Clothes don’t make the man, but they can tell you something about his management style.
By Michael Carroll
February 2001
Institutional Investor Magazine
Last year nearly everyone in finance began to dress as if they were auditioning for a Gap ad. One exception: Thomas Weisel, the legendary Silicon Valley banker, who over the past three decades has probably had as intimate a relationship with the U.S. technology sector as any moneyman. Weisel, 60, stuck to his starched shirts, silk ties and custom-cut suits. He didn’t need to follow fashion; he was helping to create it.
In this month’s cover story, “Best-Laid Plans” (page 60), Staff Writer Justin Schack explores how the hard-charging, demanding Weisel is faring in his new venture, Thomas Weisel Partners. Formed just two years ago, the merchant bank boasts 800 employees, nearly $500 million in revenues, and a roster of technology company clients. But Weisel’s operation was built on the promise of a fast-growing economy powered by technological advances. With the economy slowing, and dot-coms disappearing, it remains to be seen whether Weisel Partners can survive a prolonged downturn.
“What Weisel’s done in two years is amazing,” says Schack. “The question now is whether he can withstand a major tech slump and whether he can resist the urge to expand into more capital-intensive businesses.”
This month’s issue also features two stories of turnarounds, one personal, one corporate. In “The Iceman Knocketh” (page 46), Staff Writer Jenny Anderson chronicles the life of former hockey great Derek Sanderson. At one time the highest-paid athlete in the U.S., Sanderson fell victim to drugs and alcohol before pulling himself together. Today he runs a team at State Street Research and Management that invests money for professional athletes - a growing niche in private wealth management.
The corporate turnaround is that of Bessemer Trust. Riven for years by feuds and poor performance, the firm has rebounded to become one of the hottest names in high-net-worth money management. Helping to lead the comeback, by stressing the importance of close personal attention, was CEO Don Herrema. But as Staff Writer Rich Blake reports in “Bessemer’s Conversion” (page 36), Herrema lacked the same gentle touch internally. That led to his unexpected departure last fall.
Paradigms shift. Business models change. But at II we continue to believe that in-depth profiles like these never go out of style.
