Solomon Partners x Natixis - A Force to be Reckoned With???? EB with the backing/lending capabilities of a BB
For those of y'all who aren't aware, PJ Solomon/Solomon Partners was bought out a few years back by Natixis — they are a big European BB under Groupe BPCE (7th largest bank in Europe) — which is the first time I'm aware of a EB being bought out by a BB. I don't think Natixis would've made such a big acquisition unless the tie up between the two would be a force to be reckoned with, the premier M&A advisory services of an EB with the gargantuan balance sheet of a European BB. I know some smaller American banks have recently tried to get into the IB/M&A sector by buying MM banks like Capital One with Kippsdesanto/TripleTree and Silicon Valley Bank with Leerink, but neither bank has a balance sheet with nearly 2 trillion in assets (Groupe BPCE) and TripleTree/Kipps/Leerink are MM/LMM banks. I think that this may create a paradigm shift and their future success may lead to some EBs being acquired by BBs — Centerview x Citi, PWP x PNC, Moelis x US Bank, Guggenheim x BBVA, etc. Would love to hear your take and which EB x BB tie ups you could see happening?
Possibly? We saw PNC buy Harris Williams back in 2005, but I don't think most people on this site would call them an EB. We also haven't the kind of EB this site talks about (like the ones you've mentioned) other than PJ Solomon and TripleTree. I definitely think both acquisitions raised heads but I'm curious if this will lead the kind of paradigm shift we're seeing here. I think we would need to see a company like Centerview or PJT Partners acquired by a BB to really confirm this.
Nonetheless, it's a good observation and something we should be aware of. Many are saying the same thing will happen in AM following the T. Rowe Price acquisition of Oak Hill. I know less about the sell side, but I'll definitely be keeping my eyes peeled.
Three things wrong with what your argument.
First, PJS is not an EB.
Second, Kipps, TT, and SVBL are much better banks than PJS. If I had to rank I’d say it’d go 1. SVBL, 2. Kipps/TT tied, 3. PJS.
Third, CapOne and SVB are much stronger banks than some big French bank that no one in the U.S. has ever heard of.
The USA is not the holy trinity of finance. Europe is just behind it and will likely outgrow the USA in the next two years in economic growth. The “nameless bank” is bigger than a lot of American banks and Europe overall has much bigger banks than the USA.
Just stumbled across this thread. Aged about as well a glass of milk left outside on a hot, humid day.
SVB Really? Come on
Whoever the dude is that's been desperately trying to self promote Solomon Partners on these forums the last few weeks reminds me of kids in bottom tier fraternities that used to post to GreekRank and be like "Bro srsly Beta is middle-tier now did you hear about their bubble-bath party? Fcking incredible they aren't even gay anymore"
Banks, especially boutiques, are people driven. Centerview or PJT (or basically any advisory only bank) are useless without a handful of top MDs. Most EB MDs are ex-BB, and it’s that way for a reason. They built a Rolodex at a big bank and then go to a boutique for better unit economics.
Let’s say some big bank buys PJT. As soon as the buyer sticks their fingers in PJTs bottom line, MDs will leave and go to an independent shop where they’ll get paid more. You could maybe make the case that there’s enough cross sell opportunities that everyone nets out ahead, but realistically would I think this is unlikely in practice.
Yes - everyone should look up CS First Boston aquisition of DLJ. Absolute fucking shit show. They basically paid up guarantees to lock in DLJ employees acquired, who then all promptly bounced as soon as their contract was up with huge paydays.
Meanwhile, if you're an MD/partner planning on leaving, are you really going to use your best ideas or political capital/goodwill with clients during the 2 years you are locked down? Fuck no. You save that shit.
Far cheaper for big banks to just poach. Boutiques are just not gonna get acquired.
I agree with everything except your best ideas point. If there is a good idea out there and you don't bring it up someone else will. There is a lot of competition out there.
oooh shiver me timbers
Wait, is this thread regarding Solomon Partners (previously known as PJ Solomon), the famous elite boutique that few are aware as being up to par with legendary elite firms like FT Partners and famous Canadian bulge bracket RBC? THAT Solomon Partners?
Sounds like a cheap knock off of Solomon Brothers
Natixis has never been a BB
From a size point? It has been. From purely M&A, I agree.
if you work at a certain British bank, I promise you will know who they are from their incessant emails. If you know you know
tf is a natixis
Natixis is the CIB arm of Groupe BPCE. Low visibility in M&A as they operate under a boutique network model where they essentially buy advisory boutiques to expand presence. Similar to what they are doing with PJS.
Decent presence in France and I’m told on good authority pay will surprise you (slight discount to BB) but yea they won’t be as recognised as any of the BB anytime soon.
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