Crains New York - June 4, 2012 - (Page 1)

INSIDE TOP STORIES Drink stink: Big Soda aims to fight Bloomberg ban PAGE 2 ® REPORT THE A TO Z GUIDE TO SILICON ALLEY PAGE 15 JUNE 4-10, 2012 PRICE: $3.00 VOL. XXVIII, NO. 23 Sugar buzz: Readers weigh in on the idea PAGE 10 IT’S ALL RELATED Trio dominates development in NYC. Here’s how they do it BY DANIEL MASSEY When Jeff Blau started at The Related Cos. in 1989, the first task Chief Executive Stephen Ross gave the 21-year-old was to buy up auto shops in Willets Point, Queens. Related built stores for Kmart, and the retailer wanted one in the area. Nothing came of it, but 23 years later, Related is about to gain control of Willets Point in a high-stakes gamble to salvage the city’s most complicated real estate development project. To understand why Related triumphed over three other bidders there is to understand why it has become the leading developer in a city notoriously difficult to build in: Related thrives on that complexity. It is better at navigating the obstacles—from bargaining with unions to compromising with city officials—and more willing to take risks than its rivals. It thinks in decades, not quarters. See RELATED on Page 23 “IF THE CITY DOES WELL, WE ALL DO WELL,” said Related Cos. CEO Stephen Ross, depicted here with partners Jeff Blau (left, in illustration) and Bruce Beal Jr. (right). WWW.CRAINSNEWYORK.COM To your health: Late nightclub owner bequeathed bar’s profits to hospitals PAGE 3 Tax cuts for wage hikes: A political deal takes shape in Albany THE INSIDER, PAGE 8 BUSINESS LIVES GOTHAM GIGS NASCAR’s marketing chief hits the road P. 25 ● ANNE FISHER Seed money for social entrepreneurs P. 25 ● MOVERS & SHAKERS Tracey Stewart finds her “moment of Zen” P. 26 GAEL GREENE A dream of a wine bar opens P. 27 Big banks losing M&A biz Bad PR taking its toll as smaller i-banks grab greater share of corporate mergers BY AARON ELSTEIN For all the public relations debacles suffered by the giants of Wall Street, there never was much evidence that negative PR was actually hurting their business. Until now, that is. Cracks are starting to show in a highly lucrative franchise for the big banks: advising blue-chip corporations on their mergers and acquisitions. Goldman Sachs, Morgan Stanley and a handful of big institutions have dominated this field for decades and are especially eager to protect it, because M&A advisory work means ultraprofitable fees with less risk and regulatory scrutiny than trading or other Wall Street activities. Yet there are unmistakable signs that merger-minded corporate leaders are starting to look for advice from anyone but the toobig-to-fail banks. These banks’ take of all the fees generated by merger activity in North America so far this year has dropped to 56% from 70% five years ago, according See BIG BANKS on Page 24 ● SHIFTING FEE-SCAPES M&A fee market share MAJOR BANKS 2007: 70% INDEX NEW YORK, NEW YORK __________________________6 VIEWPOINT ___________________________________________________10 OPINION _________________________________________________________11 SMALL BUSINESS ___________________________________12 REAL ESTATE DEALS _____________________________13 CLASSIFIEDS ______________________________________________20 HOT JOBS ______________________________________________________25 THE WEEK AHEAD ___________________________________27 E-tailer becomes retailer Bonobos stores hope to replicate online success BY ADRIANNE PASQUARELLI Step off the elevator into the newly expanded Chelsea headquarters and “guideshop” of e-commerce menswear brand Bonobos Inc. and you hit a sea of color—magenta khakis, turquoise short shorts and corn-yellow oxfords. When the company debuted five years ago, most young men wouldn’t have been caught dead in seven-inch halibut-print swim trunks. Now See E-TAIL on Page 23 2012: 56% BOUTIQUE BANKS 2007: 8% NEWSPAPER 2012:17% Figures YTD. Source: Sanford C. Bernstein & Co. fred harper http://WWW.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - June 4, 2012

Crains New York - June 4, 2012
Table of Contents
Drink stink: Big Soda aims to fight Bloomberg ban
To your health: Late nightclub owner bequeathed bar’s profits to hospitals
New York, New York
Tax cuts for wage hikes: A political deal takes shape in Albany
Sugar buzz: Readers weigh in on the idea
Viewpoint
Opinion
Small Business
Real Estate Deals
Classifieds
NASCAR’s marketing chief hits the road
Seed money for social entrepreneurs
Hot Jobs
Tracey Stewart finds her “moment of Zen”
A dream of a wine bar opens
The Week Ahead

Crains New York - June 4, 2012