Perella Weinberg in talks to go public via SPAC

First reported by Bloomberg, the boutique investment bank, founded in 2006, is set to go public via an unidentified SPAC (special purpose acquisition company) merger. The deal will supposedly value the firm at $1bn and is expected to list as early as the first quarter of 2021. If the deal goes through, PWP will join the long and growing list of companies that have shunned the traditional IPO route this year in favour of accessing public markets via SPACs.

This comes after a two-year pursuit to list via a traditional IPO that had been upended by unfavourable market conditions. Financial Times reported that in 2018, PWP hired J.P. Morgan and Goldman Sachs to lead its offering and made key leadership changes in preparation for the listing. This coincides with Perella Weinberg's new phase of expansion, which includes the separation of its asset management business to focus on dealmaking, as well as expanding internationally.

Perella Weinberg Partners would be joining other boutiques that have already gone public, including rivals Evercore, Greenhill & Co, and, most recently, Moelis & Co.

While it has been a bumpy year for boutique investment bank stocks amid the impact of the pandemic, which threatened to derail the global M&A market, the listing plan comes as M&A activity has rebounded substantially and surged in recent weeks. So far, Q4 2020 has been the 3rd strongest quarter in two decades for M&A. According to data from Refinitiv, since the start of October $612bn of deals have been agreed, up from $461bn during the same period in 2019 and $491bn in 2018.

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