The boutique investment bank Moelis & Co. has been the subject of buzz in New York's financial media as the new year begins. It has been reported that the business, which was founded in 2006 by Ken Moelis, is exploring the possibility of filing an initial public offering.
In the volatile world of mergers and acquisitions in which it does business, the bank had its most successful year yet in 2013, with reported revenue of more than $300 million. It was involved in a number of multi-billion-dollar deals. Moelis, who made his reputation on Wall Street as a master deal maker at UBS AG, among other companies, owns the majority of the bank.
This appears to be a good time for Moelis to go public. Last year marked the most IPOs for American-based companies since 2007. Further, one of its leading competitors, Evercore Partners Inc., is seeing its stock price rise. Finally, if the bank goes public, the additional capital would help it "lure talent and expand its business further." If the firm goes public when its last year's revenue is under $1 billion, it can take advantage of the Jumpstart Our Business Startups Act, which lets a company file its IPO documents confidentially.
Moelis is reportedly already working with a law firm on the potential IPO. A strong legal team with experience in IPOs can ensure that all due diligence is done, that there are no SEC compliance or other regulatory issues, and that everything goes as smoothly and confidentially as possible.
Please note that the comments on this blog about transactions are not meant to imply that our firm handled such transactions and/or represented any party in such transaction unless expressly stated by us.
Source: The Wall Street Journal, "Investment Bank Moelis Preparing Potential Stock Offering" Telis Demos and Dana Cimilucca, Jan. 10, 2014