Bacon returns to banking at Morgan Stanley

Peter Bacon, the former Credit Suisse financial sponsors head, is joining Morgan Stanley after an interlude with a hedge fund, just as the US bank’s potential for conflict has grown with its relaunched investment capacity.

Peter Bacon, the former Credit Suisse financial sponsors head, is returning to investment banking to strengthen Morgan Stanley’s commitment to its private equity clients.

Bacon’s move comes just a month after the bank re-ignited its private equity investment business with the hire of Graham Keniston-Cooper. Cooper, who joined after Lazard pulled the plug on his plans to start a buyout business a year ago, is European head of planned $6 billion fund.

Morgan Stanley gave its private equity fund management business its independence in 2004 when the bank had a different appetite for risk, a source said.

Bacon’s role will be central to managing any potential for conflict between his clients and the bank’s fund. He is joining as a managing director, chairman of the European financial sponsors group and co-head of global leveraged and acquisition finance, after an interlude at a hedge fund.

He starts on 1 September in London, reporting jointly to Christopher Carter, vice chairman of institutional securities and head of global capital markets, and Franck Petitgas, head of European investment banking.

Carter and Bacon were colleagues at Credit Suisse from 2000 to 2005.

Most recently Bacon was a partner at hedge fund GSO Capital Partners, founded by former Credit Suisse bankers, in London.