Capital markets firm formed through management buyout

New York-based Madison Williams and Company, an integrated capital markets and advisory firm, has completed a management buyout of the principal capital markets business from Sanders Morris Harris Group. The new firm is privately owned by management, employees, and key institutional investors, including Fletcher International Inc.

“Over the past 25 years, investment banking firms have become increasingly transaction-oriented at their clients’ expense.” said president and CEO William Sprague, the former head of the Capital Markets business of SMH Capital. “As a private company, we can more efficiently focus on the longer-term needs of our clients by providing thoughtful solutions that meet their financial and strategic needs.” 

Madison Williams focuses on the energy sector. The firm has completed more than 30 transactions so far this year. The firm is ranked third in number of co-managed energy equity offerings in 2009, having completed 20 public equity and one public debt offering in the oil and gas sector year-to-date. “We have an excellent energy investment banking team, headed by Sylvia Barnes,” Sprague explained.

Year-to-date energy transactions include: advising Resaca Exploration on its merger with Cano Petroleum Inc., executing two PIPE’s totaling C$262 million for TransAtlantic Petroleum Corp., advising ATP Oil & Gas on a $150 million infrastructure monetization with General Electric, representing US Energy on its drilling venture with Brigham Exploration Co., and providing a number of fairness opinions. Most recently the firm (as SMH Capital) completed a secondary offering of three million common shares for GeoResources as sole book-running lead manager. 

A key component of Madison Williams’ growth strategy is the development of a top-notch research team. The firm currently covers the energy, health care, and industrial sectors, and the research team is co-led by Michael Bodino and Karen Kane.

Madison Williams recently hired Stephen Nash to head up the firm’s expansion into targeted non-US based businesses through its OTCQX Group.

Sanders Morris Harris Group retains a minority stake in Madison Williams. In addition, the firm will distribute select retail-oriented capital market products in partnership with Sanders Morris Harris Group, which has $10.6 billion in assets under management. Madison Williams has established its own institutional equity business and currently has 11 institutional salespeople.