Barclays Capital eyes partnership

March 15, 2010 | By Jim Kim

Here's one way to avoid the PR (PR news) woes that have beset the likes of Goldman Sachs (NYSE: GS): Move back toward the era of pre-IPO, private partnerships. Barclays Capital (Barclays news) is thinking of such a move, according to media reports. By creating a partnership akin to the partnerships of Lazard Freres and Goldman Sachs before it went public, the firm would allow for "a loyal cadre of senior managers" to become partners and exert tight control over the firm, apart from the scrutiny and obligations of a public company.

This would be an interesting ploy. It would face many disadvantages in hiring and in acquisitions against public companies, but perhaps the partners would be more accountable for the whole of the firm's actions. In any case, the bank seems to be on the upswing, having used its purchase of the U.S. assets of Lehman Brothers (Lehman Brothers news) to catapult itself near the top ranks of investment banks. "Our aim is clear," CEO Bob Diamond told the Financial Times recently. "It's to be the premier global investment bank over the next couple of years."

For more:
- here's a Reuters article
- here's the FT article