Key facts
- Houlihan Lokey is acquiring Intrepid Financial Partners.
- The acquisition aims to add scale and expertise in the oil and energy sector.
- Intrepid's team of 34 professionals will join Houlihan Lokey.
- Houlihan Lokey has made 21 acquisitions in the past 15 years.
- Houlihan Lokey advised on 257 M&A transactions in the first half of the year, more than any other investment bank.
- Houlihan Lokey's average M&A fee was $1.7 million, one-seventh of Goldman Sachs' average fee.
Boutique investment banks are increasingly turning to mergers and acquisitions to bolster their scale and compete more effectively with larger, bulge-bracket firms. Houlihan Lokey, a US investment bank, is acquiring Intrepid Financial Partners, a boutique firm focused on oil and energy advisory services, as part of its ongoing strategy to add expertise in growth sectors.
Intrepid is Houlihan Lokey's 21st acquisition in the past 15 years. The strategy involves integrating specialized firms and their key personnel to leverage a larger platform with more product offerings and greater operational freedom. Phil Adams, president of Europe for Houlihan Lokey, stated that there is significant opportunity for continued growth through acquisitions, with many potential targets that could further enhance the business.
Houlihan Lokey CEO Scott Adelson echoed this sentiment, noting a record number of corporate acquisition opportunities in various stages of completion. The firm's acquisition strategy appears to be yielding results, as evidenced by its performance in M&A transactions. In the first half of the year, Houlihan Lokey advised on 257 completed M&A deals, more than any other investment bank, according to LSEG data. While its average fee of $1.7 million is considerably lower than that of Goldman Sachs ($12 million), the volume of deals has contributed to significant revenue.
The acquisition of Intrepid aligns with Houlihan Lokey's strategy of sector focus and global coverage. Intrepid, founded in 2015 by former Barclays bankers Hugh “Skip” McGee and Christopher Winchenbaugh, brings a team of 34 financial professionals. This move is expected to double Houlihan Lokey's oil and gas team to over 70 bankers worldwide, enhancing its capabilities in advising on larger deals within the sector. McGee will join Houlihan Lokey as global chairman of oil and gas banking, and Winchenbaugh will serve as global co-head of oil and gas.