RCS - Liberum Capital Ltd - Panmure Gordon and Liberum to merge

FTI ConsultingAnnouncement

16/01/2024 08:30

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RNS Number : 7718Z  Liberum Capital Limited  16 January 2024

Panmure Gordon and Liberum to merge to create the UK's largest independent
Investment Bank

 

-     Panmure Liberum will become the largest adviser to UK-quoted
companies with over 250 retained corporate clients and market leading teams in
Investment Banking, Research, Sales and Execution

 

-     Highly complementary combination built on a common culture,
entrepreneurial alignment and a shared strategic ambition to maximise the
significant long-term opportunities in UK corporate broking, advisory and
execution

 

-     Strong financial backing and liquidity of the enlarged group,
anchored by Atlas Merchant Capital, will underpin a resilient and scalable
platform primed for growth and diversification

 

-     Clients will benefit from strengthened sector expertise, wider
distribution and access to more pools of capital, and a larger trading
platform, with a goal of providing outstanding client service throughout the
economic cycle and to attract and retain the best industry talent

 

-     Shane Le Prevost, the founder of Liberum, will be the non-executive
Chair of the board of the enlarged group. The business will be led by a highly
experienced management team including Rich Ricci (CEO), Bidhi Bhoma (Deputy
CEO), David Parsons (Head of Equities) and Richard Morecombe (President, Head
of Origination & Business Development).

 

London, 16 January 2024 - Panmure Gordon and Liberum today announce an
all-share merger to create the UK's largest independent Investment Bank.
Panmure Liberum will have the biggest retained base of quoted clients across
the UK market and will bring together their combined entrepreneurialism, deep
and broad sector knowledge, and shared ambitions to establish a market leader
in UK Investment Banking.

 

The merger is highly complementary, with Panmure Gordon and Liberum having
minimal overlap across corporate clients and sector expertise.  The Group
will offer waterfront UK research coverage whilst clients will have access to
strengthened sector expertise, wider distribution, more pools of capital and a
larger trading platform.

 

Key metrics for the merged Panmure Liberum 1  (#_ftn1) :

 

·      Over 250 quoted corporate clients, with an average market
capitalisation in excess of £250m

 

·      Ranked #1 for UK IPOs 2  (#_ftn2) under £1bn market
capitalisation by deal volume over the last 5 years

 

·      An aggregate of £9.9bn of equity raised over the last 5 years

 

·      Ranked #1 3  (#_ftn3) for all UK public M&A in 2023 by number
of deals

 

·      Adviser to the largest number of UK quoted investment funds, with
an aggregate 70 clients

 

·      Research coverage of over 580 stocks across the UK and Europe 4 
(#_ftn4)

 

·      Trading relationships with more than 900 counterparties across
the UK, US, Europe and Asia

 

·      Market maker in over 750 stocks with All-Cap execution
capabilities across the UK, US, Europe and Asia; and

 

·      Offices in London, New York, Leeds, Cambridge and Guernsey

 

With the support of specialist financial services investor, Atlas Merchant
Capital, the enlarged business will have substantial financial backing and the
liquidity to support its long-term strategic ambitions. Panmure Liberum will
have a resilient and scalable platform that is structured to grow and to be
consistently profitable through the cycle.

 

The enlarged group will benefit from cost and revenue synergies and will have
the balance sheet strength to invest in growth and diversification
opportunities. Going forward, it will strengthen and complement its core,
rooted in high quality Investment Banking, Research, Sales and Execution, with
deeper expertise planned in M&A and private capital raising, and new
service lines to include debt advisory.

 

Both entities are committed to the long-term health of the UK's public equity
capital markets and believe strongly in the contribution that a vibrant public
market for UK equities makes to the strength of the economy. The creation of
Panmure Liberum will ensure that together it has the scale to be at the
forefront of key market initiatives to reinvigorate the appeal of UK listed
equities and of listing companies and funds in the UK.

 

Upon completion, the board of Panmure Liberum will comprise Shane Le Prevost
(Non-executive Chair), Rich Ricci (CEO), Bidhi Bhoma (Deputy CEO), David
Parsons (Head of Equities) and Richard Morecombe (President, Head of
Origination & Business Development) in addition to David Schamis and Sarah
Raimi from Atlas Merchant Capital and an independent Non-executive Director,
to be appointed.

 

Rich Ricci, CEO at Panmure Gordon said: "Over the last three years we have
doubled our corporate client base, made significant investment in talent and
materially increased our share of the UK market across our trading and
execution capabilities. In Panmure Liberum, we are combining two highly
complementary and culturally aligned businesses and creating a new force in UK
Investment Banking with an exciting long-term future. We have long admired the
impressive track record that Liberum has built in its 16-year history and we
now look forward to building on that momentum together."

 

Shane Le Prevost, Founder and Executive Director at Liberum, added: "We have
found a long-term partner with shared values and strategic ambitions to enable
us to capitalise on the significant opportunities ahead and take both firms to
the next level. Additionally, combining the financial strength of Atlas
Merchant Capital with our culture of employee ownership is a highly compelling
proposition. Both firms share an entrepreneurial approach that I am confident
will attract and retain the best industry talent to ensure that we provide our
clients with outstanding service throughout the cycle."

 

Bob Diamond, Founding Partner and CEO at Atlas Merchant Capital, said: "This
merger will lift the level and quality of service to mid and small-cap
businesses and investors in the UK and beyond. These businesses are the
lifeblood of the UK economy and require flexible and tailored solutions to
enhance their productivity. This is a very powerful combination and I am
excited by the prospect of Panmure Liberum raising the bar in the UK middle
market."

 

The merger is subject to regulatory approvals from the Financial Conduct
Authority (FCA), the Financial Industry Regulatory Authority in the US (FINRA)
and the Guernsey Financial Services Commission (GFSC). Both Panmure Gordon and
Liberum will continue to operate as standalone entities until all conditions
to the completion of the merger are satisfied.

--ENDS-

 

MEDIA CONTACTS:

FTI Consulting

Ed Berry

+44 (0)7703 330 199

edward.berry@fticonsulting.com (mailto:edward.berry@fticonsulting.com)

 

NOTE TO EDITORS:

About Panmure Gordon

Panmure Gordon is a UK based investment bank providing a full range of
services including Capital Raising, Corporate Advisory, Corporate Broking,
Investor Relations, Research, Execution and Investor Distribution to the UK,
US and Europe.

 

Under its current leadership team and the ownership of Atlas Merchant Capital,
Panmure has benefitted from significant growth since 2020. It was ranked 4th
overall Broker in II/Extel UK SMID Survey 2023, has increased its level of
value traded on LSE by over 60% in the last 3 years, and maintains a strong
commitment to investing in Research, Investor Distribution and Execution post
MIFID II. Panmure is the retained adviser to over 150 quoted corporates and
funds with 130 staff in London, New York, Leeds and Cambridge.

 

 

About Liberum

Liberum is a leading independent UK provider of investment banking, research,
sales and trading. Founded in 2007 as an employee-owned business, since
inception we have aimed to provide insight, honesty and a highly personalised
and value-adding approach to all our clients.

 

Companies receive unrivalled advisory work from our trusted and experienced
banking team. Institutional investors sourcing ideas receive direct access to
our seasoned sales team and research analysts, covering over 400 all cap
companies and funds*, along with introductions to companies, innovators and
thought leaders. Traders requiring high or low-touch execution from multiple
venues, with proper performance benchmarking, deal with us daily.

 

With 158 staff across the UK and North America, and well-established
connections in Continental Europe, our clients benefit from our trusted
relationships, expert industry knowledge and excellent track record in capital
raising.

 

*including via our research partners

 

 1  (#_ftnref1) Based on pro forma data for each of Panmure Gordon and Liberum
as at 31 December 2023

 2  (#_ftnref2) Source: Dealogic

 3  (#_ftnref3) Source: Merger Market (Financial Advisor, UK Public M&A)

 4  (#_ftnref4) Including via research partnerships

 

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