Investment banks Panmure Gordon and Liberum have announced their formal merger, creating the UK’s largest investment bank. The new bank will be known as Panmure Liberum.
The merger is intended to help the new firm through a slump in investment driven by global tensions and uncertainty over interest rates. Two weeks ago LSEG Deals Intelligence reported M&A deals with UK involvement dropped 33% to $265bn (£210bn) during 2023.
The firms estimate their combined record shows them the top firm for UK IPOs under £1bn over the past five years, and an aggregate of £9.9bn equity raised over the past five years. The combined firm will have more than 250 quoted corporate clients, with an average market capitalisation in excess of £250m.
Panmure Gordon, founded by former Barclay’s boss Bob Diamond, has offices in London, New York and Leeds. Liberum has offices in London and New York. Diamond still has an interest in Panmure Gordon through his investment firm Atlas Merchant Capital, which provided funding for the merger.
Diamond said in a statement, “This merger will lift the level and quality of service to mid and small-cap businesses and investors in the UK and beyond. These businesses are the lifeblood of the UK economy and require flexible and tailored solutions to enhance their productivity. This is a very powerful combination and I am excited by the prospect of Panmure Liberum raising the bar in the UK middle market.”
Panmure chief executive Rich Ricci and Liberum founder Shane Le Prevost will head the new firm, with le Prevost as non-executive chair and Ricci as chief executive.
Ricci said: “In Panmure Liberum, we are combining two highly complementary and culturally aligned businesses and creating a new force in UK investment banking with an exciting long-term future.”
Le Prevost added, “We have found a long-term partner with shared values and strategic ambitions to enable us to capitalise on the significant opportunities ahead and take both firms to the next level. Additionally, combining the financial strength of Atlas Merchant Capital with our culture of employee ownership is a highly compelling proposition.
In a statement posted on Liberum’s website, the firms said the enlarged group will benefit from cost and revenue synergies and will have the balance sheet strength to invest in growth and diversification opportunities.
