This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JPMorgan's Trillion-Dollar Man

One private equity executive who describes himself as having a lot of respect for Lee and says he has played golf with him declined to comment about Lee's scorekeeping. When pressed, he finally added, "Look -- he's a competitive guy and he likes to win."

Maybe it is this unassailable optimism that gives Lee the will to hang around for the next cycle, when he can once again bring in huge fees, even as many younger bankers are calling it quits. Certainly, big-name clients like Josh Harris, a partner at Apollo Management hope he's sticking around.

Harris describes Lee emailing him after a disagreement emerged the night before Apollo was to sign a $3.4 billion deal with GE to buy its silicon and quartz business in 2006.

" I think he called me 1 a.m., 1:30 a.m., 2 a.m., 2:30 a.m., 3 a.m., 3:30 a.m. -- literally," says Harris, who eventually unplugged his phones and woke to about 15 email messages from Lee.

"He is willing to throw his body to a different extent against getting a problem resolved in a deal," Harris says. "There aren't very many people like that, who are also of his stature and kind of success and wealth. Usually when you're at that level you don't do that."

But private equity, Lee's bread and butter, is likely to be an increasingly less prominent focus at JPMorgan, according to Doug Braunstein, JPMorgan's head of America's Investment Banking. In an interview last week on CNBC, Braunstein presented the private equity boom as a highly unusual period that was unlikely to repeat itself any time soon. He said private equity firms accounted for nearly a third of M&A activity in 2006-2007, a sharp increase from the 5% to 10% of the market they have represented in normal times.

"Financial sponsors will be an important component of the market, but it really will be strategic acquisitions that drive the market, which is what they've done for 17 of the last 20 years," Braunstein said on CNBC.

What that means for Lee remains to be seen.

5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIG $54.81 0.04%
BAC $15.41 0.13%
BX $39.04 0.39%
GS $192.23 2.27%
GE $24.84 0.12%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs