Ex-Barclays bankers seal dealer tie-up, forming new funding adviser

Former Barclays banker Rich Ricci is to move one of many UK’s largest funding advisers following the merger of Panmure Gordon and rival Liberum.

In yet one more shake-up of the stockbroking business because it struggles amid a dearth of takeover offers, inventory market listings and fundraisings, the 2 companies will mix to create Panmure Liberum.

The mixed group might be one of many largest impartial advisers to UK quoted firms with greater than 250 company purchasers and 300 workers, engaged on every part from acquisitions to fairness analysis.

It might be led by Ricci, who was put in as chief government of Panmure Gordon after it was purchased by his former Barclays boss Bob Diamond in 2018.

‘maddest f****r on the planet’: Rich Ricci has been chief government of Panmure Gordon since 2018

Over 19 years at Barclays, Ricci, 60, turned one in every of Diamond’s key lieutenants earlier than each left the financial institution within the wake of the Libor-rigging scandal.

Announcing the Liberum deal, Ricci, a horse racing fanatic who as soon as described himself because the ‘maddest f****r on the planet’, stated: ‘The transaction will create a brand new power in UK funding banking.’

Diamond, who purchased Panmure Gordon via his non-public fairness agency Atlas Merchant Capital, added: ‘This merger will elevate the extent and high quality of service to mid and small-cap companies and traders within the UK and past.’

Liberum founder Shane Le Prevost will turn into chairman of the mixed group, which plans to broaden its choices in mergers and acquisitions and personal capital raisings in addition to introduce a brand new debt advisory service.

City brokers have historically thrived on offering recommendation to UK Plc. But a 20-year low in London inventory market listings final yr, mixed with an ongoing squeeze in analysis budgets because the implementation of recent rules in 2018, has meant the sector has struggled.

As a end result, brokers have seen their revenues plunge because the starting of 2022, prompting companies to diversify or merge.

Panmure Gordon, which failed in an effort to purchase funding financial institution FinnCap final yr, made a £16million loss in 2022 regardless of Ricci overhauling the enterprise to deal with its core broking operate.

Meanwhile, Liberum was £9million within the crimson in 2022 – its first ever loss. Last yr funding financial institution Numis was snapped up by German lender Deutsche Bank, hoping to mix the dealer’s City boardroom relationships with the German lender’s monetary firepower. The mixed group is gunning to be the highest funding financial institution within the UK.

Meanwhile, the merger of brokers Cenkos and FinnCap in September created funding agency Cavendish, which has essentially the most company purchasers at 184. Many within the City consider Ricci could make the merger successful.

A one-time star performer at Barclays, US-born Ricci ran its funding financial institution the place he was a key lieutenant of Diamond, then the chief government, till each males stepped down in 2012.

Despite his penchant for loud, windowpane checked fits and trilby hats when on the races – he referred to as one in every of his racehorses Fatcatinthehat – Ricci is thought to be a shrewd businessman.

Neil Wilson, an analyst at buying and selling model Markets.com, stated: ‘There’s clearly some massive egos concerned within the deal in opposition to a troublesome backdrop however Ricci and Diamond can have a plan in place to make this work.’

The creation of Panmure Liberum will deliver one of many Square Mile’s oldest companies along with a relative upstart.

Panmure Gordon was based in 1876 whereas Liberum, which began in 2007, is owned by its workers. Panmure has traded fingers quite a few occasions in its existence, together with an acquisition by Lazard 20 years in the past.