Amherst Securities Group And Pierpont Securities Merge To Create Market-Leading Fixed-Income Broker-Dealer

AUSTIN, Texas and STAMFORD, Conn., July 1, 2014 /PRNewswire/ -- Amherst Securities Group, LP ("Amherst Securities"), a fixed-income broker-dealer focused on mortgage-related, asset-backed and structured finance investments, and Pierpont Securities LLC ("Pierpont"), a fixed-income broker-dealer focused on rates and credit products, today announced that they have entered into a definitive agreement to merge in a transaction that will create a market-leading fixed-income broker-dealer.  The combined company will be known as Amherst Pierpont Securities LLC ("Amherst Pierpont Securities").  Financial terms of the transaction were not disclosed.    

Amherst Pierpont Securities will provide institutional and middle-market clients with access to a broad range of fixed-income products including residential and commercial mortgage-backed securities, asset-backed and other highly-structured finance transactions, U.S. Treasuries, federal agency debentures, investment grade corporate securities and repo finance.  In addition, the firm will offer industry-leading analytics, an enhanced trading platform and a broader distribution network.  Amherst Pierpont Securities will have the scale and infrastructure to support a diverse set of trading and banking businesses.  At the same time, it will maintain the entrepreneurial culture that exists at both firms.  The combined company is poised for future growth and will continue to seek opportunities to further expand its business based upon a strong and scalable operational infrastructure.

Amherst Pierpont Securities will be led by Mark B. Werner, the current Chief Executive Officer of Pierpont, and Joseph N. Walsh III, the current President of Amherst Holdings LLC ("Amherst Holdings").  Mark and Joe will retain their respective titles at the new company.  Thomas C. Connor, the current President of Pierpont, will serve as Chief Operating Officer.  Amherst Pierpont Securities will have nearly 200 employees across 19 offices and will be headquartered in Stamford, CT with sales and trading hubs in both Stamford and New York City.

"Combining Amherst's unparalleled leadership in mortgage-related securities and Pierpont's liquid product-related offerings will create a scalable platform that will have an unmatched ability to capture future growth opportunities," said Mr. Werner.  "We have long respected Amherst's impressive capabilities in the mortgage space and look forward to leveraging Pierpont's strengths to grow the combined firm."

"Together, Amherst and Pierpont are poised to compete with broker-dealers of all sizes, and through the complementary strengths of both firms, are well equipped to meet the diverse and evolving needs of fixed-income clients in today's challenging market," said Mr. Walsh.  "This combination demonstrates a strong commitment to growth at a time when many institutions are reducing their investment in their fixed-income businesses."

Amherst Securities is currently a wholly owned subsidiary of Amherst Holdings, a leading financial services provider to institutional investors in the mortgage and structured finance sectors; upon completion of the transaction, Amherst Holdings will continue to have operating subsidiaries in the mortgage and residential real estate asset management industries.  Amherst Holdings' proprietary analytics currently utilized by Amherst Securities will be licensed to the combined company following the close of the merger.  The transaction, which is subject to FINRA and other regulatory approvals and customary closing conditions, is expected to close in the second half of 2014. 

The combined company's capital position is driven by a strong and consistent ownership group.  Amherst Holdings and investment funds managed by Stone Point Capital LLC ("Stone Point") and General Atlantic will be major shareholders in the combined company.  Pierpont is currently owned by Stone Point and General Atlantic.  In addition, Stone Point is a minority investor in Amherst Holdings.

"Amherst Securities and Pierpont have both built strong businesses in their respective sectors, and we believe that combining the two broker-dealers will create a leader in the fixed-income and advisory markets," said Charles A. Davis, Chief Executive Officer of Stone Point Capital.  "We look forward to continuing to work with our partners at Pierpont, Amherst Holdings and General Atlantic to create an outstanding fixed-income franchise."

Shearman & Sterling LLP served as legal advisor to Pierpont, and Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to Amherst Holdings.

About Amherst

For over 20 years, the Amherst companies have provided institutional investors with a suite of financial services related to the U.S. mortgage markets and securitized products and were one of the few residential mortgage specialists to anticipate the 2008 mortgage crisis.  Amherst's extensive data resources and proprietary analytical tools are considered the market leaders in the areas of behavioral economics and real estate lending risk analysis.  Based on the company's advice and performance during the financial crisis, the company has become a valued advisor to many federal agencies and policy makers endeavoring to construct a more stable set of housing policies and programs.  Amherst Holdings conducts $50 billion each year in mortgage-related transactions, consistently operating above expectations with no down quarters in the last 15 years.  Amherst Holdings is majority employee-owned and has 132 associates around the globe.

Amherst Securities is the investment bank subsidiary of Amherst Holdings and, through its New York and Hong Kong facilities, provides brokerage, underwriting and market-making services to a global roster of the largest investors in U.S. real estate debt-related instruments. Amherst Securities is a member of FINRA, and an underwriter for FNMA, FHLMC and The Federal Home Loan Bank System. For further information about Amherst Holdings and Amherst Securities, see www.amherst.com.

About Pierpont Securities

Pierpont Securities is a self-clearing, SEC-registered broker-dealer established in 2009.  Pierpont acts as principal in the U.S. Treasury, federal agency, investment grade credit, mortgage-backed securities and financing markets, and serves institutional clients globally.  For further information about Pierpont, see www.pierpontsecurities.com.  Pierpont is a member of FINRA and SIPC.

About Stone Point Capital

Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, CT.  The firm has raised six private equity funds – the Trident Funds – with aggregate committed capital of approximately $13 billion.  In addition to the capital invested by the Trident Funds, Stone Point has secured approximately $7 billion of equity co-investments since 2001.  Stone Point targets investments in the global financial services industry, including investments in companies that provide outsourced services to financial institutions, banks and depository institutions, asset management firms, insurance and reinsurance companies, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies.  For further information about Stone Point, see www.stonepoint.com.

About General Atlantic

General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies.  GA combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide.  Established in 1980, GA has approximately $17 billion in assets under management and more than 80 investment professionals based in New York, Greenwich, Palo Alto, Sao Paulo, London, Munich, Amsterdam, Beijing, Hong Kong, Mumbai and Singapore.  For further information and a listing of GA's public and private portfolio companies, see www.generalatlantic.com. 

SOURCE Amherst Securities Group, LP