A Sandler O'Neill Founder Starts Bank Advisory Firm

M&A

Strong Early Returns from Dealmakers' Deal

When it agreed to be sold to Stifel last year, KBW was painted as a victim of weak bank M&A and the transformation of investment banking. Things are looking up now as the combined company ranked as the top advisor in four of six U.S. regions at midyear.

By Robert Barba

September 1
M&A

Bank M&A Fees Have Skyrocketed in the Past Decade

The rates commercial bankers pay for M&A advice were on the rise long before investment banks began to consolidate. Their future direction depends on the pace of bank deals.

By Robert Barba

February 15

A group that includes the co-founder of Sandler O'Neill & Partners has started a new investment bank aimed at community and regional banks.

Kimberlite Advisors will advise community banks, real estate companies and investors, the New York firm said in a release issued Tuesday. Thomas O'Neill, founder of Sandler O'Neill, will serve as co-chief executive with Michael Coster, a former Lazard Frères managing director.

There has been a lot of upheaval in investment banking in recent months. Stifel Financial earlier this year bought Keefe, Bruyette & Woods for $575 million. That combination created the largest U.S. investment bank advisor to commercial banks, as measured by M&A deal value. Kimberlite starts in an environment where investment banks have enjoyed an increase in fee income.

Other principals involved with Kimberlite include Lewis Ranieri, a former Salomon Brothers vice chairman who is considered a mortgage-finance pioneer; Alan Pomerantz, a lawyer who headed the real estate practice group at Weil, Gotshal & Manges; and Kenneth Hamlet, a former president and CEO of Holiday Inn.

Andy Peters

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