Pierpont Securities Holdings, which is backed by Stone Point Capital and General Atlantic, has closed its buy of Cortview Capital Holdings after receiving FINRA approval. The two companies will continue to operate as separate broker-dealers until first quarter when the two firms will combine into a single entity called Pierpont Securities. Cortview, a Richmond, Va.-based broker-dealer, was launched in 2010 with a $125 million investment from Warburg Pincus.
Pierpont Securities Holdings LLC (“Pierpont”) announced today that it has closed on the purchase of Cortview Capital Holdings Inc. (“Cortview”), having received regulatory approval from FINRA.
Pierpont and Cortview will continue to operate as separate broker-dealers with common ownership and management into Q1 of 2013 at which time the two firms will combine into a single entity that will be named Pierpont Securities. Mark B. Werner, current CEO of Pierpont, will be CEO of the new firm. Pierpont will have more than 150 employees in 11 regional offices across the U.S.
The combination of the two firms creates a premier, midsize broker-dealer that offers a full suite of fixed income products, as well as a diverse range of sophisticated finance, capital markets, and advisory services.
A reallocation of capital into Cortview’s existing Credit, Agency, and Mortgage-backed businesses will allow them to expand inventory, products, and distribution. The new company will remain committed to providing underwriting, structuring, and syndication to middle-market clients in the Capital Markets space.
“Pierpont Securities is now well positioned for growth. Our strong capital position, product breadth, and scalable platform give us a competitive advantage in meeting the needs of our diverse client base,” said Werner. “We plan to hire an additional 20-25 salespeople by the end of Q1 2013, which will bolster an already robust team of specialist and generalist sales professionals.”
Since inception, Pierpont has raised $225 million from its founders and strategic investors – Stone Point Capital LLC and General Atlantic LLC, both of which will remain investors in Pierpont following closing of the transaction.
Pierpont Securities is a self-clearing, SEC-registered broker-dealer established in 2009. Pierpont acts as principal in the U.S. Treasury, federal agency, mortgage-backed securities, and financing markets, and serves institutional clients globally. For more information, see www.pierpontsecurities.com. Pierpont is a member of FINRA and SIPC.
Cortview was launched in September 2010. Cortview offers a diverse range of fixed income sales, trading, and origination services, as well as advisory and capital markets services to its middle-markets client base and through its regionally based generalist salesforce. The firm has offices in Boca Raton, Fla.; Charlotte, N.C.; Chicago, Ill.; San Francisco, Calif.; Los Angeles, Calif.; Memphis, Tenn.; New York, N.Y.; Richmond, Va., and Salt Lake City, Utah. For more information, see www.cortcap.com.
About Stone Point Capital
Stone Point Capital LLC is a global private equity firm based in Greenwich, Connecticut, that has a 25-year record of making successful investments in the financial services industry. Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $9 billion in committed capital to make investments in lending, banking, insurance, asset management, broker-dealer and other financial services companies. For further information about Stone Point Capital, see www.stonepoint.com.
About General Atlantic
General Atlantic (GA) 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 $17 billion in capital and has more than 75 investment professionals based in Greenwich, New York, Palo Alto, London, Munich, Hong Kong, Beijing, Singapore, Mumbai and São Paulo. For further information and a listing of GA’s public and private portfolio companies see www.generalatlantic.com.