Perella Adds Tudor Pickering, Creating $12 Billion Managerby and
Combined firm will have more than 650 employees worldwide
Tudor seen poised to benefit from rebound in energy markets
Perella Weinberg Partners agreed to combine with Tudor Pickering Holt & Co. to form an investment bank with more than $12 billion in assets under management.
The combined firm, with more than 650 employees, retains the Perella Weinberg name and will be led by its chief executive officer, Robert Steel, 65, and Chairman Joseph Perella, 75, the companies said Monday in a statement that didn’t disclose terms. Alexandra Pruner, 54, previously chief financial officer of Tudor Pickering, will have that role at the new firm. Aaron Hood, who was CFO under Steel, will become co-head of the combined company’s asset-management business along with Tarek Abdel-Meguid, 60.
The addition of Houston-based Tudor brings energy expertise to Perella Weinberg, which has the larger asset-management operation of the two firms and advises on more mergers and acquisitions, including AT&T Inc.’s agreement to buy Time Warner Inc. in the biggest deal this year. The combination, expected to be completed in the fourth quarter, will reunite alumni of Goldman Sachs Group Inc.: Bobby Tudor, Maynard Holt, and Peter Weinberg.
Tudor Pickering’s “strong suite of asset-management strategies and solutions are poised to benefit from recovery in the energy market and well-suited to drive further growth and value for investors,” Steel said in the statement. “The combination also adds Tudor Pickering Holt’s securities business, renowned for its deep domain research.”
Perella Weinberg is the No. 16 adviser on mergers and acquisitions this year, while Tudor Pickering isn’t the top 100, according to data compiled by Bloomberg. New York-based Perella Weinberg this year also advised Deutsche Boerse AG on its agreement to buy London Stock Exchange Group Plc for more than $13 billion. Tudor Pickering has worked on energy deals including the Kinder Morgan Inc.’s takeover in 2014 of El Paso Pipeline Partners.
The deal helps closely held Perella Weinberg add assets after partners leading its asset-based value strategy team left last year to form their own firm. The firm has $10 billion at its asset-management operation.
Weinberg has also recruited investment bankers including Goldman Sach’s Bruce Mendelsohn to rebuild a restructuring team after the exodus of dealmakers. The addition of Lazard Ltd.’s Woody Young helped the Perella Weinberg land its role on the AT&T deal.
Tudor Pickering has also lost some bankers before the announcement of the Perella Weinberg agreement. David Bradshaw this year moved to rival Moelis & Co. for oil and gas deals, while Ed J. Tirello Jr. joined Williams Capital Group last month.
Tudor Pickering Holt’s energy practice, which was pressured by low fuel prices, will continue to operate under that name. Holt will be CEO of that operation. Tudor, 56, who was CEO and chairman, retains the latter role and will join the executive committee of the combined operation.
Perella Weinberg Partners’ founding investors will remain shareholders in the business, with some providing additional capital, according to the statement. The combined firm will have locations in New York, Houston, London, Denver, San Francisco, Dubai, Abu Dhabi, and Calgary.
“Our mission from day one was to drive toward being a preeminent global adviser and clear thought leader in energy,” Holt, also a former banker at Goldman Sachs, said in the statement. “We are particularly excited about PWP’s longstanding Middle Eastern presence and relationships, its restructuring business as well as the firm’s global footprint.”
The firm was advised by Weil Gotshal & Manges LLP, while Tudor Pickering used Vinson & Elkins LLP.