First Albany Becomes Broadpoint

New York – A few days ago First Albany Company, Inc. accepted a $33 million investment from MatlinPatterson Global Opportunities Partners, giving MatlinPatterson a 61% equity stake in the company. As part of the transaction, First Albany has changed its name to Broadpoint Securities Group.

Pursuant to the deal, former First Albany CEO, Peter McNierney, will become President and COO of Broadpoint Securities and Lee Fensterstock will become Chairman and CEO. To stem potential staff exodus, 19% of the equity has been allocated to the staff of the former First Albany.

Of the $50 million valuation, MatlinPatterson purchased $33 million of the newly issued shares. Broadpoint has a book value of $80 million, compared to First Albany’s $26 million book value. Matlin will have three seats on the Board in addition to Lee Fensterstock. Headquarters have been moved New York from Albany.

Following in the business style of First Albany, Broadpoint Securities Group is an investment bank specializing in the mid and small cap space and providing equity research and equity sales to its customer base. The focus is on companies with market sales of between $25 million to $1.0 billion. Utilizing a general fundamental approach in its analysis, Broadpoint attempts to add-value for institutional clients by delivering investment ideas to clients. This is achieved through a research methodology that integrates quantitative and qualitative research, primary research, and field work, which accesses the knowledge and opinions of industry experts, suppliers and end-users. The firm focuses on consumer, healthcare, technology and clean-tech sectors.