Bob Diamond's Panmure Gordon to merge with Liberum as Rich Ricci takes top job

16 January 2024 , 12:09

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The newly named Panmure Liberum will be led by Rich Ricci as chief executive (Image: PA Archive/PA Images)

Former Barclays boss Bob Diamond's City broker Panmure Gordon is set to merge with rival Liberum, creating the City's largest independent investment bank.

The new firm, named Panmure Liberum, will be led by ex-Barclays executive Rich Ricci and Liberum founder Shane Le Prevost. Rich Ricci, who was hired by Mr Diamond in March 2020, is currently the chief executive of Panmure Gordon.

He had a 19-year stint at Barclays, including as co-chief executive of the lender's investment banking arm. Bob Diamond, who owns Panmure Gordon through his Atlas Merchant Capital vehicle, provided the financial backing for the merger.

He said: "This merger will lift the level and quality of service to mid and small-cap businesses and investors in the UK and beyond." These businesses are the lifeblood of the UK economy and require flexible and tailored solutions to enhance their productivity."

He also expressed his excitement about the prospect of Panmure Liberum raising the bar in the UK middle market. Mr Ricci said: "In Panmure Liberum, we are combining two highly complementary and culturally aligned businesses and creating a new force in UK investment banking with an exciting long-term future."

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The merger comes among ongoing consolidation within stockbroking due to fewer city deals. The slowdown in corporate activity has created the need for cost savings. Last year saw FinnCap and Cenkos merge, forming a group generating over £50 million revenue. Talks for Panmure Gordon to take over FinnCap broke down last year.

Nicknamed the "three musketeers", alongside Jerry del Missier, Mr Diamond and Mr Ricci are known for their role in Barclays' growth, even leading it after the financial crisis. Despite this, there was concern over his tenure as he earned hefty bonuses, leading Lord Mandelson to label him the "unacceptable face of banking" in 2010.

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Lawrence Matheson