Financial Advisors on IPOs

It's been a while since IPOs were booming, and the times are different, but how common is it (or how common do you think it will be) for companies to advise on IPOs if they aren't underwriting the deal? I'm curious about the "elite boutiques" that might be participating in IPOs as they become more frequent but probably won't serve as underwriters. Is it extremely rare?

 
Best Response

Its quite common in the UK actually - they are called "Equity Advisors". The last one I remember was a firm called Ondra Partners (a British boutique) on the IPO of Gartmore (£450m). UBS, JPM and someone else was on the IPO, but Ondra sat between the bookrunner syndicate and Hellman & Friedman, basically advising them and making sure the banks were on the ball. They had NO underwriting responsibility.

Rothschild and Lexicon often do this role as well. Basically any top grade boutique that has a seriously big hitter at the top with a close relationship with the client.

 

Few and far between but there are active!

Underwriter Rankings: 10/31/2009 - 10/31/2010

Rank Underwriter Number of IPOs 1 Morgan Stanley 21 2 Goldman, Sachs & Co. 18 3 Credit Suisse 16 4 J.P. Morgan 15 5 BofA Merrill Lynch 14 6 Citi 7 7 Piper Jaffray 7 8 Deutsche Bank Securities 6 9 Barclays Capital 5 10 Rodman & Renshaw 4 11 Baird 2 12 Goldman Sachs (Asia) L.L.C. 2 13 Jefferies & Co. 2 14 Leerink Swann 2 15 Raymond James 2 16 Roth Capital 2 17 Thomas Weisel Partners 2 18 UBS Investment Bank 2 19 Broadband Capital 1 20 Cowen & Company 1 21 Keefe Bruyette Woods 1 22 Stifel Nicolaus Weisel 1 23 Suntrust Robinson Humphrey 1 24 Wunderlich Securities 1

Source: Renaissance Capital IPO Research

 

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