Evercore Partners, a New York-based investment banking firm, intends to expand its investment banking platform by establishing a US cash equities business and broadening its capital markets advisory services.
These growth initiatives will focus on building equity research, distribution and new issue origination capabilities, concentrating initially on providing independent expertise in industry sectors that complement its advisory franchise.
Charles Myers has joined Evercore as a senior managing director and will lead the firm’s cash equities business. Mr Myers was most recently the global head of equities at Fox-Pitt Kelton. Jim Birle has joined as a senior advisor and will lead the firm’s effort to advise its clients on strategic capital markets issues. Mr Birle was most recently the head of global equity capital markets at Merrill Lynch.
The cash equities business will be majority-owned by Evercore and will have additional strategic investors and founding partners, including Bart McDade, the former president and global head of equities at Lehman Brothers and, Mr Myers and Mr Birle. Mr McDade will work closely with Evercore and the founding partners to establish the equities business and attract the research, sales and trading professionals.
The Evercore cash equities business is expected to launch during the first half of 2010 following the operational buildout required to support equity sales and underwriting. During this time, Evercore expects to recruit additional research, sales and trading professionals and launch research coverage of targeted sectors. Evercore and the founding partners will commit to maintain the appropriate level of capital to support a client-driven business of secondary and new issue activity, with a minimum initial capitalization of $50mn.
Ralph Schlosstein, president and CEO of Evercore Partners, said: “We have brought together an unparalleled leadership team and I am confident that they will build a strong franchise that addresses the needs and expectations of our clients, our shareholders and our professionals.”
Roger Altman, chairman of Evercore Partners, said: “In recent years, Evercore has increasingly advised its clients on financing issues. These steps will allow us to do that more broadly and more effectively, especially because we will not have the potential conflicts of interest found in large, multi-line financial institutions.”
Mr Myers said: “In today’s volatile markets, sophisticated institutional investors expect independent and insightful equity research together with superior execution services. These investors are looking to new providers for broad industry perspective and actionable ideas. Evercore is the firm where the best and brightest in equity research, sales and trading can come together as a team to respond to this meaningful market opportunity.”
Mr Birle said: “I look forward to expanding Evercore’s capabilities and providing comparable advisory services on the strategic capital markets issues confronted by Evercore’s global client base.”
Mr McDade said: “Evercore, under Mr Altman and Mr Schlosstein’s leadership, has established itself as one of the premier independent investment banks on Wall Street today. I look forward to investing in and helping Evercore, Mr Myers and Mr Birle build an extraordinarily high-quality equity and capital markets advisory business and expanding the firm’s world-class franchise.”
