Panmure Gordon and Liberum to join forces

(Sharecast News) - City brokers Panmure Gordon and Liberum are to merge, it was announced on Tuesday. The tie-up will create one of the UK's largest advisors to quoted companies, with more than 250 retained corporate clients and around 300 employees.

Liberum founder Shane Le Prevost will become chair, while Panmure head Rich Ricci becomes chief executive. The Barclays veteran joined Panmure in 2020.

Sixteen-year old Liberum is owned by its employees, while Panmure - which was founded in 1876 by Harry Panmure Gordon - is owned by Atlas Merchant Capital, the investment firm co-founded by former Barclays boss Bob Diamond.

Diamond said: "This merger will lift the level and quality of service to mid and small-cap businesses and investors in the UK and beyond.

"These businesses are the lifeblood of the UK economy."

Ricci, previously head of Barclays' investment bank, said: "Over the last three years we have doubled our corporate client base, made significant investment in talent and materially increased our share of the UK market across our trading and execution capabilities.

"In Panmure Liberum, we are combining two highly complementary and culturally aligned businesses."

Le Prevost added: "We have found a long-term partner with shared values and strategic ambitions to enable us to capitalise on the significant opportunities ahead, and take both firms to the next level."

The deal comes at a tough time for the advisory market, which has been knocked by a slump in activity in UK capital markets as well as falling research fees.

Panmure reported a £16m loss in 2022, while Liberum posted a £9m loss, its first ever.

The two firms said that with the support of Atlas, the combined business would have "substantial" financial backing and the liquidity to support its long-term ambitions, as well as being a "resilient and scalable platform that is structured to grow and to be consistently profitable through the cycle".

It would also benefit from cost and revenue synergies, they noted.