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Liberum and Panmure Gordon will merge to create the UK’s largest independent investment bank.
Liberum was founded by Guernsey resident Shane Le Prevost, who will become the enlarged group’s non-executive chair.
It has an office in the island.
Former Barclays executive Rich Ricci will lead the new entity, which will be rebranded as Panmure Liberum.
“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,” said Mr Le Prevost.
Global investment firm Atlas Merchant Capital will provide financial backing and liquidity.
“Combining the financial strength of Atlas Merchant Capital with our culture of employee ownership is a highly compelling proposition,” said Mr Le Prevost.
“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.”
The value of the deal has not been announced.
Pictured: Panmure Gordon's LinkedIn post on the deal.
Regulatory approval for the merger will be needed from The Guernsey Financial Services Commission as well as the regulators in the UK and US.
The deal comes at a challenging time for Europe’s investment banks, hit by the twin impacts of interest rate uncertainty and rising geopolitical tensions.
Panmure Liberum will become the largest adviser to UK-quoted companies with over 250 retained corporate clients.
It will be ranked number one for UK initial public offerings under £1bn in market capitalisation over the past five years.
Mr Ricci is currently chief executive of Panmure Gordon, having been hired by former Barclays chief executive Bob Diamond.
Mr Diamond owns Panmure Gordon after his Atlas Merchant Capital vehicle acquired the group in 2018.
Mr Ricci 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.”
Liberum was founded in September 2007.
Subsidiary Liberum Wealth is based in Guernsey.
The merger is subject to regulatory approvals from the UK’s Financial Conduct Authority, the Financial Industry Regulatory Authority in the US and the GFSC.
Both Panmure Gordon and Liberum will continue to operate as standalone entities until all conditions to the completion of the merger are met.
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