Managing Director, Moelis & Co.
British taxpayers and anyone who finds bank bailouts distasteful should probably thank Caroline Silver for her work last year.
Silver, a London-based managing director at Moelis & Co., played a pivotal role in the restructuring of Co-operative Bank PLC. In June 2013, the £41.1 billion-asset British institution was scrambling to plug a capital shortfall after recording huge losses. After six months of tough negotiations, Silver helped to strike a £1.5 billion recapitalization deal in December. Investors swapped their bonds for a 70% equity stake in Co-operative. Silver's clients, a consortium of hedge funds, emerged owning 35% of the bank.
Co-operative Bank markets itself as a highly ethical company, refusing to lend to companies involved in arms sales, animal testing and fossil-fuel extraction. So the specter of hedge funds owning such a considerable stake unsettled many Co-operative customers. But in the bigger picture, a bank tottering on the brink of collapse was rescued without taxpayer funds, offering a template for future resolutions.
Silver's involvement with Co-operative followed a particularly satisfying year in 2012 in which she advised NYSE Euronext on its $11 billion sale to Intercontinental Exchange. That same year, she helped negotiate a $2.2 billion price for the London Metals Exchange in its sale to Hong Kong Exchanges and Clearing Limited. Also last year, she advised Financial Technologies (India) Ltd. on its $150 million sale of the Singapore Mercantile Exchange to Intercontinental.