Combined firm will have over $12 billion in AUM, 650 employees in New York, Houston, London, Denver, San Francisco, Dubai, Abu Dhabi, and Calgary

Long-time energy bankers and advisors Tudor, Pickering, Holt & Co. (TPH) and global advisors and asset managers Perella Weinberg Partners announced this morning that they have entered into a definitive transaction agreement to combine the two companies under the name Perella Weinberg Partners.

TPH’s energy practice will continue to operate as Tudor, Pickering, Holt & Co. The transaction is expected to close in the fourth quarter of 2016, the companies said in a news release. Terms of the transaction were not disclosed.

PWP’s founding investors will remain shareholders in the combined company, with some providing additional growth capital, the company said.

The combined firm will provide financial advisory services, asset management solutions, and energy securities research, underwriting and trading services.

This transaction will add nearly $2 billion of AUM to Perella Weinberg Partners’ asset management business, the companies said.

The Robert K. Steel, CEO of Perella Weinberg Partners, said, “We recognize the preeminent role that TPH has built as an energy banker in North America, the respect it has earned in the industry, and its leadership and strong voice in Houston. The combination also adds TPH’s securities business, renowned for its deep domain research and thought-leadership, which will strengthen our ability to provide industry knowledge.”

“TPH will continue as it is today – fast moving, knowledgeable, creative, and specialized,” added Steel. “With deep roots in Texas and the energy industry, we are dedicated to furthering TPH’s strong and distinctive commitment to Houston, the energy capital of the world.”

During a conference call regarding the transaction, Dan Pickering said that both firms will continue to blend public and private investment mandates. He pointed out that the combined company would seek to become the leader in energy restructurings, with PWP bringing restructuring to the table, and TPH bringing the energy expertise. He said it would be “business  as usual as far as private equity and credit investing across the space” and business as normal for the portfolio companies of both companies.

Robert B. Tudor, III, Chairman and CEO of Tudor, Pickering, Holt & Co., said in a statement, “Perella Weinberg Partners has a terrific reputation as a trusted advisor to executives at the world’s leading corporations and a culture of superior client service. We believe our clients and employees will benefit meaningfully from a TPH with broader global reach, expertise in new areas, and greater access to capital. Our longstanding personal and professional relationships with PWP’s leadership team give us great confidence that the two firms will be even better together.”

The combined advisory business will have deep expertise in key industry verticals — energy, healthcare, consumer/retail, TMT, industrials and financial institutions. This transaction will deliver to TPH an expanded Middle East and European footprint and complementary offerings such as restructuring, while augmenting expertise in shareholder activism advice and capital markets. The firms said it expects to target deeper penetration in energy-adjacent sectors, such as chemicals and diversified industrials.

Maynard Holt, TPH Co-President and Co-Head of Investment Banking, said, “For our clients, ‘TPH 2025’ can now be delivered in 2017.”

TPH’s energy securities business, including the Morning Note and other research publications, will continue unchanged.

Maynard Holt will assume the role of TPH chief executive officer while Robert B. Tudor III, who has been chairman and CEO, will continue in his role as chairman. As chairman, Mr. Tudor will join the executive committee at PWP. Dan Pickering will be president and chief investment officer of the energy asset management business, and join the leadership of the combined asset management business.

PWP advised clients on transactions representing more than $1 trillion in announced value including two +$100 billion transactions in the last twelve months. It is advisor to AT&T on its pending $108.7 billion acquisition of Time Warner and it is lead advisor to Altria on AB Inbev’s $120 billion acquisition of SABMIller.

TPH has advised on more than $175 billion of advisory engagements in the upstream, infrastructure, and oilfield service energy sectors and participated in over $75 billion of capital markets transactions across those sectors, with a particular focus on initial public offerings. TPH has advised on more than 40 deals in the Permian Basin totaling approximately $40 billion, including Encana’s $7.1 billion purchase of Athlon, and emerging Delaware Basin transactions including WPX’s $2.75 billion acquisition of RKI and the recent sale of Centennial for $1.575 billion.

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