Armory Merchant Holdings, a new merchant banking firm headquartered in New York City, has launched its operations. The firm was founded by Steve Smith and David Storper of Seaport Global. Both Smith and Storper will serve as co-chief investment officers of AMH.
NEW YORK–(BUSINESS WIRE)–Armory Merchant Holdings LLC (“AMH”) has begun operations as a new, independent merchant banking firm. AMH was founded by senior management of Seaport Global, Steve Smith and David Storper, each of who has more than twenty-five years’ experience in the distressed and leveraged finance investment areas. Smith and Storper will be co-Chief Investment Officers and lead the investment team.
AMH has deep relationships with institutional investors who have significant capital available for investment and intends to implement an expansive co-investment program on deep value, cash flow and other alternative investments. The firm plans to source, structure and execute with co-investment partners on opportunities that will create and expand long-term platforms in infrastructure and industrials, energy and utilities, financial services and special situations. AMH’s current portfolio, representing investments by its principals, will include investments in shipping and logistics, specialty finance and energy.
Steve Smith commented, “AMH intends to provide opportunities for co-investment both from the AMH team’s relationships and Seaport Global’s 250 brokerage and investment banking professionals who provide coverage to investors throughout the world. We are excited to act as a conduit for co-investments that require patient capital to create long-term value. Likewise, AMH opportunities will allow their co-investment partners to avoid the management and performance fees associated with traditional private equity and hedge fund structures. ”
David Storper added, “The nearly $1 trillion of dry powder in the private equity space is unprecedented, which along with easily accessible leverage, has pushed asset purchase prices and risks to treacherous levels. AMH will focus on assets with stable cash flows with co-investment partners who can help us create investment multiple expansion through consolidation and operating expertise. AMH believes this is a superior strategy in this over-capitalized market environment.”
“We are looking for true investment partners, rather than just sources of capital, who will contribute to an investment’s long-term operating goals by contributing to corporate governance and management. With our investment partners, we will accomplish this in a transparent structure that will align us with our partners’ goals.”
AMH is headquartered in New York City with offices in San Francisco and Palm Beach.