Key Takeaways
- • Houlihan Lokey (NYSE: HLI) appointed Derek Herbert as Managing Director in its Capital Solutions Group, expanding the Equity Capital Solutions team amid growing demand for direct equity financing.
- • Herbert joins from Stifel, where he was Managing Director in the Mergers & Acquisitions Group, and previously worked at Miller Buckfire and Morgan Stanley's Investment Banking Division.
- • Herbert will be based in New York and lead direct equity transactions advising financial sponsors and other investors on acquisitions and leveraged buyouts.
- • The Capital Solutions Group raised capital and advised on more than $42 billion across over 140 transactions in the 12 months ended September 30, 2026, per the firm.
Summary
Houlihan Lokey, Inc. (NYSE: HLI), a global investment bank, has appointed Derek Herbert as Managing Director in its Capital Solutions Group, strengthening its Equity Capital Solutions team as demand for direct equity financing grows. Based in New York, Herbert will focus on leading direct equity transactions for financial sponsors and other investors seeking capital for acquisitions and leveraged buyouts.
Herbert joins from Stifel, where he most recently served as Managing Director in the Mergers & Acquisitions Group. Earlier in his career he held positions at Miller Buckfire, prior to its acquisition by Stifel, and in Morgan Stanley's Investment Banking Division. The firm said his M&A experience, particularly in the consumer sector, will support its efforts to expand its direct equity advisory business.
Anthony Martino, Global Co-Head of Capital Solutions at Houlihan Lokey, said the direct equity market has evolved materially and has experienced remarkable growth over the past several years. Martino said mid-market financial sponsors are increasingly using direct equity financing both to support add-on acquisitions by existing portfolio companies and to establish new investment platforms through leveraged buyouts. The firm is expanding the team to address demand from funded and independent sponsors seeking alternative acquisition financing structures. Direct equity transactions typically involve raising capital to acquire a specific business or asset rather than investing through a traditional pooled private equity fund, and often require M&A-style advisory processes including investor outreach, structuring and execution.
Matt Swain, Global Co-Head of Equity Capital Solutions, said Herbert's M&A background will be valuable as investor interest in direct equity opportunities increases. Herbert said the firm's private capital advisory platform and relationships with alternative capital providers were key factors in his decision to join.
Houlihan Lokey's Capital Solutions Group includes more than 240 professionals across 18 offices in eight countries. During the 12 months ended September 30, 2026, the group raised capital and advised on more than $42 billion across over 140 transactions. The firm's broader advisory services include mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory.
Herbert joins from Stifel, where he most recently served as Managing Director in the Mergers & Acquisitions Group. Earlier in his career he held positions at Miller Buckfire, prior to its acquisition by Stifel, and in Morgan Stanley's Investment Banking Division. The firm said his M&A experience, particularly in the consumer sector, will support its efforts to expand its direct equity advisory business.
Anthony Martino, Global Co-Head of Capital Solutions at Houlihan Lokey, said the direct equity market has evolved materially and has experienced remarkable growth over the past several years. Martino said mid-market financial sponsors are increasingly using direct equity financing both to support add-on acquisitions by existing portfolio companies and to establish new investment platforms through leveraged buyouts. The firm is expanding the team to address demand from funded and independent sponsors seeking alternative acquisition financing structures. Direct equity transactions typically involve raising capital to acquire a specific business or asset rather than investing through a traditional pooled private equity fund, and often require M&A-style advisory processes including investor outreach, structuring and execution.
Matt Swain, Global Co-Head of Equity Capital Solutions, said Herbert's M&A background will be valuable as investor interest in direct equity opportunities increases. Herbert said the firm's private capital advisory platform and relationships with alternative capital providers were key factors in his decision to join.
Houlihan Lokey's Capital Solutions Group includes more than 240 professionals across 18 offices in eight countries. During the 12 months ended September 30, 2026, the group raised capital and advised on more than $42 billion across over 140 transactions. The firm's broader advisory services include mergers and acquisitions, capital solutions, financial restructuring, and financial and valuation advisory.
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