Petsky Prunier Advises Marketing Sector

Launched earlier this year, Petsky Prunier LLC of New York hopes to become the investment banker for the direct marketing industry.

The firm’s two founders each focused on the industry in previous stints with investment firms – Michael Petsky at Gruppo Levy and John Prunier at Veronis, Suhler & Associates.

Clients of the new investment banking venture will primarily emanate from direct marketing, with a particular focus on marketing opportunities created through increased e-commerce activities.

“The areas we see as particularly exciting are infrastructure companies that provide the software and systems the retailers will use,” Petsky said.

When the firm began operations in April, Petsky said the two expected the bulk of deals to come on sell-side assignments for traditional companies looking to merge with a financial or strategic buyer. However, fully half of the deals that have been sourced to the firm have been later-stage private companies seeking second or third round financings of between $5 million and $10 million.

“We will avoid early-stage companies for now,” Petsky said. “We will focus on the laterstage, where there are opportunities aplenty.”

Petsky Prunier will take its fees from clients in the form of cash and warrants. The firm will take advantage of co-investment opportunities, but Petsky said the firm does not want to compete with its investors, so a fund is unlikely. He added that the firm will likely have three deals in market by the end of the month.

In addition, the firm intends to hire investment professionals from managing directors to associates over the next few months.