The underwriter groups New York City and its financing authorities chose last week included the highest number of certified minority- and women-owned business enterprises in city underwriter syndicates according to records dating to 2002, said a spokeswoman for New York City Comptroller John Liu.
"Our vastly broadened outreach found great talent, including MWBEs, and resulted in more competition, greater diversity, and enhanced value for our taxpayers," Liu said in a statement.
MWBE firms chosen included Siebert Brandford Shank & Co. LLC; Lebenthal & Co. LLC; Loop Capital Markets LLC; M.R. Beal & Co.; Ramirez & Co.; Rice Financial Products Co.; Blaylock Robert Van; Caberra Capital Markets LLC; Estrada Hinojosa & Co.; Williams Capital Group LP; and Castle Oak Securities.
As a result of the selection by the city's Office of Management and Budget and Liu's office, MWBEs occupy 25% of total bookrunning slots, up from 18.8% since the last request for proposals in 2009; they also account for 32.3% of total syndicate roles, slightly up from 2009; a service disabled veteran owned and managed enterprise, or SDVE, firm — Drexel Hamilton LLC — was added for the first time; and 11 MWBE firms were selected for syndicate roles, up from nine in 2009.
The selection of underwriting syndicates followed a request-for-proposals process. According to Liu's office, city officials reviewed the RFPs according understanding of the issuers; firm resources and capabilities in the structuring, marketing and underwriting of municipal bonds; performance on issuers' financings; quality of coverage and commitment to the municipal bond marketplace and to the city.
Liu's office said 177 firms received RFPs; 50 firms, including 20 MWBEs, submitted RFPs.
Twenty-seven firms applied for senior manager roles, including nine MWBE firms.