PEOPLE / BARRY BARBASH: FROM SEC IN D.C. TO M&A WORLDWIDE

Investment management is becoming increasingly global, and Shearman & Sterling doesn’t want to be left out. So the respected New York white-shoe law firm has nabbed the nation’s top mutual fund regulator to help it raise its profile.

Barry Barbash, 44, will have completed exactly five years as head of the Securities and Exchange Commission’s Division of Investment Management when he becomes a partner in Shearman’s Washington office in early October. Seeking to expand its investment management business, the firm hopes to draw on his background — which in addition to his SEC stint includes experience representing mutual funds and other investment managers as a partner at Willkie Farr & Gallagher in New York.

Shearman & Sterling is known for its representation of companies in major deals, such as the proposed mergers between Citicorp and Travelers Group and Daimler-Benz AG and Chrysler Corp., as well as others on the drawing board, where Mr. Barbash’s connections will certainly come in handy.

The firm is looking to expand its investment management practice both domestically and internationally, says Stephen Volk, a senior partner. “U.S. investment banks, commercial banks, insurance companies, are all looking to expand their investment management activities, their money management activities, their asset gathering activities,” he says.

At the same time, “The European institutions are also bulking up in the area, especially as the importance of equities as an investment alternative for European individuals” is increasing.

“We would expect that Barry would be involved in strategic transactions involving various players in this industry, in the day-to-day advice to fund managers, to money managers, with capital-raising activities , advising on compliance with the securities laws and the other applicable laws and helping clients who want to enter those industries figure out how to do it intelligently and sensibly,” Mr. Volk says.

Mr. Barbash sees the move as an opportunity “to develop an investment management practice that is diverse and international, and to participate with the industry that’s shown incredible dynamism and growth.”

He looks forward to being able to work with a variety of businesses, including variable annuity and insurance companies, hedge funds, closed-end funds, unit investment trusts, venture capital firms and financial planners, as well as new products being offered by banks and insurance companies.

He is especially attracted to Shearman & Sterling’s international presence. With 625 lawyers in 14 offices throughout the world, “Shearman is one of the true international law firms,” says Mr. Barbash.

During his five years with the SEC, he has been its principal representative at a number of international securities forums and has worked on projects and papers about regulation of mutual funds.

His work has included research into how investment management companies use the Internet to market in different countries, supervisory procedures by regulators over international funds, how mutual fund shares are priced in an international market, and the issue of cross-border sales.

Now is an opportune time to get into international investment management, says John Heywood, a principal in charge of the non-U.S. mutual fund business of Vanguard Group Inc. in Valley Forge, Pa. “I see most U.S. fund companies making significant efforts overseas.”

Mr. Barbash’s principal calling card, however, may be the fact he is respected in the mutual fund industry. “Most importantly,” Mr. Volk says, “we’re just getting a great new partner.”