Former Barclays banker Rich Ricci is to head one of the UK’s biggest investment advisers following the merger of Panmure Gordon and rival Liberum.
In yet another shake-up of the stockbroking industry as it struggles amid a dearth of takeover deals, stock market listings and fundraisings, the two firms will combine to create Panmure Liberum.
The combined group will be one of the largest independent advisers to UK quoted companies with more than 250 corporate clients and 300 employees, working on everything from acquisitions to equity research.
It will be led by Ricci, who was installed as chief executive of Panmure Gordon after it was bought by his former Barclays boss Bob Diamond in 2018.
‘maddest f****r on the planet’: Rich Ricci has been chief executive of Panmure Gordon since 2018
Over 19 years at Barclays, Ricci, 60, became one of Diamond’s key lieutenants before both left the bank in the wake of the Libor-rigging scandal.
Announcing the Liberum deal, Ricci, a horse racing fanatic who once described himself as the ‘maddest f****r on the planet’, said: ‘The transaction will create a new force in UK investment banking.’
Diamond, who bought Panmure Gordon through his private equity firm Atlas Merchant Capital, added: ‘This merger will lift the level and quality of service to mid and small-cap businesses and investors in the UK and beyond.’
Liberum founder Shane Le Prevost will become chairman of the combined group, which plans to expand its offerings in mergers and acquisitions and private capital raisings as well as introduce a new debt advisory service.
City brokers have traditionally thrived on providing advice to UK Plc. But a 20-year low in London stock market listings last year, combined with an ongoing squeeze in research budgets since the implementation of new regulations in 2018, has meant the sector has struggled.
As a result, brokers have seen their revenues plunge since the beginning of 2022, prompting firms to diversify or merge.
Panmure Gordon, which failed in an effort to buy investment bank FinnCap last year, made a £16million loss in 2022 despite Ricci overhauling the business to focus on its core broking function.
Meanwhile, Liberum was £9million in the red in 2022 – its first ever loss. Last year investment bank Numis was snapped up by German lender Deutsche Bank, hoping to combine the broker’s City boardroom relationships with the German lender’s financial firepower. The combined group is gunning to be the top investment bank in the UK.
Meanwhile, the merger of brokers Cenkos and FinnCap in September created investment firm Cavendish, which has the most corporate clients at 184. Many in the City believe Ricci can make the merger a success.
A one-time star performer at Barclays, US-born Ricci ran its investment bank where he was a key lieutenant of Diamond, then the chief executive, until both men stepped down in 2012.
Despite his penchant for loud, windowpane checked suits and trilby hats when at the races – he called one of his racehorses Fatcatinthehat – Ricci is known to be a shrewd businessman.
Neil Wilson, an analyst at trading brand Markets.com, said: ‘There’s clearly some big egos involved in the deal against a difficult backdrop but Ricci and Diamond will have a plan in place to make this work.’
The creation of Panmure Liberum will bring one of the Square Mile’s oldest firms together with a relative upstart.
Panmure Gordon was founded in 1876 while Liberum, which started in 2007, is owned by its staff. Panmure has traded hands numerous times in its existence, including an acquisition by Lazard 20 years ago.
