PRIME MINISTER Keir Starmer has appointed prominent city adviser Varun Chandra as his special adviser on business and investment, reported The Financial Times.
Chandra, previously managing partner at the London-based consultancy Hakluyt, will now be the main point of contact between Downing Street and corporate executives as well as international investors.
The report said that his expertise and extensive network will be crucial in fostering these relationships.
Chandra, 39, has resigned from his lucrative role at Hakluyt, where he earned £2.1 million in the year up to June 2023.
According to FT, the Asian business leader's appointment comes as the Labour government prioritises economic growth and seeks private investment to fund new infrastructure projects, marking a departure from the policies of Starmer's predecessor, Jeremy Corbyn.
Hakluyt, founded by former MI6 officers, advises many of the world's most valuable companies and top private equity firms.
The group, chaired by former Tory leader Lord William Hague, gathers intelligence through its 200 staff and a global network of business and government experts. Companies use this information to guide decisions on corporate, regulatory, and geopolitical issues, including mergers and acquisitions.
Under the new role, one of Chandra's initial tasks will likely involve managing relations with the private equity sector, particularly as Labour plans to close tax loopholes benefiting buyout executives.
His background includes a stint as an investment banker at Lehman Brothers and working closely with former prime minister Tony Blair for six years in private advisory business. At Hakluyt, he played a key role in transforming the consultancy from a shadowy operation into a mainstream professional services firm.
This included launching Hakluyt Capital and raising $50m (£39m) for its first venture capital fund, aiming to deepen ties with Silicon Valley.
In his new role, Chandra will leverage his networking skills to attract investments while government ministers handle the daily operations of running the country.
Chandra's influence extends to recruiting notable figures like Sir Olly Robbins, former Brexit chief negotiator, to Hakluyt. Robbins, now responsible for corporate clients in Europe and the Middle East, is poised for a senior role in the Starmer administration.
Additionally, Chandra brought in Emily Benn, granddaughter of Tony Benn, indicating Labour's strategic alignment.
Franck Petitgas, a former Morgan Stanley banker, previously held the position of business adviser to Downing Street during Rishi Sunak’s administration.
