Pierpont Securities LLC has launched as a government securities broker-dealer, with $200 million in capital commitments from General Atlantic and Stone Point Capital. Company management has committed an additional $20 million.
Pierpont Securities LLC today announced its official launch with $220MM in capital and investor partnerships with two premier equity investors, Stone Point Capital LLC and General Atlantic LLC (GA). Stone Point Capital, through its fund Trident IV, L.P., and GA have each committed $100 million in capital and Pierpont principals have invested an additional $20 million, establishing Pierpont as a strongly capitalized government securities broker-dealer.
Pierpont was founded in 2009 by three principals with 25 years of experience working together in two of the largest financial services firms on Wall Street. They have continually operated in the fixed income markets and have particular expertise in Pierpont’s core products — US Treasuries, federal agencies and associated repurchase products.
Mark B. Werner, Pierpont’s CEO and a member of the U.S. Treasury Department’s Borrowing Advisory Committee, has been active in industry forums and policy-making groups for much of his career. Recognizing that recent industry consolidation coupled with increasing government debt issuance had altered the competitive landscape for government debt underwriting, Mr. Werner partnered with longtime colleagues Thomas C. Connor and Joseph P. Blauvelt to found Pierpont.
“Stone Point Capital and GA have exceptional records investing in financial services companies and are valuable strategic partners for Pierpont,” said Mark Werner. “We look forward to benefiting from their expertise and insight through their board participation and our ongoing partnership.”
We are delighted to be partnering with the Pierpont management team and General Atlantic to create a new broker-dealer focused on government securities,” said Charles A. Davis, CEO of Stone Point Capital. “Mark, Tom and Joe bring tremendous talent and experience to the company. We believe there is a significant opportunity at this time for a high-quality, well capitalized, start-up broker-dealer to gain meaningful market share and Pierpont is well-positioned to do so.”
Alex Chulack, a principal with General Atlantic, said, “The outlook for government securities market activity creates a unique growth opportunity in the rates markets over the next three to five years. The Pierpont team is ideally suited to address this market opportunity having successfully built two world class dealerships, and developed extensive knowledge of the rates markets and long-standing client, industry and regulatory relationships. We are very enthusiastic about this partnership.”
Pierpont’s seasoned professional team has been recruited from many leading global financial institutions. The firm will quickly establish a visible presence in the U.S. Treasury and federal agency markets.
Pierpont’s board will be comprised of Mr. Werner, Mr. Davis, James D. Carey, Stone Point Capital Senior Principal, David C. Hodgson, General Atlantic Managing Director, and Mr. Chulack.
Credit Suisse acted as financial advisor for the transaction.
Pierpont Securities is a self-clearing, registered broker-dealer established in 2009. Pierpont acts as principal in the US Treasury, federal agency and financing markets, and serves institutional clients globally. For more information, see www.pierpontsecurities.com. Pierpont is a member of FINRA and SIPC.
About Stone Point Capital
Stone Point Capital is a global private equity firm based in Greenwich, Connecticut. Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $10 billion in committed capital to make investments in the insurance, employee benefits and financial services industries. Stone Point Capital has a 20 year track record of successful investments in the financial services industry, including in the broker-dealer space with its recent investment in Amherst Securities. For further information about Stone Point Capital see www.stonepoint.com
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. Established in 1980, GA manages approximately $15 billion in capital and has more than 75 investment professionals based in Greenwich, New York, Palo Alto, London, Dusseldorf, Hong Kong, Beijing, Mumbai and São Paulo. For further information and a listing of GA’s public and private portfolio companies see www.generalatlantic.com.