Leading M&A, Capital Markets, and SPAC Advisory Firm
Promotes Five Senior Talents
MENLO
PARK, Calif. and NEW
YORK, Jan. 19, 2023 /PRNewswire/ -- Cohen &
Company Capital Markets ("CCM"), a leading full-service boutique
investment bank with a focus on mergers and acquisitions (M&A),
capital markets, and SPAC advisory, closed out a strong 2022. CCM
announced or closed transactions that represent over $18 billion in M&A volume and nearly
$5 billion in capital raised,
including nine successfully closed or announced private investments
in private equity (PIPEs), raising $1.6
billion since the firm was founded in 2021.
Following a banner year of growth for CCM, the firm is pleased
to announce the following promotions to its senior banking
team:
- Ken Taylor has been named vice
chairman of cyber security investment banking. Ken has over 25
years of cyber industry experience as a senior executive and as a
venture capitalist, including more than a decade of service in the
military signal intelligence community.
- Felix Burmeister has been named
managing director of technology investment banking. Felix has more
than 15 years of investment banking advisory experience, serving
emerging, high-growth technology companies across M&A, private
placements, IPOs, SPACs, and other capital markets
transactions.
- Christian Lopez has been named
director of fintech investment banking and head of blockchain and
digital assets. Christian has more than 10 years of investment
banking and corporate finance experience, serving fintech and
financial services companies across M&A, private placements,
IPOs, SPACs, and other capital markets transactions.
- Maggie Chou and Gen Takahashi
have each been named vice presidents of investment banking.
"We are excited by the traction that CCM has achieved since
launching in 2021," said Dan Nash,
co-founder and head of investment banking at CCM. "This year alone
we nearly doubled our investment banking team and made several key
appointments to expand our product and industry coverage teams. The
strength of our team has been critical to our success in advising
clients in such a volatile capital markets environment."
Driven by its commitment to execution excellence and first-class
service, CCM was founded to address the coverage gaps and
structural conflicts at leading investment banks. Outside of the
firm's expertise in M&A, capital markets, and SPAC advisory,
CCM has teams with deep expertise in blockchain, digital assets,
auto-tech, clean-tech, cyber security, and other emerging,
high-growth industry verticals.
"We are focused on building a differentiated investment banking
platform that leverages innovative thought leadership with unique
product and industry expertise," continued Nash. "CCM aims to be
the first call advisor for clients, specifically in complex
transactions and challenging market environments. We view having
differentiated coverage and product bankers that can support our
clients as an absolute imperative."
Capital Markets 2022 Year in Review
Last year brought a dramatic shift to the capital formation
markets: an ongoing inflation crisis that led to an unprecedented
move in interest rates, combined with geopolitical turmoil, yielded
a full year of elevated volatility and multiple compression in the
equity markets. That backdrop led to a 95% decline in IPO volumes
and 65% decline in secondary offerings, and the lightest new
issuance market for equity in approximately 30
years1.
Credit issuance also struggled, with the high yield markets
experiencing a 75% decline in volumes and the worst price
performance in 40 years. New entrants to the equity market utilized
SPACs in 2022, with over 100 business combinations closing,
compared to fewer than 40 IPOs. However, SPAC combinations have
been much smaller, and raising equity capital via PIPEs or
non-redemptions has been significantly more challenging than in
years past.
"Looking forward, we expect to see business combinations
continue to outpace traditional IPOs in the first half of this
year, while markets contend with the uncertain interest rate
environment and risks of a recession," said Jerry Serowik, CCM's co-founder and head of
Capital Markets at CCM. "SPACs offer a unique flexibility and allow
for creative capital solutions, which are critical benefits to most
issuers in the current backdrop."
Leading the 2022 DeSPAC League Tables
In only its second year, CCM was the leading advisor in the
DeSPAC market across numerous roles and was the most active advisor
in announced DeSPAC transactions2.
2022 Advisory Roles, per SPAC Insider
Data
|
Rank
|
Advisor
Name
|
Value
($M)
|
Market
Share
|
Total Deal
Count
|
1
|
CCM
|
$7,409
|
4.3 %
|
13
|
2
|
Cantor
Fitzgerald
|
$10,189
|
4.0 %
|
12
|
3
|
ARC Group
|
$6,804
|
4.0 %
|
12
|
4
|
Chardan
|
$4,656
|
4.7 %
|
12
|
5
|
EF Hutton
|
$4,174
|
4.3 %
|
12
|
6
|
Credit
Suisse
|
$13,600
|
3.7 %
|
11
|
7
|
Barclays
|
$12,289
|
3.7 %
|
11
|
8
|
Stifel
|
$6,624
|
2.7 %
|
8
|
9
|
Oppenheimer
|
$4,651
|
2.7 %
|
8
|
10
|
Jefferies
|
$4,560
|
2.7 %
|
8
|
11
|
Citigroup
|
$11,090
|
2.3 %
|
7
|
12
|
B Riley
Securities
|
$3,122
|
2.3 %
|
7
|
13
|
Cowen and
Company
|
$4,672
|
2.0 %
|
6
|
14
|
Maxim Group
|
$905
|
2.3 %
|
6
|
15
|
RBC Capital
Markets
|
$7,503
|
1.7 %
|
5
|
Total
|
$102,247
|
47.5 %
|
138
|
CCM was an advisor on a number of noteworthy transactions in
2022 including:
- Shift Technologies, Inc.'s merger with CarLotz, Inc.
- Athena Consumer Acquisition Corp. $913
million combination with Next e.GO Mobile
- Sizzle Acquisition Corp. $813
million combination with Critical Metals Corp. that will
result in the formation of Critical Metals Corp.
- Rubicon Technologies $1.7 billion
combination with Founders SPAC and $121
million PIPE
"We anticipate the IPO market to re-open in 2023 as volatility
subsides, though smaller entrants without a substantial
profitability profile will need to wait for further improvement in
risk appetite," shared Serowik. "We expect an increase in M&A
activity mid-to-late in the year and elevated levels of business
combinations. The DeSPAC activity can be attributed to the benefits
of the SPAC process, lending itself to bringing creative capital
solutions for smaller and earlier stage companies that will
continue to be shut out of the IPO market. Additionally, SPACs are
well positioned for more complicated stories and unique situations,
including up-listing, cross listing, carveouts, and re-capitalizing
public companies. Presently, there are hundreds of SPACs that are
running out of time to achieve an acquisition. Longer term, we
predict SPACs normalizing to higher volumes than historical levels
pre-2020, but significantly less than the last three years."
About Cohen & Company Capital Markets
Cohen & Company Capital Markets ("CCM"), a division of
J.V.B. Financial Group, LLC, has offices in Menlo Park, Calif. and New York City. CCM was founded in 2021 and has
established itself as an elite full-service boutique investment
banking firm with differentiated product expertise and bulge
bracket DNA. We partner with leading and emerging companies across
sectors to address strategic and financial opportunities, and
leverage a strong reputation, broad network, and superior execution
to serve our clients' interest first and always. CCM's
indirect parent is Cohen & Company Inc. (NYSE American:
COHN).
Citations
|
(1) SPAC research,
Bloomberg; Market data as of 12/31/2022
|
(2) SPAC Insider; Data
as of 12/31/2022
|
|
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SOURCE Cohen & Company Capital Markets