The U.S. Commerce Department has tapped top Morgan Stanley banker Michael Grimes, who was a main figure in Elon Musk’s acquisition of Twitter (now X), to lead the sovereign wealth fund being pushed by President Donald Trump, new reports revealed.
Grimes left behind 30 years of tenure at one of the country’s leading banks to join the Trump administration under the Commerce Department and lead the new project, Reuters and Bloomberg reported late Wednesday, citing people familiar with the matter who asked not to be identified as the matter has not yet been made public.
Who is Michael Grimes?
Grimes is one of Morgan Stanley’s top bankers and investment industry dealmakers, but he is most prominently known for helping Musk during his acquisition of then-Twitter.
He is known for his work in locating equity investors to buy into the takeover and reduce the financial burden on Musk amid surging interests in 2022.
The initial deal fell apart but Musk was still able to secure the funds needed for his $43 billion acquisition of the social media platform. Grimes is believed to have retained close ties with the tech billionaire since then.
An industry expert called the recruitment of a prominent dealmaker like Grimes a “very smart” move.
Grimes has often been called the “Wall Street Whisperer of Silicon Valley” but “rarely” speaks with reporters or journalists.
What is the US Sovereign Wealth Fund?
Trump ordered the creation of a sovereign wealth fund last month, designating Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to oversee the fund’s creation.
Sources told Bloomberg that the project is still in the very early stages and even Grimes’ leadership may be subject to change.
One source said an idea being floated is that the fund will be paired with the U.S. International Development Finance Corp. and Export-Import Bank to drive American investment in various areas that play a crucial role toward national security, including technology, manufacturing, and defense.
