Perella Weinberg Partners (PWP) and Tudor, Pickering, Holt & Co. (TPH) have entered into a definitive transaction agreement under which the two companies will combine. The combined firm will be called Perella Weinberg Partners; TPH’s energy practice will continue to operate as Tudor, Pickering, Holt & Co. The combined firm will provide financial advisory services, asset management solutions, and energy securities research, underwriting and trading services to a broad, global client base.
The combined firm will have over $12 billion in assets under management, and more than 650 employees across eight offices in New York, Houston, London, Denver, San Francisco, Dubai, Abu Dhabi, and Calgary.
Robert K. Steel, Chief Executive Officer of Perella Weinberg Partners, said, “The addition of TPH’s premier energy capabilities and market presence presents significant opportunities for immediate and long-term growth in service to our clients. We recognize the preeminent role that TPH has built as an energy banker in North America, the respect it has earned in the industry, and its leadership and strong voice in Houston. This combination will enable us together to build further on the great achievements of TPH. We believe TPH’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. The combination also adds TPH’s securities business, renowned for its deep domain research and thought-leadership, which will strengthen our ability to provide industry knowledge. We are excited to work together to better serve our clients.”
Robert B. Tudor, III, Chairman and CEO of Tudor, Pickering, Holt & Co, said, “Perella Weinberg Partners has a terrific reputation as a trusted advisor to executives at the world’s leading corporations and a culture of superior client service. We believe our clients and employees will benefit meaningfully from a TPH with broader global reach, expertise in new areas, and greater access to capital.”
Clients of both firms will benefit from a differentiated M&A franchise offering expanded expertise in its services and sector coverage. The combined advisory business will have deep expertise in key industry verticals that are among the most important and strategically active sectors of the global economy — energy, healthcare, consumer/retail, TMT, industrials and financial institutions. This transaction will deliver to TPH an expanded Middle East and European footprint and complementary offerings such as restructuring, while augmenting expertise in other areas, such as shareholder activism advice and capital markets. Perella Weinberg Partners’ clients will gain access to differentiated energy expertise across TPH’s advisory, research, capital markets and asset management platforms. The combination will result in a firm with expanded reach and enhanced distribution, enabling deeper penetration in energy-adjacent sectors, such as chemicals and diversified industrials.
This transaction will add nearly $2 billion of AUM to Perella Weinberg Partners’ asset management business and accelerate growth through the combination of TPH’s energy investment offerings and Perella Weinberg Partners’ asset management business. TPH’s energy securities business, including the Morning Note and other research publications, will continue unchanged.
Perella Weinberg Partners will be led by Chairman Joseph R. Perella, CEO Robert K. Steel, Head of Advisory Peter A. Weinberg, and Co-Head of Asset Management Tarek Abdel-Meguid. Aaron Hood, previously CFO for Perella Weinberg Partners, will join Meguid as a Co-Head of Perella Weinberg Partners’ Asset Management business. Alexandra Pruner, previously CFO of TPH, will assume the role of CFO of Perella Weinberg Partners.
R. Maynard Holt will assume the role of TPH CEO while Robert B. Tudor III, who has been Chairman and CEO, will continue in his role as Chairman. As Chairman, Tudor will join the Executive Committee at PWP. Dan Pickering will be President and Chief Investment Officer of the energy asset management business, and join the leadership of the combined Asset Management business.
Weil, Gotshal & Manges LLP and Vinson & Elkins LLP provided legal counsel to PWP and TPH, respectively.
Subject to customary conditions, the transaction is expected to close in the fourth quarter of 2016. Terms of the transaction were not disclosed. PWP’s founding investors will remain shareholders in the combined company, with some providing additional growth capital.