Giuliani , in conjunction with Bear Stearns’ merchant banking arm, will be launching a new fund to invest in “anti-terrorism” companies. The $300 million fund will invest in companies developing technology used to detect a terrorist threat, make a building or a sensitive facility more secure, as well as fingerprint and iris scanning technology, Giuliani told Reuters.
“We are looking at companies that are already operating and already have a track record – not start-ups – and that are in the security and anti-terrorism area,” Giuliani said.
Primarily though, Giuliani and his consulting firm, Giuliani Partners LLC, will take stakes mostly in private companies held by the Bear Stearns fund. No companies were cited by name.
John Howard, the head of merchant banking at Bear Stearns, said the deal benefits both sides. Giuliani Partners includes many of Giuliani’s former aides from his two four-year terms as mayor through 2001. The firm has numerous ties to the security industry and will bring the industry relationships to the new fund.
Others Getting In
Apparently the idea has caught on, as Giuliani confirmed that his group is in discussions with other Wall Street firms about setting up similar ventures. This definitely represents an interesting marriage, since the former US attorney in Manhattan built his reputation on prosecuting high-profile financial crimes.
However, Giuliani said he had no problem with his current ties to Wall Street, despite his past prosecution of Wall Street banks. “I think that Wall Street is no different that any place else,” he said. “(Wall Street) has a lot of very good people, a lot of very honest companies, and it has some unscrupulous people.”
Outside of the investment industry, several companies have hired Giuliani Partners as a security consultant, including the utility Entergy Corp. They also work with the government in Mexico City.