(Bloomberg) – Peter Weinberg is about to become the CEO of the company that he helped found, Perella Weinberg Partners putting his leadership – and potentially the stakes of his partners – in planning for the future. 39; an initial public offering for savings, according to people's knowledge of the subject.
Bob Steel, the former head of the Treasury Department who joined the investment bank as CEO in 2014, will become chairman of the board, said the population, who asked not to be identified because the decision has not been announced. President Joe Perella, who founded the company in 2006 with Weinberg, will become president emeritus, officials said.
Perella Weinberg has filed a confidential IPO application and investment bank executives are discussing ways to redistribute equity between its partners before an offer, said the population. The firm has had years of hiring and it is a question of how much would belong to new partners and how much would belong to long-term partners, the officials said.
Kara Findlay, a spokesperson for Perella Weinberg, declined to comment.
All companies currently seeking to go public are facing a turbulent stock market, declining valuations and regulators facing the government's closure. Perella Weinberg also faces a complicated partnership with her own rapid growth.
Weinberg, 61, leads a working group of executives working on how to divide the company's equity into a broader strategic review, including a possible separation of the asset management business line of the company, said the officials. The bank envisioned the expansion of Goldman Sachs Group Inc., which was run for much of the Weinberg family, from a partnership to a public company.
Weinberg worked at Morgan Stanley and led the international activities of Goldman Sachs before joining his rival Perella to create an independent investment bank. He led the company's consulting activities.
Perella Weinberg hired Goldman Sachs and JPMorgan Chase & Co. to participate in the IPO, people familiar with the deal told Bloomberg. At the time, they were working at a valuation of $ 1.5 billion. IPO projects could still be delayed or canceled, people said.
Perella oversaw investment banking at Morgan Stanley before committing alone, bringing with him rainmakers such as Terry Meguid and William Kourakos. Now 77 years old, Perella has largely moved away from the transaction process and therefore no longer generates the income that he has already generated.
Over the past year, the firm has recruited senior bankers, including Marcus Schenck, former transaction manager at Deutsche Bank AG, and Alex Wilmot-Sitwell, former president of Bank of America Corp. in Europe, the Middle East and Africa. The company catapulted its expansion with the acquisition in 2016 of Tudor Pickering Holt & Co., an investment banking firm in the oil and gas sector, created by a number of former Goldman Sachs' colleague from Weinberg.
Recent additions create the difficult task of assigning value to partners who have not yet entered into a contract. Nevertheless, the new members have already secured some of the most important mandates of the company. Woody Young, who left Lazard Ltd. in 2016, piloted the purchase of Time Warner Inc. by AT & T Inc. for more than $ 100 billion.
Ratings of publicly traded rivals such as Evercore Inc. and Lazard have fallen more than 20% in the last three months of 2018. Dealers are worried that mergers will continue to grow, rising interest rates and trade tensions pushing borders across borders. more difficult transactions. Perella Weinberg also faces questions about her Tudor Pickering unit if energy trading activity suffers from falling oil prices.
–With the help of Kiel Porter.
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