FBR Capital Markets, a Virginia-based investment bank serving the middle market, has entered into a definitive agreement to acquire Watch Hill Partners, a corporate finance advisory practice based in New York. The Watch Hill Partners team will become part of the corporate advisory practice within FBR Capital Markets’ newly reorganized investment banking department.
Additionally, FBR Capital Markets has announced a reorganization of its investment banking department, which will be comprised of three primary practice areas. It has added that it is integrating its capital markets group into investment banking and creating a third practice area, a corporate advisory services. The company expects that the reorganization of investment banking into these three areas will create a model for FBR Capital Markets’ full suite of corporate finance capabilities, including the firm’s new convertible securities, restructuring finance & advisory services and credit sales & trading products.
Reportedly, James Neuhauser, executive vice president and head of investment banking will continue in his position and will also serve as chairman of the newly formed investment banking management committee. James Kleeblatt has been promoted to vice chairman of FBR Capital Markets and will continue to lead the equity and debt capital markets functions. David Knowlton will become vice chairman of investment banking and head of the corporate advisory practice.
Messrs. Kleeblatt and Knowlton will be joined by Kenneth Slosser, senior managing director, group head of financial institutions and Joseph Nardini, senior managing director, group head of diversified industrials as members of the investment banking management committee.
However, the Watch Hill transaction is expected to close in the third quarter of 2009. However, the terms of the agreement were not disclosed. Watch Hill Partners was represented by Keefe, Bruyette & Woods and Herrick, Feinstein.
