Siebert Cisneros Shank & Co., LLC, one of the nation’s most prominent minority- and woman-owned investment banks, announced that former New York City Housing Authority Chairman and CEO John Rhea, a 30-year investment banking professional and corporate executive, has joined the firm and will be President of the Corporate Finance and Capital Markets division, further expanding one of the company’s top growth areas.
The 51-year old Rhea, a senior advisor to the Boston Consulting Group and the founder and managing partner of RHEAL Capital Management, LLC, a real estate investment and development firm with an impressive portfolio of commercial properties, will lead the corporate banking, sales and trading teams and continue the expansion of SCSCO’s corporate finance presence.
Siebert Cisneros Shank & Co., LLC acquired Siebert Capital Markets in November 2014 from Siebert Financial Corp. and has significantly increased its corporate financing activities.
Since then, SCSCO capital markets group has financed $330.3 billion in global corporate bond issuances and $22.6 billion in global equity offerings. SCSCO has increased its corporate transaction volume by 144% in the first quarter of 2017 compared to the first quarter of 2016, from $25.6 billion to $62.5 billion, for a wide range of Fortune 500 corporations across industry sectors.
Mr. Rhea will seek to further expand the firm’s corporate finance business to match or exceed its municipal finance activity, where SCSCO routinely ranks among the top bond firms in the nation. He will advise corporate clients on accessing debt and equity capital markets, and build on the strong foundations established in corporate bond underwriting, IPOs, secondary equity offerings, and share repurchases. To date, SCSCO has led equity share repurchases for 28 corporations totaling 497 million shares and $30 billion in principal. The firm will also explore strategic partnerships under Rhea’s leadership to bring a broader and differentiated set of advisory capabilities to SCSCO’s corporate clients.
“It is rare to be able to bring on someone with John’s talent, vision, depth and range of experience and managerial expertise,” said SCSCO CEO and Chairwoman Suzanne Shank. “His substantial corporate investment banking experience at several bulge bracket Wall Street firms and leadership roles in the private and public sectors will allow us to continue to grow and expand both our substantial client base and the depth of our services. I am so excited to have him on board.”
From 1997-2009, Mr. Rhea was a managing director and investment banking group head at JPMorgan Chase & Co. and later Barclays Capital (formerly Lehman Brothers), where he advised on more than $100 billion of transactions covering mergers and acquisitions, corporate divestitures, investment grade and leveraged loan credit facilities, corporate high-grade and high-yield bonds, common stock, and equity-linked securities. In this capacity, Rhea managed a $350 million group and was the lead banker to many of the firms’ top large-cap corporate clients advising on numerous industry-defining transactions, particularly in the consumer and retail industries.
As a result, in 2007 Global Finance named his team the top investment bank in the Consumer sector. Mr. Rhea also led noteworthy deals for the major private equity sponsors. Earlier in his career, he worked at PepsiCo, Inc. as a manager of corporate strategy and development; the Boston Consulting Group as a management consultant; and PaineWebber as a public finance analyst and associate.
“SCSCO is already doing phenomenal work in the capital markets arena and I know we can take it to new heights,” said Mr. Rhea. “We will not only continue to grow but become a trusted advisor to more corporations by continuing to put our clients’ needs first and developing more efficient strategies to access capital to help them achieve their growth objectives. I am ready to hit the ground running and I can’t wait to see how much more we can accomplish together.”
“With John on board, we are truly a national capital markets powerhouse, filling out a senior leadership team that includes top experts in the fields of housing, municipal finance, large-scale public infrastructure financing and now an expanded footprint on the corporate side,” said SCSCO Chief Administrative Officer and partner William C. Thompson, the former Comptroller of New York City. “We can compete on any deal, coast to coast, often coming in ahead of competitors many times our size. We achieve that level of success because of the talent of our people, which I would put up against anyone in the business.”
New York City Mayor Michael Bloomberg, and the founder of Bloomberg, L.P., appointed Mr. Rhea Chairman and CEO of NYCHA in 2009 and he served until 2014, leading the $3 billion agency which is the nation’s largest public housing authority, serving more than 635,000 residents and managing 175 million square feet of residential and commercial real estate. During his tenure, Rhea spearheaded investments exceeding $2.5 billion and the development of more than 2000 affordable apartments.
Rhea was nationally lauded for innovative programs, including a groundbreaking $900 million affordable housing refinancing to preserve 20,000 apartments that were at risk of insolvency, a deal that received numerous financial industry honors, including the Novogradac Financial Innovation Award and the NYSAFAH Excellence and Innovation Award.
“Having John join SCSCO to lead our corporate finance and capital markets effort is a major win for our firm”, said Henry Cisneros, Principal and Chairman of the Executive Committee. “John brought private capital to public infrastructure at a crucial time and it’s that type of financial innovation we know he will bring to SCSCO’s corporate clients as well.”
Mr. Rhea, a native of Detroit, is also a principal in an investment group that in 2015 purchased the historic Fisher and Albert Khan buildings in Detroit, two iconic commercial properties that are central to that city’s ambitious redevelopment plans.