Cohen & Company Capital Markets Highlights Strong 2023
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Insights
The data presented indicates a significant presence of Cohen & Company Capital Markets (CCM) in the de-SPAC market, with the firm achieving a 28% market share. This performance, particularly in a year where overall IPO and SPAC activity declined, showcases the firm's strategic positioning and expertise in this niche segment. The increase in deal volume and market share for CCM suggests a strong competitive advantage and potential for continued growth, especially given the forecast for increased M&A activity and SPAC issuance in 2024.
Investors may view these statistics as a positive signal of the firm's robust pipeline and execution capabilities. The announcement of senior leadership appointments could further bolster investor confidence, as it implies a reinforcement of strategic direction and leadership. However, it's crucial to monitor how these new executives integrate and contribute to the firm's performance going forward.
The reported financial figures, such as the $16 billion M&A volume represented by CCM, are substantial and indicative of the firm's impact on the de-SPAC market. Given the volatility in the capital markets, CCM's ability to maintain leadership in de-SPAC advisory services speaks to their adaptability and the potential resilience of their business model. The mention of creative funding solutions such as convertible notes and equity lines of credit is noteworthy as it highlights the firm's innovative approach to overcoming market challenges.
From a financial perspective, the shift towards increased private equity activity and recapitalization efforts in 2024 could lead to a more dynamic market environment, potentially benefiting firms like CCM that have demonstrated expertise in these areas. However, the sustainability of this performance is contingent upon continued market demand and the firm's ability to capitalize on the predicted recovery in M&A activity.
The broader economic context discussed, including disinflation progress and a resilient economic backdrop, provides a macroeconomic perspective on CCM's performance. The firm's success in the de-SPAC market aligns with the overall positive momentum in equities at year-end and the growth of the 'soft-landing' narrative. The anticipated Fed easing and the balance of slowing economic growth with positive indicators could create a conducive environment for CCM's projected growth in IPO issuance and M&A activity.
However, it's important to recognize the potential risks associated with economic slowdowns and shifts in investor sentiment. While CCM has demonstrated strong performance in a challenging market, continued success will depend on the firm's ability to navigate the complex interplay of economic factors that influence capital markets.
Ranked Leading Advisor in the De-SPAC Market for 2023
Well Positioned to Build on Momentum in 2024 Driven by Increased Deal Volume
Announces Three New Appointments to Senior Leadership Team with Nearly 50 Years of Combined Experience
Top Ranked Industry Advisory Teams Including #1 Bitcoin Banker by Hashrateindex
Strong 2023 & Outlook for 2024
Despite challenges in the new issue markets, CCM was the leading advisor in the de-SPAC market for the second year in a row. CCM advised on 29 announced or closed de-SPAC deals, representing nearly
De-SPAC Advisory Statistics for 2023 | ||||
Rank | Advisor Name | Value ($M) | Market Share | Total Deal |
1 | CCM | 27.9 % | 29 | |
2 | Maxim Group | 5.5 % | 9 | |
3 | EF Hutton | 4.8 % | 8 | |
4 | Roth Capital | 3.6 % | 6 | |
5 | Citigroup | 3.0 % | 5 | |
6 | Credit Suisse | 3.0 % | 5 | |
7 | Chardan | 2.4 % | 4 | |
8 | EarlyBirdCapital | 2.4 % | 4 | |
9 | Arc Group | 2.4 % | 4 | |
10 | Jefferies | 1.8 % | 3 | |
11 | TD Cowen | 1.8 % | 3 | |
12 | BTIG | 1.8 % | 3 | |
13 | UBS | 1.8 % | 3 | |
14 | Morgan Stanley | 1.2 % | 2 | |
15 | BTG Pactual | 1.2 % | 2 | |
Total | 64.8 % | 90 | ||
De-SPAC transactions include all De-SPAC transactions announced or closed between 1/1/2023 – 12/31/2023 (1) | ||||
De-SPAC and IPO Advisory Statistics – Total Transactions | |
CCM | 29 |
Citi | 16 |
J.P. Morgan | 14 |
Jefferies | 13 |
Bank of America | 12 |
Goldman Sachs | 12 |
Barclays | 11 |
Stifel | 11 |
Maxim | 10 |
Piper Sandler | 10 |
IPOs include all registered US listed IPOs over
CCM played a crucial role as an advisor in several significant transactions, including:
- Powermers
$2B N - Zoomcar's
$903M - Blaize's
$894M - Athena Consumer's
$848M - GLAAM/Captivision's merger with Jaguar Global Growth Corp; and
- Peak Mining's purchase of a 300 MV mining data center site.
"Reflecting on CCM's progress, this past year has been a testament to our team's resilience and ability to successfully adapt to market fluctuations," said Dan Nash, Co-founder, and Head of Investment Banking at CCM. "We continue to innovate, finding creative solutions to navigate our clients through all markets. Over the past two years, the de-SPAC market remained a viable avenue for issuers to access the public markets, and there are strong indicators that demand for new SPAC issuance is likely to increase into the new year."
Capital Markets 2023 Year in Review
Over the past year, the capital markets continued to recover from recent volatility. Disinflation progress and a resilient economic backdrop helped drive positive year-end equities momentum and the growth of the soft-landing narrative. 2024 outlook continues to trend upwards as investors balance expectations for meaningful Fed easing and possible slowing with positive economic growth.
New issue markets remained challenged throughout the year. IPO issuers faced difficulties with demand as several high-profile issuers experienced underwhelming starts. Despite these headwinds, the follow-on market showed signs of improvement in 2023 over 2022. Follow-on issuers were able to utilize positive market momentum to gain access to public capital, with issuance volumes increasing approximately
SPAC IPO issuance also decreased from 2022 levels as demand for new SPACs was offset by a significant increase in SPAC extensions. However, with elevated SPAC liquidations returning earmarked capital to investors, demand for new SPAC issuance is showing signs of strengthening in 2024.
The de-SPAC market remained a prominent and viable avenue for issuers to access the public markets in 2023, particularly in the healthcare and technology industries. De-SPAC issuers navigated the challenging market backdrop by implementing creative funding solutions including convertible notes, IP notes, FPA-like structures, and equity lines of credit. 2023 de-SPACs performed better than those closed in 2022, as de-SPACs with more mature business models, stronger fundamentals, and more attractive valuations received greater market receptivity.
New Issuance Market Overview | |||||
Status | 2021 | 2022 | 2023 | 2022-2023 % Change | 2021-2023 % Change |
IPOs | 347 | 34 | 40 | 17.6 % | (88.4 %) |
Follow-Ons | 755 | 285 | 372 | 30.5 % | (50.7 %) |
SPAC IPOs | 613 | 86 | 31 | (64.0 %) | (94.9 %) |
Announced De-SPACs | 225 | 128 | 138 | 7.8 % | (38.7 %) |
Closed De-SPACs | 199 | 102 | 98 | (3.9 %) | (50.8 %) |
IPOs include all registered US listed IPOs over | |||||
Jerry Serowik, Co-Founder and Head of Capital Markets at CCM, commented, "As we enter the new year, and inflation continues to level out, economic growth is bound to slow. This, in turn, may have a positive impact on the IPO market. With global inflation easing and a potential reduction of interest rates, investors are likely to experience more reliable returns on IPO investments. That said, there still seems to be hesitancy towards the IPO market, and business combinations have produced improved outcomes for issuers. SPACs offer a unique value proposition, and as a firm, we are optimistic about the continued opportunity for de-SPACs."
Top Ranked Industry Coverage Investment Teams
Christian Lopez, Head of Blockchain & Digital Infrastructure at CCM, has been recognized as the number one investment banker in Bitcoin mining in 2023 by the Hashrateindex annual rankings. His initiatives within the space, including a number of roles in Bitcoin mining transactions, have garnered him continued accolades. In 2023, he played a pivotal role in several Bitcoin mining transactions including advising Peak Mining's purchase of a 300 MV mining data center site in
Recent Additions to Senior Leadership Team
After a remarkable year of execution and expansion, the firm is delighted to announce the hiring of Sean Bernsohn, Zac Costello, and Steve Weiner, three highly regarded senior bankers who will continue to drive CCM forward as a leading strategic advisor. The appointments of Bernsohn, Costello, and Weiner come following the hiring of Gary Quin, who was recently brought on to lead the firm's efforts in
- Sean Bernsohn brings 20 years of expertise in debt capital markets, restructuring, and arranging financing in the syndicated loan, high yield, and private debt markets.
- Zac Costello has more than 13 years of Wall Street experience across capital markets, sales and trading, and private placements.
- Steve Weiner spent the last 15 years in technology M&A and corporate finance.
"We are extremely excited to bring Sean, Zac, and Steve on board at Cohen & Company Capital Markets," said Jerry Serowik. "Their extensive track records in pivotal roles across leading financial institutions underscore their capabilities in driving exceptional outcomes for clients. Their expertise in M&A, debt, and equity capital markets aligns well with our vision for continued growth and excellence in delivering top-tier solutions to our clients and partners."
Outside of the firm's expertise in M&A, capital markets, and SPAC advisory, CCM has deep expertise in a number of verticals such as blockchain and digital assets, auto-tech, clean-tech, cyber security, and other emerging, high-growth industry verticals. CCM's full suite of banking products, combined with a broad spectrum of sector competencies has contributed to the firm's continued positive performance and growth.
About Sean Bernsohn
Sean Bernsohn brings more than 20 years of experience in the debt capital markets and restructuring. With a track record of orchestrating transactions exceeding
Prior to CCM, Sean led the successful launch and development of FTI Consulting's debt capital markets advisory effort. He has advised several prominent institutions, including the Federal Reserve Bank of
About Steve Weiner
Steve Weiner brings more than 15 years of multifaceted experience in investment banking and corporate finance, specializing in buy and sell-side mergers and acquisitions. With a robust background in mergers and acquisitions, across a diverse set of sectors encompassing technology, consumer, and financial industries, Steve has played a critical role in structuring and negotiating more than 50 M&A transactions exceeding
Prior to CCM, Steve was in technology M&A investment banking at Morgan Stanley where he acted as a strategic leader, driving technology acquisitions, divestitures, strategic investments, joint ventures, and partnerships. Steve also spent nearly ten years at J.P. Morgan Technology M&A Investment Banking, further showcasing his adeptness in driving strategic technology transactions, expertise in deal sourcing, relationship building, and managing cross-functional due diligence processes. During his tenure at J.P. Morgan, he contributed to several successful deals, including the sale of Ring to Amazon and the merger of IAC's HomeAdvisor business with Angie's List. Steve holds an MBA from The Wharton School at the University of
About Zac Costello
Zac Costello has more than 13 years of Wall Street expertise in capital markets, sales and trading, and private placements. Zac has extensive experience aiding private companies with their capital raise needs, originating private placement opportunities, and executing on IPOs, follow-ons, convertible notes, and SPAC transactions. Prior to joining CCM, Zac worked on the private placements team within Equity Capital Markets at Citigroup, helping private companies raise money across the capital structure. Prior to that, Zac was a deal captain on the syndicate desk, responsible for executing IPOs, follow-ons, convertible notes, PIPEs, and block trades, also advising on numerous SPAC transactions. Additionally, Zac helped spearhead the international syndicate effort, marketing deals from around the globe to NAM investors. Before joining Equity Capital Markets, Zac worked as a sales trader in Delta One and Securities Lending. Some of Zac's most notable deals include Nu Holdings IPO, the business combination of Black Rifle Coffee, and CI&T's IPO. Zac graduated with an MBA from
About Cohen & Company Capital Markets
Cohen & Company Capital Markets ("CCM"), a division of J.V.B. Financial Group, LLC, has offices in
Citations
(1) SPAC Insider, Data as of 12/31/2022
FactSet, Data as of 12/29/2023
Dealogic, Data as of 12/29/2023
EY "Global IPO Trends 2023 Report," Data as of 12/14/2023
JPMorgan "Eye On the Market | Outlook 2024," Data as of 1/1/2024
Media Contact:
Lauren Raimondo
lraimondo@cohencm.com
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SOURCE Cohen & Company Capital Markets
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