BMO Capital Markets has appointed a new head for a team of investment bankers based in New York and Chicago who specialize in helping U.S. private equity firms, stressing that it expects activity in that area of the market to ramp up in the year ahead.

The firm said Tuesday it has appointed Dirk Leasure as head of its Financial Sponsors Group, which works closely with private equity firms by providing advisory services as well as acquisition financing when they pursue leveraged buyout transactions.

BMO said that it anticipates a substantial increase in private equity activity into 2010 and beyond, as markets recover. Some of the trends it expects include: a significant increase in the size and number of transactions involving sponsors looking to sell companies from their portfolios as buyers are increasingly able to obtain debt financing; a notable rise in the size and number of transactions involving IPO exits; and, more transactions where sponsors are buying companies as new investments.

It also believes that sponsors, particularly in the middle-market, will continue to be more selective in choosing the investment banks they partner with.

“The private equity community remains vibrant and a strong source of investment and corporate banking revenue. As the financial markets and our economy recover, financial sponsors will become an even more active and important client group,” said Dominic Petito, co-head, U.S. investment & corporate banking at BMO Capital Markets.

Prior to joining BMO Capital Markets in 2002, Leasure spent eight years with Goldman Sachs working with financial sponsors in their leveraged finance group, including two years leading that group’s efforts with financial sponsors in London.

IE