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In the Hot Seat by Miles Nolan
http://www.growthcompany.co.uk/features/1630143/in-the-hot-seat-by-miles-nolan.thtml
13/06/2011 Miles Nolan

The well-connected Michael Parnes is the founder of Mayfair-based stockbroking firm Old Park Lane Capital

At just 31, Michael Parnes is probably the youngest chief executive of a stockbroking firm in London. This achievement is no mean feat, so we meet at his offices in Berkeley Square to discuss how he has done it.

Parnes went to Manchester University to study philosophy and literature, so this provides little clue. However, he is the son of Anthony Parnes, a City legend and one quarter of the Guinness Four ? so broking is clearly in the blood.

His first job was at Corporate Synergy, the forerunner of Blue Oar, which itself then morphed into Astaire Securities. During his career at the broker he was involved in dealing, institutional sales and even spent a six-month training stint as part of his broking education at settlements giant Pershing.

He says, ?You can?t set up a great firm without knowing exactly what goes on in it.? With this in mind and with a view that he was ?doing a great job for clients and his employers and being poorly remunerated himself?, he decided to go it alone and left in 2005. This followed a successful deal whereby he introduced biometrics firm RC Group to his former employer, which allowed Parnes to repay his student debts and leave cash in the bank for a new venture.

Parnes then set up Old Park Lane Capital (OPLC) in 2008. The offices were originally based on Park Lane just near the Dorchester in a building owned by Al Fayed. As the business expanded, in 2010 he moved out to the current premises, which are owned by the Abu Dhabi royal family.

With around 15 employees and counting, OPLC is split into two divisions: ?invitation only? and institutional stockbroking and corporate broking. A part of the success has been his ability to attract a raft of ultra-high-net-worth clients and family offices as clients, names that he is unable to reveal but include the great and good. Services include CFDs, share dealing and spread betting, but the key is to offer a highly personal and bespoke service. A strict due diligence process is applied to taking on corporate and dealing clients, and many do not make the grade. For its loyal clients, OPLC also plans to launch a concierge offering to provide access to hotels, seats at the best restaurants, airport lounges and chauffeur services.

The second string is corporate broking, which currently has 11 select clients, but is very much focused on the natural resources space. Parnes points out the recent success of Range Resources as a good case study. Having issued around 17 research reports, it recently raised ?20 million for the Australia-based oil and gas firm. He argues that ?liquidity is key? and that there is a major requirement for a good aftermarket. By having access to a pool of capital (its high-net-worth clients), when stock is offered in the market OPLC can help find a buyer. In the case of Range, share volumes have soared and the shareholder register has changed significantly.

A niche that OPLC is carving out is in the listings of AIM/ASX companies. Next on the agenda is natural resources firm Red Emperor ? it plans to dual list on AIM through OPLC shortly.

OPLC is profitable and cash rich ? following a recent change of year-end it expects to post profits of at least ?1.5 million this year.

Non-executive chairman is David Jackson, a veteran of 35 years in the banking and financial services industry, most notably in senior functions at Standard Chartered. The well-groomed Parnes opines that ?we have a lean cost structure?, however he is on the lookout for selective new staff hires.

Michael Parnes lives in Chelsea and on 12 June is due to be married to Lucy Clarkson, the former Lara Croft model. The lavish affair is rumoured to include guests such as media mogul Simon Cowell and property magnate Vincent Tchenguiz.

Tags: Michael Parnes, Range Resources, Well connected

Companies: Range Resources