Riverwater Exits Perella Weinberg Amid Challenging Environment for Smaller M&A Advisors
In its Q2 2026 investor letter, Riverwater Partners' Small Cap Strategy disclosed exiting a position in Perella Weinberg (NASDAQ:PWP). The decision came as the firm announced workforce reductions of approximately 10%, signaling ongoing challenges for smaller independent mergers and acquisitions advisors. Despite this move, stock selection in energy, materials, and financials helped offset underperformance from healthcare and consumer discretionary sectors. The strategy continued to emphasize high-quality companies with strong management teams and attractive valuations amid a market favoring higher-beta stocks due to AI investment acceleration and energy disruptions. Riverwater remains cautiously optimistic about opportunities created by current dislocations in the markets, including AI infrastructure enablers and select healthcare innovators.
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