To combat top-line pressure, banks are aspiring different sources of revenues. Recently, Financial Times reported, The PNC Financial Services Group, Inc. (PNC) has entered a prospering IPO advisory market by penning a deal to buy an independent equity advisory firm – Solebury Capital.
As per the source, the deal has been bought for $50 million. Moreover, it is expected to close later this week.
With the volume of global equity offerings reaching the highest levels since 2007 and recovery of IPOs and secondary offerings, the advisory business has gained momentum. Therefore, banks and independent advisers, which act as mediators for corporate issuers and the banks, are increasingly opting for this low cost oriented and high margin business. Moreover, advisers contrary to underwriters have less risks involved and low regulatory inquiry.
As per the company’s website, Solebury’s clients include some of the world’s largest private equity groups – The Blackstone Group L.P. (BX), Kohlberg Kravis Roberts & Co. L.P. (KKR) and The Carlyle Group LP (CG). Further, banks as clients include The Goldman Sachs Group, Inc. (GS) and Bank of America Merrill Lynch, a unit of Bank of America Corporation (BAC).
PNC Financial, mainly a consumer and commercial banking services provider has an advisory division – Harris Williams & Co. bought in 2005. The division provides advisory services to middle market companies on mergers and acquisitions (M&A) but is not working as an investment bank. On the other side, Solebury aids its clients to maintain investor relations and regulatory needs.
Therefore, with the expertise of M&A business and Solebury's services, PNC Financial would be able to offer efficient services to clients and make the company public.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment