Industry Q&A – Marc Cooper & Arik Rashkes Discuss the Recently Launched Financial Institutions Group and Expansion Strategy

by CEO Marc Cooper

This month I sat down to speak with Arik Rashkes who joined the firm as a Partner and Head of the Financial Institutions group in December. Since then, he has been expanding his team, welcoming three new senior bankers so far this year.

Thanks for joining me today, Arik. It is great to see how quickly the Financial Institutions Group has developed and expanded since its launch. Can you share what made you want to join us here at Solomon?

I was very comfortable in my previous post at Houlihan Lokey where I served as Co-Head of US Financial Services and Head of Insurance, but the opportunity at Solomon was one I couldn’t pass up. Being in hyper-growth mode, Solomon is at a size and stage that is a great fit for me. Marc, you speak about this so often and you’re spot on, the firm also has a great culture and people who are brilliant bankers as well as caring and supportive colleagues.

What do you find most compelling about starting the Financial Institutions group?

I’m excited about building something from scratch, which is refreshing and exhilarating. The strong backing from our sister company Natixis creates an even more compelling value proposition.

Can you talk more about your plans for the group?

We plan to build a full-fledged advisory practice serving a variety of companies in the financial services sector. I’ve been doing this for many years, especially in the insurance area, but I’m also familiar with other FIG-related silos. I want to continue advising large companies, such as insurance carriers, and leverage the nimbleness and flexibility of Solomon to cater to a diverse range of clients.

How do you plan to build your team, and what will set your group apart from competitors?

Since launching the group last December, we’ve already made great progress. So far this year, we’ve hired three seasoned senior-level bankers: Juan Guzman joined us last month as a Partner, and Faiz Vahidy and Matthew Cornish came on board in January as Managing Directors.

We all previously worked together at Houlihan Lokey, and they will now collaborate with me to build up our practice. Juan specializes in mortgage services and insurance, as well as the broader real estate services sector. Faiz focuses on insurance distribution companies, and Matt specializes in insurance services and illiquid financial assets. We also have 5 mid-level and junior bankers on our team.

Marc, I’ve really enjoyed working with you and our partners on our game plan, which is to hire more bankers from Wall Street, other banks, and the industry. Our goal is to create a well-rounded team that can serve a wide range of clients. It will take time, as we don’t want to simply fill seats. However, within the next two years, we aim to establish a full-fledged FIG team. Our focus will be on providing top-notch service and execution, with a culture of continued excellence and personal care for clients.

What differentiates your team from what other firms provide?

Our group is like a private jet compared to commercial carriers. We offer extremely personal and high-quality service, ensuring that every engagement is handled with the utmost care and professionalism. This approach will set us apart from larger, less consistent and conscientious teams.

What are your thoughts on the current market environment for your particular sector and its impact on your plans?

I’m very bullish on the amount of M&A activity in the financial institutions sector. Private equity is driving a good number of transactions, especially in the upper middle market space where we excel. While we may not see a flurry of mega deals, there will be plenty of sub-$1 billion deals in various sectors like insurance, asset management, and wealth management.

Can you share more about your previous experience and how it has prepared you for this role?

Certainly, Marc. I bring over 25 years of experience to Solomon, mostly focusing on M&A in the financial services sector. I spent over a decade at Houlihan Lokey, and in my roles as Co-Head of Financial Services and Head of Insurance I advised numerous Fortune 500 and international companies, mid-caps, entrepreneurs, and private equity investors. Prior to that, I worked at Blackstone, Deutsche Bank and Citi and earned an MBA from Columbia Business School.

Any final thoughts?

In the past 3 months, my expectations about the firm’s culture have not only been met but exceeded – from the warm welcome to the ongoing support and camaraderie. I’m energized to have such an important role in building the FIG team while upholding and maintaining the great culture at Solomon.