Broker-dealers Pierpont Securities and Cortview Capital Holdings have agreed to merge in to create a premier broker-dealer that offers a full suite of fixed income products, and a diverse range of sophisticated finance, capital markets and advisory services. The transaction, which is subject to approval by FINRA, is expected to close in the fall of 2012. Financial terms of the transaction were not disclosed.
The combined company will provide institutional and middle-market clients with access to a complete range of fixed-income offerings, an enhanced sales and trading platform, and an expanded distribution model which includes a regionally-based, generalist sales force.
The combined company will be known as Pierpont-Cortview Securities, and will be led by Mark Werner, chief executive officer of Pierpont. T. Kelley Millet, Cortview’s CEO, and Thomas Connor, president of Pierpont, will serve as co-presidents and Joseph Blauvelt, chief financial officer of Pierpont, will serve as CFO and treasurer of the new firm. The company will have more than 160 employees across 12 offices and will be headquartered in Stamford, Conn.
“Cortview’s strong complementary portfolio of credit, rates, and mortgage products combined with our high quality liquidity solutions, execution services, and strategic advice will help us better meet our clients’ needs across a broader spectrum of fixed-income solutions,” said Werner. “I and other members of the Pierpont senior management team have worked closely with Kelley in the past, and we look forward to partnering again in this new company. We look forward to leveraging our respective strengths and deep knowledge of the financial and capital markets as we continue to grow a relationship-driven, fixed income broker-dealer.”
“Pierpont is the ideal partner for Cortview and we believe this transaction will provide significant benefits to our customers, partners and employees,” said Millet. “Together, we have a team of highly talented professionals who focus on building relationships, consistent execution and a relentless dedication to clients of all sizes and investment levels. We also share a common vision based on integrity, trust, professionalism, and a commitment to client service.”
Since inception, Pierpont has raised $220 million from its founders and strategic investors – Stone Point Capital and General Atlantic. Cortview was founded in 2010 with backing from leading private equity firm Warburg Pincus. Stone Point Capital and General Atlantic will remain investors in Pierpont-Cortview Securities following closing of the transaction. Shearman & Sterling served as legal advisor to Pierpont and Willkie Farr & Gallagher advised Cortview.