management, and relationship-building prowess but, like the turtle, their longevity at the top.
BLACK ENTERPRISE'S listing is a compilation of the best and brightest investment bankers, traders, asset managers, CEOs, and venture capitalists. Some physically operate on Wall Street while others ply their trade in cities across the globe. Pick a spot on the map--Chicago, San Francisco, London--and you'll find one of our 75 power brokers in action.
Roughly 30 are top-tier professionals at financial behemoths. Another 33 are entrepreneurs who head the largest black-owned investment banks, asset management companies, and private equity firms. Whether they are heading major departments, managing core businesses, or running their own firms, these executives all have an impact on their companies" bottom lines.
Our team of editors and reporters spent six months engaged in extensive research to identify the financial elite. This year's roster outnumbers previous lists, growing to 75 members. One reason: the growth of private equity, the sector in which 18 of the power hitters operate.
Fourteen individuals who appeared on our 2002 list did not make the cut this time around. Some, such as C. Kim Goodwin, former chief investment officer at State Street Research & Management Co., retired from the industry. Some moved into different industries: For instance, top analyst Charles Phillips Jr. assumed the role of co-president and director of tech giant Oracle Corp.
The list includes seven professionals who have appeared on all three of our previous lists: They include Citigroup's James F. Haddon, Bear Stearns' William H. Hayden, Citigroup's Raymond J. McGuire, Lazard's William M. Lewis Jr., Merrill Lynch's E. Stanley O'Neal, Utendahl Capital Partners' John O. Utendahl, and Morgan Stanley's George L. Van Amson.
Over the years there have been radical changes in the gender composition. In 1992 and 1996, only two women made our list--one of whom was William Blair principal Michelle L. Collins. In 2002, six women made our roster. This year's listing features 11 women, including Collins, who resurfaced as co-founder of the private equity firm Svoboda, Collins L.L.C., and newcomer Amy Ellis-Simon, head of multiproduct sales for Merrill Lynch. She appeared on our "Up and Coming African Americans on Wall Street" list in 2002.
The pool of talent is impressive. Unfortunately the number of African American financial managers remains relatively small, and allegations of racism are still leveled at major firms. Despite being run by an African American, Merrill Lynch is being sued by 70 former and current employees who charge that it engages in discriminatory hiring and promotion practices. "African American movement within the industry has seen slow and steady progress, with incremental increases in minority recruitment," says P. Michelle Holton, manager of inclusion at Edward Jones and chairwoman of the Securities Industry Association's Diversity Committee. She concedes movement within the pipeline into senior management has remained inert. According to the U.S. Equal Employment Opportunity Commission, representation of African American officials and managers is the highest in the areas of banking/credit, at 7.0%, and the lowest in the securities industry, at 4.4%.
Those numbers speak volumes. Wall Street is still viewed a club steeped in exclusivity--a bastion of white male privilege. But Rogers says it's not so much that African Americans are intentionally being kept out of the industry, but that "when deals are being cut we just aren't even thought about."
However, the impact of our 75 power players on the financial markets--and the world--has not gone unnoticed.
Selection criteria for the most powerful African Americans on Wall Street
* Those chosen are investment bankers, traders, asset managers, venture capitalists, or top executives with management responsibilities over these areas.
* They are responsible for the companys' bottom line and execute transactions on a national or global scale.
* They have achieved the status of chief executive, president, partner, managing director, or other top-ranking position at their firms and have significant management duties.
* They demonstrate significant influence within their company and throughout their industry.
* Entrepreneurs who own their own firms must operate investment banks that have managed more than $10 billion in total issues, asset management firms with at least $2 billion cinder management, private equity firms with at least $100 million in capital commitments, or perform as a leading firm that engages in unique or complex transactions.
* Candidates must work for a U.S.-based company or the U.S. operations of a foreign-based company.
* Candidates must have at least 10 years of experience in the financial services industry.
Gilbert E. Ahye
SVP, Business Development and Mergers & Acquisitions
American Express Co.
New York, NY * Age: 59
Bottom Line: Ahye is a key adviser to the American Express Global Leadership Team, developing new international business partnerships and executing mergers and acquisitions. Since assuming his current role three years ago, Ahye successfully led the acquisition of Threadneedle, a U.K.-based asset management company, which was recognized by Institutional Investor as the Asset Manager Deal of the Year for 2003. He also led AMEX's efforts to dispose of several high-profile businesses, including the sale of the company's ATM business to 7-Eleven in 2003 and the tax-free spin-off of Ameriprise Financial to shareholders in 2005.
Shawn D. Baldwin
Chairman & CEO
Capital Management Group
Chicago, IL * Age: 40
Bottom Line: Baldwin is a Wall Street fast- tracker who has built his asset management and investment banking firm one acquisition at a time. The first possession was MuniDirect, an Atlanta-based domestic broker-dealer. Next, he acquired KCM Capital Management, an Anguilla-based offshore broker-dealer.
A BE 100s company, CMG has been involved in the General Electric spin-off of GenWorth Financial and Google's IPO. Baldwin has participated in more than 72 transactions totaling more than $63 billion in value.
M.R. Beal & Co.
New York, NY
Bottom Line: Beal is at the helm of the sixth-largest black-owned investment bank with more than $42 billion in managed issues for 2005. Since its inception in 1988, M.R. Beal has grown to 45 professionals based in offices throughout New York; Sacramento, California; Chicago; Dallas; and Atlanta. Beal leads a team that has participated in $29.9 billion of municipal bond underwritings in 2005 and continues to rank among the top 20 underwriters of municipal securities worldwide.
Ronald E. Blaylock
Chairman & CEO
Blaylock & Co.
New York, NY
Bottom Line: Blaylock's firm holds the No. 3 spot on the BE INVESTMENT BANKS list with $82.7 billion in total managed issues. The one-time Georgetown University hoops star garnered an industry-wide reputation in 1996 when company became the first minority-owned firm to lead a corporate bond underwriting. Blaylock continues to make some eye-catching moves. In 2005, the firm served as a lead manager on a $1.6 billion bond financing for General Electric and its equity capital markets business and as a co-manager on Google's $4 billion secondary offering.
Francisco L. Borges
Chairman & Managing Partner
Landmark Partners Inc.
Bottom Line: The former Connecticut state treasurer has led the expansion of Landmark's secondary market activities. Borges guided Landmark's direct investment participation through the creation of Landmark's co-investment and growth capital programs. Landmark has formed 20 funds focused on venture capital, buyout, mezzanine, and real estate partnerships over the last 16 years. These funds have been capitalized at more than $6.3 billion. Prior to joining Landmark, Borges was managing director of GE Capital's Financial Guaranty Insurance Co. and capital markets subsidiaries.
Napolean Brandford III
Chairman & Founding Partner
Siebert Brandford Shank & Co, L.L.C.
New York, NY * Age: 54
Bottom Line: With 25 years of experience under his belt, Brandford is a seasoned public finance veteran. The founding partner manages the Texas and Western regions of SBS. Brandford maintains an active client list that includes many city and state agencies nationwide. An astute financial strategist, he competes against giant firms. Such power moves have worked well in building SBS and helped it seize the No. 4 spot on...