Piper Sandler and BC Partners Credit Announce Strategic Alliance

Rhea-AI Summary

Piper Sandler Companies (NYSE: PIPR) and BC Partners Credit have announced a strategic alliance aimed at enhancing debt capital market access for financial services clients. This partnership combines Piper Sandler's Financial Services Debt Capital Markets expertise, which has executed over 550 transactions worth nearly $40 billion in gross proceeds over the past decade, with BC Partners Credit's $8 billion credit platform. The alliance addresses challenges faced by small-cap, mid-cap, and privately-owned banks in executing debt financing following the 2023 Federal Reserve rate hikes and bank failures. The collaboration aims to provide customized structures and financing solutions, with plans to include additional institutional investors over time.

Positive

• Track record of 550+ transactions with $40 billion in gross proceeds over past decade
• Strategic alliance with BC Partners Credit ($8 billion credit platform) expands financing capabilities
• Enhanced distribution network and capital access for debt offerings

Negative

• Challenging market conditions for debt capital market financings due to 2023 bank failures
• Difficult environment for small-cap and mid-cap banks to secure financing

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- Piper Sandler Companies (NYSE: PIPR), a leading investment bank, and BC Partners Credit, the $8 billion credit arm of international investment firm BC Partners, today announced a strategic alliance. The alliance, which leverages the expertise and broad networks of Piper Sandler's Financial Services Debt Capital Markets team and BC Partners Credit, paves the way for Piper Sandler's clients across the financial services sector to best access the debt capital markets with customized structures and financing solutions as they grow their businesses. The firms anticipate additional institutional investors will join the alliance over time to further complement and support future growth across sectors. 

Over the past decade, the Piper Sandler Financial Services Debt Capital Markets team has developed a specialized niche in managing debt transactions for regional and community banks, as well as non-bank specialty finance companies across the entire financial sector, executing more than 550 transactions and generating nearly $40 billion in gross proceeds. Leveraging its strong investment banking relationships, Piper Sandler expects to continue sourcing new debt mandates, ensuring a robust pipeline of opportunities, to provide bank and non-bank clients with a full suite of balance sheet, capital and funding solutions. While continuing traditional syndicated debt offerings in public and private markets, the strategic alliance with BC Partners Credit presents a supplementary avenue for growth and innovation in balance sheet solutions.

"Since the Federal Reserve's historic rate-hiking campaign and the multiple bank failures in the spring of 2023, it has become significantly more challenging for small-cap, mid-cap, and privately-owned banks, as well as non-bank financial companies, to execute debt capital market financings," said Jacques de Saint Phalle, Head of Piper Sandler Financial Services Debt Capital Markets. "BC Partners Credit's substantial capital base and extensive distribution networks will significantly bolster our market-leading transactional distribution platform."

BC Partners Credit is a fully diversified credit manager with a track record of providing bespoke capital solutions to companies across a range of industries, including banks, specialty finance companies, fintech platforms, insurers, and asset managers. In addition to providing capital, BC Partners Credit also has a dedicated team focused on managing the assets of insurance and re-insurance companies.

"We are excited to collaborate with Piper Sandler, offering their clients a comprehensive suite of financial solutions that can help propel their businesses" said Ted Goldthorpe, Head of BC Partners Credit. "As a fully diversified credit manager, with deep pools of capital and a vast network, we are well positioned to provide anchor demand, driving optimal structure and pricing. Likewise, our limited partners will have access to many compelling investment opportunities across the capital structure, with strong projected returns."  

Supporting this partnership will be Sam Reinhart, a newly appointed Managing Director and Head of FIG Solutions at BC Partners Credit. Reinhart previously served as Head of Banks and Diversified Financials at UBS Group AG and began his career working with Jacques de Saint Phalle. Mr. Reinhart said, "I'm excited to once again partner with Jacques and the Piper Sandler team to deliver efficient and innovative capital solutions to their exceptional financial services client base."

ABOUT PIPER SANDLER
Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; in the EU through Aviditi Capital Advisors Europe GmbH, a tied agent of AHP Capital Management GmbH, authorized and regulated by BaFin; and in Hong Kong through Piper Sandler Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates.

Follow Piper Sandler: LinkedIn | Facebook | X

ABOUT BC PARTNERS AND BC PARTNERS CREDIT
BC Partners is a leading international investment firm in private equity, private debt, and real estate strategies. BC Partners Credit was launched in February 2017, with a focus on identifying attractive credit opportunities in any market environment, often in complex market segments. The platform leverages the broader firm's deep industry and operating resources to provide flexible financing solutions to middle-market companies across Financial Services, Business Services, Industrials, Healthcare and other select sectors. For further information, visit www.bcpartners.com/credit-strategy.

MEDIA CONTACTS

Piper Sandler
Nick Lawler
212-891-8954
nick.lawler@psc.com

BC Partners
Luke Charalambous
Luke.charalambous@BCPartners.com
+44 7775 180 721

Kekst CNC
Shea.Vilardi@kekstcnc.com / Daniel.Yunger@kekstcnc.com 

 

View original content:https://www.prnewswire.com/news-releases/piper-sandler-and-bc-partners-credit-announce-strategic-alliance-302292685.html

SOURCE BC Partners/Piper Sandler

FAQ

What is the value of transactions executed by Piper Sandler's (PIPR) Financial Services Debt Capital Markets team?

Piper Sandler's team has executed more than 550 transactions generating nearly $40 billion in gross proceeds over the past decade.

Why did Piper Sandler (PIPR) form an alliance with BC Partners Credit?

The alliance aims to enhance debt capital market access for financial services clients, providing customized structures and financing solutions, particularly in response to challenges following the 2023 Federal Reserve rate hikes and bank failures.

What is the size of BC Partners Credit's platform in the Piper Sandler (PIPR) alliance?

BC Partners Credit is the $8 billion credit arm of international investment firm BC Partners.