Rodman & Renshaw Capital Group Inc., continuing its effort to create a middle-market investment bank, has purchased Mabon Securities' investment banking and equity divisions, including its financial institutions team.
Mabon's director of investment banking, Peter Boneparth, will take over that function at Rodman, a highly regarded retail broker based in Chicago that has only a token presence in capital markets and mergers and acquisitions.
Mabon, which underwrote the initial public offering of North American Mortgage Co. and Plaza Home Mortgage, has a small financial institutions research and capital markets team, with a heavy emphasis on mortgage banking.
Rodman, which is owned by the Mexican financial services concern Abaco Casa de Bolsa SA, had no presence in corporate finance until raiding Dakin Securities's staff late last year. Seven former Dakin West Coast bank analysts and investment bankers now work for Rodman.
Mr. Boneparth said combining Rodman's brokerage muscle with Mabon's expertise in corporate finance would be a potent combination.
"Rodman had little presence in the institutional business, so this is a strategic improvement for them, being able to drive a high-quality product like investment banking" in tandem with its existing brokerage system.
Mr. Boneparth said his financial institutions group, which will largely be based in New York, would emphasize securitization and research.
Coming with him to Rodman are three analysts: Gareth Plank, who covers mortgage companies; Andrew Jeffrey, who covers auto finance companies; and Alan Bortel, another financial services expert.
Daniel Rood, a Mabon investment banker based in Chicago who formerly worked for Kemper Securities Inc., plans to concentrate on securitization.
Mabon chose to sell the operations after its Italian parent, Istituto Mobiliare Italiano SpA, decided to eliminate its equity operations. In all, 50 equity and corporate finance personnel will move to Rodman.