Piper Sandler Companies is to acquire Cornerstone Macro, an independent research firm that offers macro research and equity derivatives trading to institutional investors.
Upon closing, Cornerstone Macro will continue providing its research as Piper Sandler & Co’s macro research team.
Founded in 2013, Cornerstone Macro brings 50-plus professionals, including 21 research analysts, to Piper Sandler. Cornerstone Macro produces high quality, thought-leading macro, thematic and quantitative research on global economics, fiscal and tax policy, monetary policy and global asset allocation, portfolio strategy, energy and renewables, and technology. In addition, Cornerstone Macro’s options strategy team provides industry-leading derivative strategy and trading. Cornerstone Macro develops and connects macro insights from around the world, delivering a comprehensive overview of important global trends. The synergy between their teams allows them to generate unique global findings and ‘connect the dots’ for institutional investors to generate alpha. Cornerstone Macro serves clients across the globe with offices in New York and Washington, DC.
Since Cornerstone Macro’s founding eight years ago their research teams have consistently ranked in the top three annually in the Institutional Investor All-America Research Survey.
Co-founder Nancy Lazar, based in New York, NY, leads the economic research team and has been an Institutional Investor-ranked economist for the past two decades, ranking in the top two all the past eight years at Cornerstone Macro.
Co-founders Andy Laperriere, head of US policy research, and Roberto Perli, head of global policy research, both based in Washington, DC, ranked No1 in the Washington Research Team category for five out of six years while at Cornerstone Macro. Andy ranked No. 2 as an individual in the Washington Research category the past two years.
Michael Kantrowitz, head of the portfolio strategy team and based in New York, NY, ranked in the top three in 2020.
“Cornerstone Macro’s world-class research team with over 260 years of combined experience offers our clients market-leading macro insights and analysis of global trends,” says Deb Schoneman, president of Piper Sandler. “They also bring a deep expertise in equity derivatives strategy and trading that will further strengthen our product offerings.”
Nancy Lazar, co-founder and chief global economist of Cornerstone Macro, says: “The partnership with Piper Sandler will complement our existing business and provide our clients with an industry-leading trading desk and one of the largest and most experienced distribution teams on Wall Street.”
Piper Sandler has heavily invested in deep sector expertise across equity research and institutional sales and trading. The firm increased research headcount by 84 per cent over the last two years with the addition of Sandler O’Neill and Cornerstone Macro. The research team currently covers over 1,000 companies and ranks No1 in total names under coverage in the SMID cap category, making Cornerstone Macro an ideal complement to the single stock coverage platform.
“The acquisition of Cornerstone Macro is a significant step toward our goal of building a durable $200 million non-deal equities business with opportunity to grow over the long-term,” says Michael Cox, co-head of global equities at Piper Sandler.
“We are excited to welcome the macro sales specialists to our existing large and fully integrated specialty sales team. The combination represents a significant opportunity to offer clients of both firms a broader range of expertise and product capabilities,” adds Tom O’Kane, co-head of global equities at Piper Sandler.
The transaction is expected to close in the first quarter of 2022 and is subject to customary closing conditions.
Piper Sandler was advised by Faegre Drinker Biddle & Reath LLP. Katten Muchin Rosenman LLP and Berkshire Global Advisors served as advisors to Cornerstone Macro in connection with the transaction.
