Thoughts on Intrepid - Houlihan Merger
Curious what everyone’s take is on the Intrepid–Houlihan Lokey merger.
I’m pretty mixed on it.
The bull case:
* Intrepid and HL have fairly different coverage models. HL has been stronger in asset-level transactions (e.g., Vital, Vickery, Rio), while Intrepid has leaned more toward corporate M&A (e.g., Archrock). On paper, those capabilities seem complementary.
* From a scale perspective, this probably creates the fifth-largest energy investment banking platform in Houston by headcount, behind Jefferies, Evercore, Goldman, Piper.
What makes me more skeptical:
* Intrepid has already gone through a number of senior departures, including its Head of Midstream.
* Intrepid has historically had a merchant banking angle. Does HL keep that business, or does it eventually get phased out?
* Looking at what happened with TPH, what’s stopping key rainmakers from leaving after integration and launching another platform?
* Intrepid also has a meaningful New York presence. Does HL consolidate people in Houston, or keep a split platform?
* Unlike deals such as Piper acquiring Simmons to build out Energy, or PWP acquiring Devon Park to establish PCA, HL already has an established Houston Energy team. So what’s the strategic rationale beyond adding scale, especially if there’s a risk of senior attrition? It’s also not like combinations such as Mizuho/Greenhill or MUFG/Morgan Stanley, where a balance sheet was a major part of the value proposition.
My guess is the immediate winner is HL’s dodgeball team next summer lol.
The immediate losers are probably the incoming interns. I’d be surprised if the combined platform still hands out return offers at the same rate when there are suddenly a lot more interns competing for limited full-time seats.
Curious to hear what everyone else thinks, am I missing something?
It seems they only took the advisory branch, not the investment management branch
What a joke. Two irrelevant banks merging to create... another irrelevant bank.
The only firms that really move the needle in Houston are GS, MS, and JEFF.
Replace MS with JPM and Citi, and add Evercore to the mix
I overall agree with your take. Working at a large O&G PE firm, I’ve honestly rarely seen MS on any of deals
I also think RBC Houston deserves to be in the conversation. I haven’t worked there, but they’re consistently on one side or the other of A&D transactions. When we’re selecting a sell-side advisor, it’s usually a discussion between RBC and JEFF/EVR
Out here lookin like kermit the frog in your Linkedin
Might want change your username if you are going to publicly trash banks. IB might not be the move if you couldn't think of that yourself
Congrats on GS!
Agree with above - HL not a major player in O&G market and Intrepid hasn’t been relevant in more years than I could count. Would genuinely put any Canadian + Mizuho + Truist + even Texas Capital over HL in the Houston space.
Push for one last big consolation wave?
TD with their balance sheet would have been a better home for Intrepid. They need better relationship managers and Skip would have been ideal
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