ARLINGTON, Va., July 31 /PRNewswire-FirstCall/ -- FBR Capital Markets
Corporation (Nasdaq: FBCM) (FBR Capital Markets), a leading investment bank
serving the middle market, announced today that it has entered into a
definitive agreement to acquire Watch Hill Partners LLC, a boutique corporate
finance advisory practice based in New York. The Watch Hill Partners team
will become part of the Corporate Advisory practice within FBR Capital
Markets' newly reorganized Investment Banking department.
Founded in 2003, Watch Hill Partners has provided mergers and acquisitions
and corporate finance advisory services to a diverse range of clients
including closely held and public companies, financial sponsors and a variety
of other sophisticated investor groups. The senior partners of Watch Hill
Partners have nearly 200 years of combined investment banking experience and
have, in aggregate, advised on transactions valued at more than $100 billion.
"FBR Capital Markets has evolved significantly over the last year as we
have made investments to strengthen our franchise and become a leading
full-service investment bank serving the middle market," said Richard J.
Hendrix, President and Chief Executive Officer of FBR Capital Markets. "With
the Watch Hill team and our newly added resources in Research, Institutional
Brokerage and Convertible Securities along with new capabilities in Debt
Origination, Credit Sales & Trading and Restructuring Finance & Advisory, we
are assembling one of the most talented teams and compelling platforms in the
industry today. We believe this will benefit our clients as they look to
capitalize on the opportunities that the business environment will present
over the next several years."
David Knowlton, Managing Partner of Watch Hill Partners, said, "The
investment banking landscape is in the midst of a dramatic evolution. And the
premium today, as much as ever, is on long-standing relationships, experience
through many business cycles and relentless client service. Confidentiality,
creativity and being a trusted advisor is of paramount importance, and the
integration with FBR Capital Markets will provide clients access to an
expanded suite of services. The FBR Capital Markets franchise will become an
even more powerful force in focusing on solutions for clients and achieving a
broad range of new mandates."
Widely regarded as a pioneer in middle market investment banking, Sandy
Robertson, Founding Partner of Francisco Partners, Founder and former Chairman
of Robertson Stephens & Company, commented, "Combining the capabilities of FBR
Capital Markets and Watch Hill Partners will create a client-focused platform
that I believe will be uniquely well-suited for this new era in investment
banking."
FBR Capital Markets also announced a reorganization of its Investment
Banking department, which will be comprised of three primary practice areas.
To complement its existing industry-focused team, the firm is integrating its
Capital Markets group into Investment Banking and creating a third practice
area, Corporate Advisory Services. The reorganization of Investment Banking
into these three areas will create a seamless origination model for FBR
Capital Markets' full suite of corporate finance capabilities, including the
firm's new Convertible Securities, Restructuring Finance & Advisory Services
and Credit Sales & Trading products.
In addition to continuing in his position of Executive Vice President and
Head of Investment Banking, James C. Neuhauser, CFA, will now also serve as
Chairman of the newly formed Investment Banking Management Committee. James
R. Kleeblatt has been promoted to Vice Chairman of FBR Capital Markets & Co.
and will continue to lead the Equity and Debt Capital Markets functions.
David Knowlton will become Vice Chairman of Investment Banking and Head of the
Corporate Advisory practice. Messrs. Kleeblatt and Knowlton will be joined by
Kenneth P. Slosser, Senior Managing Director, Group Head of Financial
Institutions and Joseph R. Nardini, Senior Managing Director, Group Head of
Diversified Industrials as members of the Investment Banking Management
Committee.
"The acquisition of Watch Hill Partners and the realignment of our banking
practice are significant strategic steps for FBR," said Mr. Neuhauser. "With
the addition of these experienced and highly-regarded senior M&A and corporate
finance professionals, this acquisition deepens our leadership team, broadens
our expertise and enhances our presence in New York."
Terms of the Watch Hill transaction, which is expected to close in the
third quarter of 2009, were not disclosed. Watch Hill Partners was
represented by Keefe, Bruyette & Woods and Herrick, Feinstein LLP.
About FBR Capital Markets Corporation
FBR Capital Markets Corporation (Nasdaq: FBCM) provides investment
banking, merger and acquisition advisory, institutional brokerage and research
services through its subsidiary FBR Capital Markets & Co. FBR Capital Markets
focuses capital and financial expertise on seven industry sectors: consumer;
diversified industrials; energy & natural resources; financial institutions;
insurance; real estate; and technology, media & telecom. Asset management
services are provided by FBR Investment Management, Inc., and mutual funds are
provided by FBR Fund Advisers, Inc.; both companies are subsidiaries of FBR
Capital Markets Corporation. FBR Capital Markets is headquartered in the
Washington, D.C. metropolitan area with offices throughout the United States
and in London. For more information, please visit www.fbrcapitalmarkets.com.
About Watch Hill Partners LLC
Watch Hill Partners is a boutique investment bank providing senior-level
M&A and corporate finance advisory services to corporations as well as
financial sponsors and their portfolio companies. The hallmarks of our
service -- confidentiality, creativity, experience, objectivity and
unrelenting focus -- help our clients realize their respective strategic
visions.
CONTACT:
Media
Troy D. Gravitt
+1-703-469-1004
tgravitt@fbr.com
Investors
Bradley J. Wright
+1-703-469-1080
fbcmir@fbr.com
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