Three co-founders of AllianceBernstein’s Autonomous research unit have resigned, raising questions about the dynamics surrounding the impending merger of AllianceBernstein’s equities business with French bank Societe Generale (SocGen). Stuart Graham, a renowned banks analyst and one of the co-founders, is set to depart in March, taking a six-month break. The other two co-founders, Ed Allchin and Manus Costello, are also leaving, with Costello joining Standard Chartered as the global head of investor relations in April. These departures could present challenges for SocGen and AllianceBernstein as they navigate their joint venture, blending SocGen’s equities trading expertise with Bernstein’s research capabilities.
Stuart Graham, who joined AllianceBernstein in 2019 after the firm acquired the financial sector-focused research firm Autonomous, plans to take a temporary break from work. While Graham’s departure is a loss for AllianceBernstein, the exits of Allchin and Costello are notable, particularly as Costello assumes a new role at Standard Chartered. The departure of key figures ahead of the joint venture’s completion may impact the smooth integration of operations.
The joint venture, announced in late 2022, was initially anticipated to close by the end of 2023. However, an amendment to SocGen’s registration document in August 2023 indicated a revised timeline, with the closure expected in the first half of 2024 due to pending regulatory approvals. Both AllianceBernstein and Societe Generale declined to comment on the recent departures.
Stuart Graham, a prominent figure in bank analysis, founded Autonomous in 2009, establishing a reputation for insightful analysis in the European banks equity research space. The departure of such experienced professionals raises questions about the potential impact on the strategic direction and leadership of the joint venture.
The deal involves Societe Generale acquiring an initial 51% interest in the partnership, with an option to reach 100% ownership after five years. The merger is a crucial step for Societe Generale to revitalize its position in the market and compete more effectively against rivals like BNP Paribas, extending its reach beyond core European markets.
In response to the leadership changes, Bernstein CEO Robert van Brugge outlined key appointments in a December memo. Geoff Elliott is set to take over from Manus Costello as Director of Research, Andreas Vollmer will assume Ed Allchin’s role as Head of European Sales and Access, and Chris Cant will become the head of European Banks Strategy, succeeding Stuart Graham.
The memo also highlighted that Autonomous, with a team of over 60 professionals, will continue to operate as a separate subscription product with its own research team following the launch of the joint venture later this year. This strategy aims to maintain the autonomy and distinctiveness of Autonomous within the larger entity. While the departures of the Autonomous co-founders introduce a degree of uncertainty, the outlined leadership transitions and the commitment to preserving Autonomous as a separate subscription product signal a strategic approach to manage the evolving landscape of the joint venture. How the new leadership steers the joint venture and maintains the quality of research and analysis will be closely watched as the deal progresses towards completion in the coming months.
