D.A. Davidson & Co. likely will move its Los Angeles investment-banking office to Orange County, as it consolidates operations after acquiring McGladrey Capital Markets LLC in Costa Mesa.
The acquisition is expected to double the size of the investment banking arm of Great Falls, Mont.-based D.A. Davidson, which is known as D.A. Davidson Equity Capital Markets and is headquartered in Portland, Ore.
The group manages about $30 billion in assets, said Rory McKinney, managing director of the Los Angeles office.
“We’re likely going to consolidate our Southern California offices into one location in Orange County,” McKinney said. “It makes more sense logistically to move 10 people south versus moving 35 people north.”
McKinney hinted at a possible location in Irvine, near John Wayne Airport. A move is expected sometime in the fourth quarter.
“We’ll be looking to staff all different levels,” McKinney said. “This acquisition has raised a visibility for us in Southern California to selectively look for talent.”
McGladrey specializes in mergers and acquisitions in several sectors, including healthcare, energy services, and consumer products.
“McGladrey was an M&A-only shop,” McKinney said. “They did not have the balance sheet, research and sales capabilities to offer capital-raise for its clients. It’s a good marriage for us.”
McGladrey was an indirect subsidiary of H&R Block Inc. and associated with RSM McGladrey Inc., which was recently acquired by Irvine-based accounting firm McGladrey & Pullen LLP for $610 million.
—Jane Yu
