JEGI CLARITY Merges with Leonis Partners
066 - Industry Insight IB (FIG & FS)
Poor Performance for the Financials Sector
The financial institutions and services sector performed poorly over the past seven trading days, declining by 4.40%. This underperformed the broader market, as the S&P 500 declined 3.10% in the same period. Companies within the sector, especially commercial banks, also struggled:
Bank of America: ↓ 6.23%
JP Morgan: ↓ 7.95%
Citigroup: ↓ 5.82%
Several macroeconomic and sector-specific factors contributed to this poor performance. The decline in financial stocks has been part of a larger market selloff due to declining investor confidence. This selloff began in February with technology stocks and has since led to declining sentiment across most sectors.
A major driver of financial stock declines has been uncertainty regarding Trump’s tariff policies. On March 4th, Trump implemented 25% tariffs against Mexico and Canada, alongside an additional 10% tariff on China. In response, these nations imposed retaliatory tariffs, escalating tensions and increasing uncertainty about the policy’s direction, duration, and outcome.
Additionally, recent economic data has shown signs of a cooling labor market, with unemployment ticking up slightly. Consumer expenditure data indicates a drop in spending, driven by lower consumer confidence amid policy uncertainty. These macroeconomic factors have negatively impacted the overall market and, subsequently, the financial sector.
Sector-Specific Challenges
Several industry-specific factors have also influenced the financial sector's performance:
Economic downturn risks → Decreasing loan demand and narrowing profit margins
Potential economic recession → Increased market volatility
High interest rates → Pressure on net interest margins
Regulatory uncertainty → Concerns over a potential government shutdown (March 14th) and further layoffs by DOGE
Due to these macroeconomic and sector-specific factors, the financial sector has experienced a significant decline, underperforming the broader market.
JEGI CLARITY Merges with Leonis Partners
On March 10th, 2025, JEGI Clarity, an M&A advisory firm, and Leonis Partners, another advisory firm, announced a merger agreement. The combined entity will be known as JEGI CLARITY LEONIS (JCL).
Financial Terms: Not yet disclosed, but structured as an equity swap
Regulatory Approvals: Pending from FINRA and the FCA
Expected Closing Date: Q2 or Q3 2025
The combined firm closed 35 transactions in 2024, nearing $5 billion in deal volume. It will be headquartered in New York and London, with Robert Koven (Leonis Partners) and Scott Mozarsky (JEGI CLARITY) serving as Co-CEOs in North America.
Strategic Objective
This merger aims to expand sector coverage and global reach by combining:
JEGI CLARITY’s expertise in media and marketing
Leonis Partners’ strength in software and fintech
Buyer & Seller Overview
JEGI CLARITY (Buyer)
An M&A advisory firm specializing in media, marketing, information, and legal sectors
Completed 800+ transactions globally
Offers services in M&A advisory, fairness opinions, valuations, and equity/debt fundraising
Leonis Partners (Seller)
Specializes in software, fintech, and technology transactions
Provides services in M&A, capital raising, fairness/valuation opinions, and special situations
Known for a results-driven approach
Investment Banking Implications
This merger has significant implications for the investment banking sector:
Synergies: The combination of JEGI CLARITY’s media/marketing focus and Leonis’s software/fintech expertise strengthens sector coverage.
Competitive Positioning: JCL now has a broader service offering, increasing its deal-making potential and M&A advisory competitiveness.
Industry Trends: This move may encourage other advisory firms to pursue M&A, reshaping competition in the space.
With its expanded services and expertise, JCL is well-positioned to capitalize on the evolving M&A landscape and solidify its market presence.
