Madison Williams Buys Capital Markets Business of Sanders Morris
December 11, 2009
Madison Williams and Company, an 80-person investment banking and advisory firm based in New York, said it completed a management buyout of the principal capital markets business from asset manager Sanders Morris Harris Group of Houston.
The new firm has received its broker-dealer license from the Financial Industry Regulatory Authority and is now privately owned by management, employees, and key institutional investors, including Fletcher International, Inc.
Madison Williams said it will concentrate on industry and product sectors such as the energy industry, where its investment banking, research and institutional sales and trading services can be most effective.
"Over the past 25 years, investment banking firms have become increasingly
transaction-oriented at their clients' expense," says President and Chief Executive
Officer William Sprague, the former head of the Capital Markets business of SMH
Capital. "As a private company, we can more efficiently focus on the longer-term needs
of our clients by providing thoughtful solutions that meet their financial and strategic
needs."
Madison Williams's energy transactions include advising Resaca Exploration, Inc. in its recently announced merger with Cano Petroleum. Most recently the firm (as SMH Capital) completed a secondary offering of three million common shares for GeoResources.
In addition to providing institutional sales and trading serices, Madison Williams is
one of a few firms that offers hedging to the mortgage banking industry.
Sanders Morris Harris Group, which trades on the Nasdaq as SMHG, retains a minority stake in Madison Williams.
Sanders Morris Harris Group is a wealth management company that manages
approximately $10.6 billion in client assets.
The buyout comes after Sanders Morris Harris Group posted third-quarter net income of $843 thousand or $0.03 per share compared with $28.96 million or $1.03 per share in the prior year period. For nine months, net loss attributable to the company was $10.5 million or $0.38 per share compared with a net income of $33.04 million or $1.23 per share in the previous year period.
