Marcus & Millichap officially announces the purchase of Mission Capital Advisors
Marcus & Millichap (M&M) announced today that it is officially on the verge of acquiring an 18-year-old debt and equity advisory firm Mission capital advisers. The deal is expected to be finalized in the fourth quarter.
At the time, sources said they expected the deal to be reached in the first quarter of 2020, but COVID threw a wrench into the works. Sources told CO in July that talks between the parties began last year and that the deal was essentially a “done deal.”
These sources said the motivation behind the merger was because the two companies discovered synergies between their loan-making and loan-selling businesses and because New York-headquartered Mission was seeking access. to M & M’s local banking network, given M & M’s size and scale – the Company completed 9,726 transactions across the country in 2019, with sales volumes of approximately $ 50 billion.
“Expanding our capabilities in capital markets is a key part of [our] long term growth plan and we are delighted to add the complementary services and track record of Mission Capital to our finance division, Marcus & Millichap Capital Corporation (MMCC) ”, President and CEO of M&M Hessam Nadji said in a statement. “Mission’s loan sales and advisory services will expand our relationships with lenders and our customer service offerings. Internally, their ability to collaborate with our existing finance and sales professionals will be synergistic to our overall business development. The Debt and Equity team’s track record in obtaining financing for larger, more complex transactions and providing equity advice is highly complementary to MMCC’s core mortgage brokerage business.
During its 18 years, Mission had grown to encompass debt and equity placement services as well as loan sales services – both performing and non-performing debt as well as real estate sales, separately – with outposts in New York, Los Angeles and Jupiter, Florida.
M&M said in its announcement that the move will bring “40 capital markets professionals to [M&M] including producers, analysts and support staff with offices in New York, Florida, Texas and California. ” Sources said in July that as part of the merger, the mission director David Tobin would continue to operate the New York-based loan sales platform.
“In exploring the possibility of joining forces with Marcus & Millichap, we have taken into account the exceptional reputation of the company and its dedication to exceptional customer service. We are drawn to the breadth of the company’s platform, its commitment to growth, and like-minded the collaborative culture of the company, ”Tobin said in a statement today. “We look forward to adding value to the Marcus & Millichap team and helping the company grow and diversify its services. “
In September, there were rumors that the merger may have gone wrong or been interrupted, as the CO reported at the time. Over the previous 18 months, Mission had seen a wave of longtime finance professionals leave for new opportunities, which somewhat diluted the strength of its operations, sources said. As a result of the departures, sources said M&M is considering rolling back a merger and subsequently hiring people into Mission’s debt and equity advisory operation – led by the principal. Jordan ray out of LA – separately.
A spokesperson for M&M told CO late last month that he “could neither confirm nor deny” the new development.
“I don’t know what the status of the sale is, but everything that remains of Mission’s financial group is transferred to Marcus & Millichap this week,” a source told CO on condition of anonymity the week of September 7. 21.
Ray said in a statement in connection with the announcement that “the Debt & Equity team is looking forward to joining Marcus & Millichap due to synergies from our respective organizations. We see the value of Marcus & Millichap’s dominance and investment brokerage brand and respect MMCC’s leadership position in the market on the funding side. We look forward to contributing to the growth of the business by bringing a strong team with deep expertise in structured finance.
Nadji added in a statement that M&M is “very pleased to welcome founding partners and seasoned professionals, David Tobin, Joseph Runk, Jordan Ray and Trenton Staley and their entire team to our roster.”