Piper Sandler Enters Definitive Agreement to Acquire Aviditi Advisors
Piper Sandler (NYSE: PIPR), a leading investment bank, announced a definitive agreement to acquire Aviditi Advisors, an alternative investment bank. Aviditi, founded by Ryan Schlitt and John Robertshaw, offers services in primary fundraising, secondary solutions, and capital markets.
The acquisition will integrate Aviditi's capabilities into Piper Sandler's private equity M&A and capital markets franchises. Aviditi has advised on over $30 billion in transactions since its 2020 inception. The team comprises 50 professionals across North America and Europe.
The transaction is expected to close in late Q3 2024, subject to regulatory approvals and customary conditions. Post-acquisition, Schlitt and Robertshaw will join Piper Sandler as head and vice chairman of private capital advisory, respectively.
- Piper Sandler expands capabilities with Aviditi Advisors, enhancing fundraising, secondary solutions, and direct investment capital services.
- Aviditi has advised on over $30 billion in transactions since its 2020 inception.
- The acquisition adds 50 professionals, including ten managing directors, to Piper Sandler.
- Aviditi's founders bring substantial experience from Credit Suisse, Donaldson, Lufkin & Jenrette, and iCapital.
- The transaction's completion is contingent on regulatory approvals and other customary closing conditions, introducing potential delays or complications.
- The integration of Aviditi Advisors into Piper Sandler could involve significant operational challenges and costs.
Insights
From a financial perspective, Piper Sandler's acquisition of Aviditi Advisors is highly significant. This acquisition is poised to substantially enhance Piper Sandler's offerings in private equity and capital markets. Aviditi Advisors brings expertise in primary fundraising, secondary solutions and capital markets solutions – areas that are important for financial sponsors and alternative investment managers.
The mention of having advised on
For retail investors, this means Piper Sandler could see enhanced profit margins and an expanded client base, possibly driving
The acquisition has broader implications for the investment banking industry. By integrating Aviditi Advisors into its platform, Piper Sandler positions itself to offer more comprehensive solutions to private equity firms and alternative investment managers. The increased focus on secondary solutions is particularly noteworthy, as this area has been growing in importance within the industry due to the increasing complexity of private equity transactions.
This move might prompt competitors to re-evaluate their own service offerings and could catalyze further consolidations or partnerships in the sector. For retail investors, it's essential to understand that while such acquisitions can drive strategic growth, they also come with operational challenges and require successful cultural integration to realize their full potential.
Legally, this acquisition is subject to regulatory approvals and other customary closing conditions, expected to be completed by late third quarter of 2024. The involvement of renowned law firms like Sullivan & Cromwell LLP and Mayer Brown LLP suggests a meticulous approach to navigating the regulatory landscape. Investors should be aware of potential regulatory risks, which could delay or even derail the transaction.
Moreover, the acquisition will likely involve extensive due diligence and the need to align corporate governance practices between the two entities. Retail investors should keep an eye on any updates regarding regulatory approvals or any legal challenges that could arise, as these will influence the timeline and eventual success of the acquisition.
Acquisition adds premier fundraising, secondary solutions and direct investment capital capabilities to the firm’s market-leading private equity M&A and capital markets franchises
Aviditi Advisors is a premier alternative investment bank providing full lifecycle services to financial sponsors, global alternative investment managers and limited partner investors with offices in
Aviditi Advisors will form Piper Sandler’s private capital advisory group, adding yet another industry-leading practice to Piper Sandler’s investment banking platform. The team consists of approximately 50 professionals across
“Ryan and John have built a tremendous team and business, and one that is highly complementary to our leading, private equity-focused advisory platform. Fundraising, private capital markets and secondary solutions, including continuation vehicles, are of central importance to financial sponsors. Aviditi provides these critical capabilities and increases the value of our combined platform to our single largest client base – private equity,” said Mike Dillahunt, global co-head of investment banking at Piper Sandler.
Ryan Schlitt, chief executive officer and co-founder of Aviditi Advisors, commented, “We are extremely excited to be joining the Piper Sandler platform. It represents the next chapter of growth for our firm and service capabilities. Aviditi has been designed from the ground up to focus on the full lifecycle of business in which our clients engage both in the general partner and limited partner communities. We are fully integrated as a business and as a team, proving that a model focused on capital formation, liquidity solutions and capital solutions can deliver differentiated value to our clients. By combining with a market-leading platform like Piper Sandler, we believe we can grow to new heights. We provide special thanks to our investors and clients whose support helped build a premier franchise, and we are excited to continue to build upon this momentum in partnership with Piper Sandler.”
The transaction is expected to close in late third quarter of 2024 and is subject to obtaining required regulatory approvals and other customary closing conditions. Piper Sandler was advised by Sullivan & Cromwell LLP. Mayer Brown LLP and Keefe, Bruyette & Woods served as advisors to Aviditi Advisors in connection with the transaction.
About Aviditi Advisors
Aviditi Advisors is a premier alternative advisory firm servicing global alternative investment managers and investors who allocate to the sector (private and public). Aviditi stands apart in its fully integrated model across both illiquid and liquid advisory solutions, enabling the firm to provide full lifecycle outcomes to clients. Learn more at www.aviditiadvisors.com.
About Piper Sandler
As a leading investment bank, we enable growth and success for our clients through deep sector expertise, candid advice and a differentiated, highly productive culture. We transcend transactions to define possibilities—enabling clients to achieve their short-term goals while realizing their long-term vision. Founded in 1895, the firm is headquartered in
Cautionary Note Regarding Forward-Looking Information
This announcement contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other things, the future prospects and growth of Piper Sandler. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including the following: (1) the transaction described in this announcement is subject to customary closing conditions, including obtaining required regulatory approvals, and may not close on the expected timing or at all; (2) the costs or difficulties relating to the combination of the businesses may be greater than expected and may adversely affect our results of operations and financial condition and our ability to realize anticipated synergies from the transaction; (3) the expected benefits of the transaction may take longer than anticipated to achieve and may not be achieved in their entirety or at all, and will in part depend on the ability of Piper Sandler to retain and hire key personnel and maintain relationships with its clients; (4) developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, the business and profitability of Piper Sandler generally and its investment banking business specifically; and (5) other factors identified under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, and updated in our subsequent reports filed with the SEC. These reports are available at pipersandler.com or sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.
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
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Nick Lawler
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Source: Piper Sandler Companies
FAQ
What is the impact of Piper Sandler's acquisition of Aviditi Advisors on fundraising services?
When is the Piper Sandler acquisition of Aviditi Advisors expected to close?
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