NEW YORK, August 24, 2020 (Newswire.com) - Roberts & Ryan Investments Inc., one of America's first Service-Disabled Veteran-Owned (SDVOB) FINRA registered broker-dealers, is proud to announce their participation as co-manager in the record-breaking $4 billion special purpose acquisition company (SPAC) offering from Bill Ackman's Pershing Square Tontine Holdings.
For this offering, Mr. Ackman changed the underwriting model by expanding the roles of minority-owned firms and increasing their underwriting fee participation. The lead underwriting banks, Mr. Ackman, and the minority-owned firms worked side by side, leveraging each other's relationships with Ackman's investing acumen, to maximize the coverage of the targeted accounts. The minority-owned firms got a seat at the table and an opportunity to bring value while being mentored by one of the industry's great deal makers and some of the most prestigious bulge bracket underwriters. The minority-owned firms provided Pershing Square with access to their unique relationships, including niche international money managers and family offices.
Minority-owned firms on Wall Street have long participated in the Debt and Equity Capital Markets for new issues and secondaries as co-managers and selling group members. Their participation comes at the direction of the underwriting banks, and the issuing companies themselves, to further their ESG and diversity initiatives.
Traditionally, the economics for minority-owned firms has been 3% of the total fees generated. Often, multiple minority firms are included in each deal, diluting the economic benefit to each firm. With Pershing Square, Mr. Ackman is looking to set an example for companies in their future issuance of securities by increasing the total minority participation to 20% of the economics.
"This year, through our participation in the Mentor-Protégé program and with the support of our mentor Citigroup (CITI), other bulge bracket firms, and corporate issuers, Roberts & Ryan has been growing. We have been a co-manager or selling group member in multiple equity and debt transactions for a variety of companies including CITI, Zoom Info, Warner Music Group, Bank of America, Wells Fargo, and Becton Dickinson. Roberts & Ryan's participation allows us to further our social mission to donate a percentage of our revenue to nonprofit groups that directly assist veterans in the areas of wellness, mental health, and career transition. As a direct result of Bill Ackman's record-breaking SPAC, R&R can continue to do well by doing good, donating $100,000 each to both Boulder Crest & Year Up," says Brian Rathjen, President of Roberts & Ryan.
"We are grateful and honored to partner with Roberts & Ryan, a firm dedicated to service and upholding America's ideals," said John Galante, Managing Director at Year Up, one of the foundations supported by Roberts & Ryan. "Their support will help us continue to create economic opportunity for young adults across the U.S. and reflects Roberts & Ryan's commitment to a diverse, inclusive society."
Mr. Ackman's vision of increasing the economic and functional participation of minority-owned firms will cement their long-term viability in the industry. It will enable minority firms to endure turbulent market conditions if taken up by other issuers.
About Pershing Square Tontine Holdings, Ltd.
Pershing Square Tontine Holdings, Ltd. ("PSTH"), a Delaware corporation, is a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with a private company. PSTH's sponsor is 100% owned by the Pershing Square Capital Management, L.P. ("PSCM") funds.
PSTH believes that its unique structure and willingness to acquire a minority interest in a company will help facilitate the completion of a transaction on attractive terms.
About Roberts and Ryan Investments, Inc.
Roberts & Ryan Investments, Inc. is a Service-Disabled Veteran-Owned (SDVO) broker-dealer with execution capabilities in the capital markets, equities and fixed-income trading. The firm was founded in 1987 by a United States Marine Corps Vietnam combat veteran and Purple Heart recipient.
Roberts & Ryan engages in underwriting and trading of corporate municipal and agency mortgage debt as well as, equity agency trade execution, stock buybacks, and equity underwriting.
The majority of the firm's employees are veterans. The firm is active in donating to charitable foundations that make significant positive impacts in the lives of veterans and their families. Roberts & Ryan will directly support veteran-focused charitable organizations that are best positioned to aid the veteran community.
For more information, contact:
Roberts & Ryan Investments Inc.
Jennifer McDonough, 646-542-0745
Director of Administration
Source: Roberts & Ryan Investments Inc.