TORONTO, ON / ACCESSWIRE / November 20, 2020 / Finance executives at Toronto-based Hamilton Chukyo Brokerage have today commented on boutique investment bank Perella Weinberg Partners as it seeks to take its advisory business public via a special purpose acquisition company in a deal valuing the business unit at $1 billion.
'If the deal goes ahead, Perella Weinberg Partners will join a long list of companies that have shunned the traditional IPO process in favour of a Special-purpose acquisition company vehicle,' commented Michael Williams, Head of Private Wealth Management at Hamilton Chukyo Brokerage.
Perella Weinberg Partners asset management business, which holds $10 billion in assets, would remain independent.
According to data collected by Hamilton Chukyo Brokerage, Perella Weinberg Partners, which was founded in 2006 by seasoned brokers Joseph Perella and Peter Weinberg, is planning list at the beginning of 2021.
Special-purpose acquisition company (SPAC) have been one of the hottest products on Wall Street this year, with a whopping $55 billion raised. The special purpose acquisition vehicles use money generated on the stock market to seek out private firms and take them public.
The structure has been criticized for the incentives offered to vehicle sponsors as well as the form of due diligence being carried out on firms that emerge with a public listing without needing to go through the traditional regulatory and investor analysis of an IPO.
'Perella Weinberg Partners has been aiming to go public for many years. The company hired advisory firms Goldman Sachs and JPMorgan Chase to manage an offering in late 2018, and made crucial leadership changes in preparation for the listing,' commented Anthony Roberts, Head of Institutional Trading at Hamilton Chukyo Brokerage.
Mr Weinberg became the company's chief executive last year, while Bob Steel, who joined Perella Weinberg Partners in 2014 as chief executive, became chairman of the firm.
By going public, Perella Weinberg Partners will join other boutique investment companies including Evercore, Greenhill, Lazard and, more recently, Moelis & Co. Its listing strategy arrives as merger and acquisition activity has intensified in recent weeks after a significant slowdown earlier in the year due to uncertainty relating to the pandemic.
The fourth quarter of 2020 has so far been the third-best in two decades for mergers and acquisitions. Since the start of October, $612 billion of deals have been signed, up from $461 billion over the same period in 2019 and $491 billion in 2018.
Hamilton Chukyo Brokerage provides financial advice and asset management services to private, institutional and corporate clients worldwide.
Christian Marcus, Head of Market Research
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SOURCE: Hamilton Chukyo Brokerage
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