In a stunning display of post-political clout, former UK chancellor George Osborne has collected a massive £30 million windfall from the City advisory firm where he now plies his trade. According to inside sources, Osborne was one of just three partners at Robey Warshaw, a discreet but highly influential investment bank, to share in the enormous payout after the boutique firm posted record annual profits.
From Westminster to Wall Street: Osborne’s Lucrative Career Shift
Since abruptly departing front-line British politics in 2016, George Osborne has steadily built a lucrative portfolio career straddling the worlds of finance, media and business consultancy. But his reported £30 million share of the spoils at Robey Warshaw suggests the former chancellor has truly hit the jackpot in his latest incarnation as an investment banker.
Osborne joined the Mayfair-based firm in April 2021, teaming up with its co-founder Simon Robey, a legendary City dealmaker nicknamed the “trillion-dollar man” for his role in a string of blockbuster corporate transactions. With such firepower on board, it appears Robey Warshaw has gone from strength to strength.
Robey Warshaw’s Dealmaking Prowess
Filings at Companies House reveal that Robey Warshaw generated a pre-tax profit of £70 million in the year to March 2022, more than doubling the £31.8 million it made the previous year. The highest-paid director, presumed to be Robey himself, pocketed £40.5 million, while Osborne is thought to number among the trio of partners sharing the remaining £30 million bonanza.
The boutique investment bank advises an elite roster of FTSE 100 and US clients on major corporate deals and transactions. Over the past year, its client list has included names like insurer Direct Line, which Robey Warshaw advised during a spate of rebuffed takeover attempts, most recently a £3.3 billion bid from rival Aviva.
Robey Warshaw occupies a unique and lofty perch in London’s financial district – a small firm that routinely lands roles on the largest and most complex deals.
– City of London financial commentator
Osborne’s Contacts Book Comes in Handy
Some of Robey Warshaw’s recent mandates have played directly to Osborne’s strengths and contact book. According to a source close to the firm, the ex-chancellor personally led the team advising Abu Dhabi-based investor RedBird IMI on its attempted acquisition of the Telegraph newspaper group – though the £600 million tilt was ultimately unsuccessful.
Osborne’s political and media connections were no doubt useful on the Telegraph brief, given his stint as editor of the Evening Standard after leaving the Treasury. But the “George effect” may be paying wider dividends for Robey Warshaw as it expands beyond its core UK market.
A Growing Global Footprint
In addition to its longstanding relationships with British blue-chips like Vodafone, HSBC and National Grid, the firm has recently picked up global mandates such as advising Microsoft on its high-profile takeover of gaming giant Activision Blizzard.
That growing international profile is reflected in Robey Warshaw’s latest hire: dealmaker Chetan Singh, who previously held senior roles at Goldman Sachs in New York. Singh is now the fourth partner at the firm alongside Robey, Osborne and Philip Apostolides.
The Value of a High-Powered Rolodex
For the already-wealthy Osborne, a £30 million windfall from Robey Warshaw may seem like a very pleasant but not strictly necessary boost to his bank balance. Since leaving politics, he has accumulated a slew of lucrative positions:
- Advisor to BlackRock, the world’s largest asset manager
- Chairman of the Northern Powerhouse Partnership
- Visiting fellow at Stanford University’s Hoover Institution
- Remunerative speaking engagements around the world
But more than just extra spending money, the Robey Warshaw payout is a potent symbol of the ongoing value of Osborne’s bulging rolodex and dealmaking savvy in the post-Brexit era. At the very highest echelons of corporate finance, those intangible assets appear to remain in great demand, even as the nature of the British economy shifts underfoot.
A Payday Sparking Fierce Debate
News of Osborne’s mammoth £30 million payday has ignited a heated discussion in Britain about the ever-revolving door between Westminster and the City of London. Critics argue it is the latest example of politicians cashing in on their connections and insider knowledge.
But defenders of the practice maintain that individuals like Osborne bring valuable skills, experience and relationships to top financial firms, and deserve to be well-compensated by the market as a result. Robey Warshaw clearly believes Osborne has made a meaningful contribution to its recent successes.
Riding the Dealmaking Wave
Whether Osborne’s move from the dispatch box to the lucrative world of investment banking merits applause or criticism, his timing appears impeccable. With a series of major geo-economic ruptures from Brexit to the war in Ukraine to U.S.-China trade tensions roiling global markets, demand for well-connected financial fixers and mediators is running red-hot.
Companies are facing historic disruption across their operations and desperately seeking advice to navigate the turmoil. Firms like Robey Warshaw that can offer a political lens alongside financial analysis are incredibly sought-after right now.
– Senior London-based M&A banker
Against that turbulent backdrop, George Osborne’s journey from 11 Downing Street to the top of the Square Mile looks set to become an increasingly well-trodden – and richly-rewarded – path. Whether it serves the public interest in the process will remain hotly contested.
