By Milana Vinn and Amy-Jo Crowley
NEW YORK, June 15 (Reuters) – Tech bankers Brendan Ryan and Jon Steele are moving to merchant bank Berenson & Co., sources said, to oversee a shift into M&A advisory in a bid to help the firm win more technology deals and private-market opportunities.
Ryan and Steele have agreed to acquire a 50% stake in New York-based Berenson and are expected to officially join in August, said three sources who requested anonymity because the matter is private. The pair are expected to co-lead the firm alongside founder Jeffrey Berenson and help expand its technology advisory franchise while continuing to invest directly alongside clients and sponsors.
The men currently serve as global co-heads of technology and services investment banking at Raymond James Financial.
Raymond James and Berenson did not respond to Reuters’ requests for comment.
More boutique investment banks are seeking to diversify beyond traditional advisory work by pairing M&A services with merchant banking and principal investing. The model has gained popularity in recent years as firms look for new revenue streams amid volatile dealmaking activity and increasing competition for mandates.
Berenson has built a franchise that combines advisory work with principal investing. Fintech-focused advisory firm FT Partners and Michael Dell-backed merchant bank BDT & MSD Partners also combine advisory services with investments in private companies and deal-related opportunities.
Berenson recently advised Getty Images on its $3.7 billion merger-of-equals with Shutterstock, represented Genstar Capital and Insight Partners in their acquisition of Vector Solutions and advised Aalyria on a $100 million Series B financing that valued the company at $1.3 billion.
Through its affiliated investment arm, Berenson Capital, the firm has backed companies including Interactive Digital Solutions, a provider of video collaboration and telehealth technology, Octane Lending, a technology-enabled powersports financing platform, and wealth management software company Skience.
The addition of Ryan and Steele is expected to bolster Berenson’s footprint across software, fintech, internet and technology-enabled services, sectors where the two bankers have advised companies and financial sponsors on mergers, acquisitions and capital raises for more than two decades.
The transaction also underscores the growing appeal of independent advisory platforms for senior dealmakers seeking greater ownership and flexibility than traditional Wall Street banks typically offer. One of the sources said Berenson’s combination of advisory work and principal investing appealed to Ryan and Steele because it offered the opportunity to advise entrepreneurs and private equity firms while also investing alongside them.
Ryan and Steele have been two of Raymond James’ most senior technology bankers, helping build the firm’s technology franchise and advising clients across software, internet, fintech and technology-enabled services.
(Reporting by Milana Vinn in New York and Amy-Jo Crowley in London; editing by Colin Barr)
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