Perella Weinberg

Is Perella Weinberg built Ford tough?

While it may not pack the bite of a three-headed hellspawn, I-bank All Star team Perella Weinberg might get to make auto ripples of its own in helping to find a buyer for the Ford family stake in Ford. The Ford family current owns a 40% voting stake in the company, although the value of the family’s shares has dropped almost 75% in value in the last 8 years (from $2.3bn to $584mm) when Bill Ford took over the company as chairman. The Ford family is playing hard to get with its potential advisor. Last month the Fo’Fam decided not to hire an investment bank, but just recently, according to several sources of Bloomberg News, the family changed its tune, and *probably* is ready to hire a bank after all.
Goldman traditionally advises Ford, but Perella Weinberg may have an ever deeper connection with the auto-maker. Peter Weinberg’s grandfather Sydney was a personal advisor to Henry Ford and played an advisory role in Ford’s 1956 IPO.
Despite the problems in Ford’s core business, the Ford family ceding equity control of the company may be a good thing for the company, considering that Ford family control was a sticking point in a potential equity alliance with Nissan last year.
If it lands Ford, Perella Weinberg is set to have one heck of a May, as it is also the co-lead advisor in the $17.5bn Thomson bid to take over Reuters (and the bank has only done $34bn in deals since inception).
Ford Family Members Weigh Sale of Shares, People Say [Bloomberg]

  • 08 May 2007 at 4:40 PM
  • Banks

Perella Weinberg finally kills the rare US elephant

shootinganelephantperellaweinbergreutersfordmotorcompany.jpgPerella Weinberg, the I-banking All Star boutique founded in 2005, finally snagged a marquee US deal, right after losing another potential elephant. The bank is a co-lead advisor to Thomson in its bid to take over Reuters for $17.5bn.
Ford is the elephant that escaped. With Perella the frontrunner to land the deal, the Ford family decided not to hire an investment bank (at the moment) to decide what to do with its 40% voting stake in the company.
Despite what’s hanging over the mantle, Perella claims to be quite the avid deal hunter. Although Perella has been credited with advising $34bn in deals since inception, the firm claims it has worked on $60bn worth of now defunct deals that you don’t even know about.
Time out (Zack Morris style)… Is that a valid metric to anyone but a boutique investment bank trying to impress people? I’m sure a bulge bracket bank could say that’s it’s worked on [pick an insane and arbitrary dollar amount here] worth of “potential” deals.
The largest deal Perella ever landed was Unibail’s $19bn acquisition of Rodamco Europe, which, until now, dwarfed the firm’s largest US deal (the $700mm Pathmark sale to A&P).
The Ford Deal That Got Away From Perella Weinberg – [WSJ Deal Journal]
Joe Perella Gets His Headline Deal – [DealBook]

  • 08 Mar 2007 at 4:13 PM
  • KKR

We’re All Treehuggers Now?

tpgtreehuggers.comWhen Holman Jenkins penned his now famous column on the TXU deal, even we were stunned by the depth of his cynicism. He clearly thinks the “treehugger” alarm being raised by those wondering if the environmentalists had captured the private equity firms that were buying the texas energy giant is just plain naïve. Obviously no ideological group had captured KKR or the Texas Pacific Group. They were still following the ideology they had always followed—the ideology of making as much money as possible—it just required a bit of greenery this time around. Indeed, Holman wrote that it wasn’t only the environmentalists who might end up regretting making the deal—it also seemed against the interests of Texas residents and taxpayers, as well as TXU shareholders.

One wonders, for instance, what the green groups are expecting to receive, indirectly, for their endorsement? It quickly emerged that TXU already had intended to spike six of the planned coal plants. Noticed too was the fact that TXU enjoys considerable market power in Texas. What’s going to stop rates from rising in the future as Texas outstrips the available power supply, especially with heavy restrictions on new coal plants? Good question. And, for TXU shareholders, don’t you get the feeling that the political phalanx behind the deal is meant to deter another bidder from beating what is perhaps, under the circumstances, a lowball offer?

The only flaw that Holman saw with the private equity ploy to dress up as environmentalists was that it was so obviously phony.

Now we’ll find out if these shrewd private equity operators are really any better equipped to deal with a relentlessly more politicized business environment than public companies have shown themselves to be. Once the buzz from Monday’s razzle-dazzle has worn off, don’t be surprised if the answer turns out to be “no.”

Well, maybe Holman underestimated the genius of private equity. Today we learned that a group called Environmental Defense—who are supporters of the private equity buyout—have hired Perella Weinberg Partners to advise them on the deal. When you can convince the environmental groups to start paying investment bank advisory fees, well, that clearly means you really are equipped to deal with a politicized business environment.
So maybe the headline to this item really should be “we’re all clients of investment banks now.”
Update: One the other hand, DealJournal wonders if maybe representing Environmental Defense in the TXU deal is a sign that Perella Weinberg might be getting a little desperate.

Private Equity Says ‘Like Us!’
[Wall Street Journal]
Environmentalists hire banker for role in TXU deal [Reuters]

Perella Weinberg’s Fancy London HQ

perella.jpgThe Times is reporting on boutique investment bank Perella Weinberg’s posh new London address.

NOTHING is too good for Perella Weinberg, the world’s newest investment bank created by Joseph Perella, former vice-chairman of Morgan Stanley, and Peter Weinberg, who used to run Goldman Sachs in Europe. I hear the bank has acquired an impressive new European headquarters.
This, as is the nature of things today, is in Mayfair, handy for all those hedge funds, rather than the City or Canary Wharf. The bank is paying a hefty £1.75 million a year for a 22,000 sq ft office block at 20 Grafton Street, developed by O’Callaghan Properties.

No free lunch [The Times, second item]

Perella Weinberg’s Website Update

perella.jpgAs it turns out, we were smarter than we were lucky. Or something.
The new investment banking boutique Perella Weinberg Partners is not currently using the domain name perellaweinberg.com–if you go there you get a holding page–but the name it was registered under was Chris Slechta. A review of the Perella Weinberg website–PWPartners.com–reveals that Slechta is in fact an employee of the partnership. So the evidence we used to uncover the name of the bank before it was announced really was correct. Yay.
This is the last time we are going to post about this. We promise. Probably.

Perella Weinberg Is A Go

Joseph Perella’s boutique investment bank went live early this morning, issuing a press release officially announcing the formation of Perella Weinberg Partners.
For weeks prior to today’s official launch, the exact name of the new firm and the timing of its launch remained secret. Yesterday DealBreaker speculated that the name might be “Perella Weinberg” after we discovered that the internet domain name PerellaWeinberg.com had been anonymously reserved. DealBook, following the same internet-sleuthing trail, later confirmed the name with a source within the firm.
Oddly, however, this might all have been a matter of luck. It wasn’t hard to figure out that the firm might have the name of it’s founder in its letterhead, and Peter Weinberg, who headed Goldman Sachs European operations, is biggest name among the other bankers Perella recruited. So it wasn’t a stretch to get to “Perella Weinberg.” The reserved domain name seemed to be a piece of evidence confirming this logic.
Only it wasn’t. The new firm is using the website PWPartners.Com. So all that excitement about the reservation of “perellaweinberg.com” seems to have been misplaced. As it turns out, we got it right (more or less, since DealBreaker missed the “Partners” tag) but just based on a happy coincidence. Well, you know what they say. If you can’t be smart, at least be lucky.

And Perella Weinberg It Is

perella.jpgThis morning we reported that the internet domain name PerellaWeinberg.Com had been anonymously reserved, indicating that this might be the name of Joseph Perella’s new investment banking boutique (although we noted it was also possible that a third-party had reserved the name).
This afternoon, DealBook’s Andrew Ross Sorkin has followed up on our internet sleuthing, and is reporting that a source at the new firm has confirmed that Perella Weinberg will in fact be the name.
[More after the jump]

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