Cortview Capital Securities, a bond broker-dealer founded downtown in September 2010, inked a deal last week to be acquired by Stamford, Conn.-based Pierpont Securities. The deal was announced in July but had to receive regulatory approval.
The two firms will continue to operate with separate names until the first quarter of 2013, when they will merge into one, according to a release last week from the companies. The Cortview brand will disappear, as the combined company will retain the Pierpont Securities name.
The companies initially said in July that the combined firm would be known as Pierpont-Cortview Securities.
Details were not released on how the deal might affect Cortview’s Richmond operations.
The combined company will be headquartered in Stamford and will have 150 employees at 11 offices, many of whom come over with Cortview.
Cortview was founded by four veterans of the financial industry, including Richmonder Ted Luse, who left BB&T Capital Markets to launch the firm. Luse was the only local of the founders.
Cortview grew quickly during its two-year existence with the help of cash from its private equity backer, New York-based Warburg Pincus.
By May of this year, Cortview had almost 100 employees in nine cities, including at its 8,000-square-foot headquarters on the 11th floor of Two James Center in downtown Richmond.
In May, it added 24 employees at its offices in New York, Memphis, Boca Raton, Fla., Chicago, Los Angeles and Salt Lake City.
The growth was fueled by $125 million from Warburg that Cortview was able to tap in stages. SEC filings show that Cortview had accessed about $80 million of that capital as of May.
Pierpont chief executive Mark Werner will be CEO of the new firm. The company said in its release that it plans to hire an additional 20 to 25 employees by the end of the first quarter.
Founding Cortview chief executive Michael Lacovara left the company this year for investment banking firm LionQuest Holdings.
Pierpont, founded in 2009, also has been funded by outside investors: Stone Point Capital LLC and General Atlantic LLC.
Stone Point and General Atlantic will remain investors in the combined entity once the transaction is complete, according to a release.