Amherst Securities and Pierpont Securities merge

Austin, TX and Stamford, CT July 1, 2014 – Amherst Securities Group, LP (“Amherst Securities”), a fixed- income broker-dealer focused on mortgage-related, asset-backed and structured finance investments, and Pierpont Securities LLC (“Pierpont”), a fixed-income broker-dealer focused on rates and credit products, today announced that they have entered into a definitive agreement to merge in a transaction that will create a market-leading fixed-income broker-dealer. The combined company will be known as Amherst Pierpont Securities LLC (“Amherst Pierpont Securities”). Financial terms of the transaction were not disclosed.

Amherst Pierpont Securities will provide institutional and middle-market clients with access to a broad range of fixed-income products including residential and commercial mortgage-backed securities, asset- backed and other highly-structured finance transactions, U.S. Treasuries, federal agency debentures, investment grade corporate securities and repo finance. In addition, the firm will offer industry-leading analytics, an enhanced trading platform and a broader distribution network. Amherst Pierpont Securities will have the scale and infrastructure to support a diverse set of trading and banking businesses. At the same time, it will maintain the entrepreneurial culture that exists at both firms. The combined company is poised for future growth and will continue to seek opportunities to further expand its business based upon a strong and scalable operational infrastructure.

Amherst Pierpont Securities will be led by Mark B. Werner, the current Chief Executive Officer of Pierpont, and Joseph N. Walsh III, the current President of Amherst Holdings LLC (“Amherst Holdings”). Mark and Joe will retain their respective titles at the new company. Thomas C. Connor, the current President of Pierpont, will serve as Chief Operating Officer. Amherst Pierpont Securities will have nearly 200 employees across 19 offices and will be headquartered in Stamford, CT with sales and trading hubs in both Stamford and New York City.

“Combining Amherst’s unparalleled leadership in mortgage-related securities and Pierpont’s liquid product-related offerings will create a scalable platform that will have an unmatched ability to capture future growth opportunities,” said Mr. Werner. “We have long respected Amherst’s impressive capabilities in the mortgage space and look forward to leveraging Pierpont’s strengths to grow the combined firm.”

“Together, Amherst and Pierpont are poised to compete with broker-dealers of all sizes, and through the complementary strengths of both firms, are well equipped to meet the diverse and evolving needs of fixed-income clients in today’s challenging market,” said Mr. Walsh. “This combination demonstrates a strong commitment to growth at a time when many institutions are reducing their investment in their fixed-income businesses.”

Amherst Securities is currently a wholly owned subsidiary of Amherst Holdings, a leading financial services provider to institutional investors in the mortgage and structured finance sectors; upon completion of the transaction, Amherst Holdings will continue to have operating subsidiaries in the mortgage and residential real estate asset management industries. Amherst Holdings’ proprietaryanalytics currently utilized by Amherst Securities will be licensed to the combined company following the close of the merger. The transaction, which is subject to FINRA and other regulatory approvals and customary closing conditions, is expected to close in the second half of 2014.

The combined company’s capital position is driven by a strong and consistent ownership group. Amherst Holdings and investment funds managed by Stone Point Capital LLC (“Stone Point”) and General Atlantic will be major shareholders in the combined company. Pierpont is currently owned by Stone Point and General Atlantic. In addition, Stone Point is a minority investor in Amherst Holdings.

“Amherst Securities and Pierpont have both built strong businesses in their respective sectors, and we believe that combining the two broker-dealers will create a leader in the fixed-income and advisory markets,” said Charles A. Davis, Chief Executive Officer of Stone Point Capital. “We look forward to continuing to work with our partners at Pierpont, Amherst Holdings and General Atlantic to create an outstanding fixed-income franchise.”

Shearman & Sterling LLP served as legal advisor to Pierpont, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Amherst Holdings.

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