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

 - 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*:

• Over 250 quoted corporate clients, with an average market capitalisation in excess of £250m
• Ranked #1 for UK IPOs** 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*** 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****
• 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.

MEDIA CONTACTS:

FTI Consulting

Ed Berry

+44 (0)7703 330 199

edward.berry@fticonsulting.com

 

* Based on pro forma data for each of Panmure Gordon and Liberum as at 31 December 2023

**Source: Dealogic

***Source: Merger Market (Financial Advisor, UK Public M&A)

****Including via research partnerships