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The yet-to-be-named M&A shop that’s about to make some noise

Yelling

If you’ve ever been passed over for a promotion and found yourself out of work, try looking to Paul Taubman for motivation. The former co-head of Morgan Stanley‘s investment bank, who reportedly left the firm after being passed over for a promotion given to his biggest rival, is enjoying the last laugh.

A rainmaker with a bulky Rolodex, Taubman has been on a great run after essentially being forced into retirement in 2012. Following a bit of time off, Taubman decided to do some advisory work on his own. Based out of a friend’s law firm and without even employing a secretary, Taubman advised on two of the biggest M&A deals over the last year. He personally finished 11th on the 2013 league tables, ahead of several well-known banks.

Sensing opportunity, Taubman launched his own advisory boutique earlier this year and began hiring. Not surprising, every one of his new recruits has been poached from his former employer, Morgan Stanley. That must feel good.

Then, on Friday, private equity giant Blackstone announced that it is spinning off its advisory unit and combining its with Taubman’s new firm, PJT Partners. Taubman has been named the company’s chairman and chief executive officer. Not a bad two years.

The firm, which has yet to be named, looks poised for explosive growth. Blackstone is combining Taubman and his growing roster of Morgan Stanley alums with its own advisory business that has been stuck in neutral only because of the firm’s need to avoid conflicts of interest. Its dealings on the private equity side were preventing Blackstone’s M&A bankers from working on deals with both clients and rival private equity firms.

“Our folks were not getting hired by our competitors,” Joan Solotar, Blackstone’s head of external relations and strategy, told the Wall Street Journal. Now, as an independent enterprise, the yet-to-be-named M&A shop has no restrictions. And they have Taubman.

A Blackstone spokesperson declined to comment on the new company’s hiring plans, but it appears to be primed for growth. Hint: it will help if ‘Morgan Stanley’ is somewhere on your resume.

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