Investment Bank Targets Asians, Hispanics
By RAJIV VYAS
Two former bankers at New York-based Gerard Klauer Mattison & Co. have started their own firm hoping to carve out a niche.
David Takata and Peter Partain, former bankers at Gerard Klauer Mattison’s Los Angeles office, left late last year to start Newport Beach-based Engage Capital Inc. The new firm plans to focus on businesses run by Asians and Hispanics.
“Asian and Hispanic communities account for about 90% of minority-owned businesses in Southern California,” said Takata, Engage’s chief executive.
In Orange County, Hispanic and Asian businesses generate $20 billion in yearly sales, he said.
Prior to his new role, Takata was a senior vice president of research at Gerard Klauer Mattison. He also served as a technology adviser to GKM Venture Partners. Before that, he was a partner at Gruntal & Co., where he led technology research and managed more than $200 million in investment trusts.
Partain, Engage’s cofounder and chief financial officer, heads up investment banking transactions. Prior to his new role, Partain was a vice president at Gerard Klauer. Since 1995, Partain said he has worked on more than $1 billion in deals.
Even if larger banks start honing in on minority-owned businesses, Takata argues Engage will have a cost edge.
“Guys like us can come in and cut big investments banks by 50% and still make a good living,” he said.
Engage formed in May. For now the two founders work from their homes. They hope to open an office in Newport Beach in coming months.
The partners said they are raising capital for expansion, with a target of about half a million dollars. Engage has pledges from two prospective investors who stand to become shareholders, Takata said.
Engage is working to sell an unnamed OC company with $100 million in annual sales, Takata said.
“It is tough to get deals done these days,” he said. “If we can get it done by the end of the year, both us and the client would be happy.”
