Loop Capital Acquires L.A.-Based FA Gardner, Underwood & Bacon LLC

ALAMEDA, Calif — Loop Capital Markets announced Tuesday that it has acquired Los Angeles-based Gardner, Underwood & ­Bacon LLC, and plans to integrate the financial advisory firm into its investment banking operations.

“This acquisition underscores Loop Capital Markets’ commitment to strategic growth as we continue to expand our presence domestically and internationally,” Loop chief executive Jim Reynolds Jr. said in a statement.

“Loop Capital Markets is a great match because it offers a full-service investment banking platform that will enable us to more fully serve the needs of our clients in California and nationally,” Mark Young, principal at Gardner Underwood, said in a statement.

Reynolds said the acquisition will allow Loop to expend its presence in ­California.

According to Thomson Reuters, the firm was credited as senior manager on two Golden State deals between 2008 and 2010, though it has been more active as a co-manager. Loop ranked 16th among book-runners nationally in 2010, with $4.9 billion in volume.

Gardner, Underwood & Bacon ranked sixth among California financial advisers for 2010, with more than $1.6 billion in volume, and 25th nationally with more than $2.4 billion, according to Thomson Reuters. Since 2002, the firm has served as a financial adviser on more than 250 transactions, totaling over $30 billion.

Loop said GUB will honor all of its financial advisory commitments, but that its principals and staff will transition from financial advisory assignments and become part of Loop’ public finance investment-banking team.

All of Gardner’s principals have extensive prior experience as public finance bankers.

“GUB and its principals bring a highly regarded reputation in municipal finance,” said Alexander Rorke, Loop’s head of public finance.

In addition to public finance, Loop also plans to house part of its corporate finance, taxable and tax-exempt trading, underwriting, and global equity trading in its expanded California offices.

Loop Capital was founded in 1997, and describes itself as the largest minority-owned investment bank and brokerage house in the United States. ­Headquartered in Chicago, the firm has nearly 150 ­professionals in 20 offices around the country.

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