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Ken Moelis will step down as chief executive of the investment bank he co-founded almost two decades ago, Moelis & Company, and instead become executive chair later this year.
The 66-year-old dealmaker has become one of the most recognisable figures on Wall Street during a 40-year career, which included a period in which he advised Donald Trump on his gaming businesses.
The bank awarded Moelis a $25mn retention bonus in February this year, which he will still receive provided he remains in a senior role until February 2029.
Los Angeles-based Moelis will be replaced as chief executive by his co-founder, Navid Mahmoodzadegan. Jeff Raich, another co-founder, would serve as executive vice-chair, the bank said on Monday. The transition will take effect on October 1.
Mahmoodzadegan and Raich are both longtime colleagues of Moelis, who worked with him across Wall Street before the trio set up the boutique in 2007. The pair became co-presidents in 2015 as the bank began early-stage preparations for succession.
“This is the right moment to elevate the next generation of leadership and create further opportunities for internal growth,” said Ken Moelis in a statement.
Moelis is among the highest-profile alumni of Drexel Burnham Lambert, the junk bond specialist that took off during the 1980s under Michael Milken.
After Drexel filed for bankruptcy amid allegations of securities fraud by Milken, Moelis landed at Donaldson, Lufkin & Jenrette, where in the 1990s he propelled the firm to the top of the high-yield bond underwriting league tables.
DLJ was acquired by Credit Suisse in 2000 and after a short stint at the combined firm, UBS tapped Moelis to run its investment bank in 2001.
Moelis left UBS in 2007 to form Moelis & Company as a merger advisory boutique. The timing proved auspicious as the financial crisis hobbled large banks and smaller firms such as Moelis prospered with simpler structures that did not include lending and trading activities.
Moelis & Company went public in 2014 and now has a market capitalisation of more than $4bn.
The firm has built its business working with private equity-backed companies, giving debt restructuring advice and maintaining strong ties to the Middle East. Eric Cantor, a former top Republican US Congressman, serves as its vice-chair.
The bank has advised clients including Skydance Media in its merger with Paramount Global, World Wrestling Entertainment in its sale to Endeavour Group and several private equity groups including KKR, TPG Capital and Francisco Partners.
