Dominion Resources Inc. has added a seasoned group of professionals to its merchant banking effort.
The Richmond, Va., electric power company this month recruited four executives of Indosuez Capital, the U.S. merchant banking arm of Paris- based Credit Agricole Indosuez, to its Dominion Capital unit.
The latest group of defectors, which includes senior managing director John Popp, brings to five the number of Indosuez bankers who left for Dominion this year.
"We had a vision of how the business could be run that was better shared by Dominion Capital," Mr. Popp said."It was less a parting than a good opportunity that opened up.
"We're delighted to be with a supporting capital partner that has made this business a priority and looks to make significant investments in it."
Executives at Indosuez Capital could not be reached for comment.
Indosuez managing directors Alex Bolen and Andrew Marshak, as well as vice president Michael Monteleone, also joined Dominion in the last month. Managing director John Sabre moved over in August.
Dominion Capital plans to offer senior financing of $50 million to $200 million, mezzanine financing of $5 million to $50 million, equity investments ranging from $2 million to $15 million; and bridge loans.
The firm is also raising a collateralized debt obligation comprising 75% bank loans and 25% high-yield bonds. The offering will be "north of $1 billion," Mr. Popp said.
At Indosuez, Mr. Popp and his colleagues structured three collateralized loan obligations, with an aggregate value of $1.3 billion.
Hayden McMillian, senior vice president and chief financial officer at Dominion Capital, said the firm has long wanted to do similar deals but lacked the professionals to put them together.
"This is an exceptionally talented and unique group, able to respond to our customers' needs and to provide all tranches of the capital structure," Mr. McMillian said.
He added that the group would grow substantially.
"This fits in nicely with our other commercial finance businesses and offers us strategic benefits," Mr. McMillian said.
Dominion Capital is also the parent of First Source Financial, Saxon Mortgage Inc., and Cambrian Capital Partners LP.
First Source, Chicago, finances middle-market companies. Saxon Mortgage, Richmond, originates, securitizes, and services nonconforming home mortgage and home equity loans. And Cambrian Capital makes senior and subordinated loans to small and midsize energy companies.
