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Tudor, Pickering to Combine with Investment Firm Perella Weinberg

Houston-based energy banker Tudor, Pickering, Holt & Co. (TPH) is combining with Perella Weinberg Partners (PWP) to create an investment firm with $12 billion-plus in assets and more than 650 employees worldwide.

Under the PWP financial umbrella, TPH's energy investment firm would continue to operate under its brand and be led by current management, the firms said Monday. TPH's current chairman/CEO, Bobby Tudor, would continue as chairman and join the executive committee at PWP. Tudor, a 20-year executive with Goldman Sachs & Co. before founding Tudor Capital, is to "spearhead the drive to capture opportunities created by the combination of the two firms."

TPH's Maynard Holt, now co-president and co-head of investment banking, would become CEO. Dan Pickering, co-president and head of TPH Asset Management, was named president and chief investment officer of the energy asset management business. TPH CFO Alexandra Pruner is taking over as financial chief at PWP.

Nothing will impact TPH’s Houston-based business going forward, Tudor said during a conference call to discuss the merger. TPH would have a larger footprint and access to more research capabilities, with prowess in areas beyond the energy space.

PWP "has a terrific reputation as a trusted adviser to executives at the world’s leading corporations and a culture of superior client service," Tudor said."We believe our clients and employees will benefit meaningfully from a TPH with broader global reach, expertise in new areas, and greater access to capital. Our longstanding personal and professional relationships with PWP's leadership team give us great confidence that the two firms will be even better together."

Besides the financial wherewithal and expanded global reach of the combined company, TPH also would gain insight from Daniel Yergin, who serves as a senior adviser to PWP on its advisory board. Yergin, who is chairman of IHS CERA, is considered a leading authority on energy, international politics and economics.

“It almost goes without saying that TPH is thrilled to have the opportunity to partner with and learn from Dan as we move forward in this combination,” Tudor said.

PWP CEO Robert K. Steel said the combined firm would be "well-positioned to play a leading role in the evolution of the energy sector. As innovation accelerates and renewables grow, our deep expertise in energy will equip us to help clients navigate this transformation."

TPH was formed in 2006 when Tudor Capital and Pickering Energy Partners merged. Its securities group provides energy market insights and research coverage on about 140 companies in the upstream, midstream, oilfield service, utility, power and coal sectors. The energy securities business, including the "Morning Note" and other research publications, are to continue unchanged.

Combining TPH's energy capabilities and market presence affords "significant opportunities for immediate and long-term growth in service to our clients," Steel said. "We recognize the preeminent role that TPH has built as an energy banker in North America, the respect it has earned in the industry, and its leadership and strong voice in Houston. This combination will enable us together to build further on the great achievements of TPH."

The transaction is expected add nearly $2 billion to PWP's asset management business. With its suite of asset management strategies, TPH is "poised to benefit from recovery in the energy market and well-suited to drive further growth and value for investors," Steel said. "The combination also adds TPH's securities business, renowned for its deep domain research and thought-leadership, which will strengthen our ability to provide industry knowledge. We are excited to work together to better serve our clients."

TPH is to "continue as it is today," and be "fast moving, knowledgeable, creative and specialized. With deep roots in Texas and the energy industry, we are dedicated to furthering TPH’s strong and distinctive commitment to Houston, the energy capital of the world," Steel said.

"Our mission from day one was to drive toward being a preeminent global adviser and clear thought leader in energy," Holt said. "We are particularly excited about PWP's longstanding Middle Eastern presence and relationships, its restructuring business as well as the firm's global footprint. For our clients, 'TPH 2025' can now be delivered in 2017."

The energy banker has advised on more than $175 billion of engagements in the upstream, infrastructure, and oilfield service energy sectors and participated in more than $75 billion of capital markets transactions across those sectors, with a particular focus on initial public offerings. TPH has more than 40 deals under its belt in the Permian Basin totaling close to $40 billion and has participated in 13 Bakken Shale deals totaling about $18 billion. In addition, 31 transactions in Appalachia, the Midcontinent and Eagle Ford Shale combined total $25.2 billion. It also recently established a 10-person office in Calgary.

"In our 11th year, we continue to grow and are having one of the best years for our franchise," said PWP Chairman Joseph P. Perella. "In combination with TPH's strong year and continued outstanding performance, this transaction promises to extend the momentum and positions us well for the years ahead."

The combined advisory business would have expertise in "key industry verticals that are among the most important and strategically active sectors of the global economy," including energy, healthcare, consumer/retail, industrials and financial institutions. The merged firm would have offices in Abu Dhabi, Calgary, Denver, Dubai, Houston, London, New York and San Francisco.

Among other things, PWP in the last 12 months has been an adviser to AT&T on its pending $108.7 billion acquisition of Time Warner, and it has been a lead adviser to Altria on AB Inbev's $120 billion acquisition of SABMiller. PWP also advised on two large energy restructurings -- California Resources Corp.'s $1.4 billion tender offer and capital raise, and Atlas Resource Partners LP's $1.8 billion prepackaged Chapter 11 restructuring.

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