Piper Sandler’s Legal/GRC Tech Play: Dominance in Compliance-Driven Markets Signals Buy Opportunity

The Compliance Tech Boom Is Here—And Piper Sandler (PIPR) Is Poised to Lead

In an era of escalating regulatory scrutiny, Piper Sandler Companies (NYSE: PIPR) has quietly positioned itself at the epicenter of a rapidly growing sector: Legal and Governance, Risk, and Compliance (GRC) technology. The firm’s strategic hires, geographic expansion, and sector specialization now create a compelling case for investors to act before the market fully appreciates its undervalued potential.

The Jim Roney Factor: Building a Compliance Tech Powerhouse

At the heart of Piper Sandler’s GRC tech ambitions is Jim Roney, the newly appointed Managing Director leading the Legal/GRC Technology and Services practice. With over six years at Guggenheim Securities, Roney pioneered a similar practice, delivering over $5 billion in transaction value and cultivating deep relationships with tech firms, law firms, and compliance-focused investors. His career—from strategy consulting at Accenture to roles at Moelis & Company and Barclays—equips him to navigate the complex intersection of technology, regulation, and capital markets.

Roney’s mandate is clear: leverage Piper Sandler’s existing tech coverage to dominate advisory fees in a sector projected to grow at a 12% CAGR through 2030 (per Grand View Research). His team’s focus on compliance-driven M&A, IPOs, and fundraising for GRC software vendors positions PIPR to capitalize on a market where companies increasingly prioritize risk mitigation.

Geographic Expansion: Europe as the Next Frontier

While Roney’s Chicago-based team anchors the U.S. effort, Piper Sandler’s European pivot amplifies its global reach. Key hires like Paul Leece—global head of infrastructure with 20 years of cross-border experience—underscore the firm’s ambition to serve clients in regions like the EU, where GDPR and sector-specific regulations are fueling demand for GRC solutions.

The firm’s EU entity, Aviditi Capital Advisors, and its Hong Kong office now serve as hubs for cross-border deals, while CEO Chad Abraham has explicitly flagged Europe as a priority for acquisitions and talent recruitment. This geographic diversification isn’t just about offices—it’s about deepening expertise in markets where compliance is a competitive differentiator.

Synergies with Tech Coverage: A Multiplier Effect

Piper Sandler’s tech team—already covering sectors like SaaS, cybersecurity, and fintech—is now turbocharged by GRC specialization. Clients needing both technology innovation and compliance compliance (e.g., healthcare IT firms, financial services platforms) can access a full-service advisory suite. Co-head Steven Schmidt emphasized Roney’s “deep industry knowledge” will “immediately drive cross-selling opportunities,” a synergy that could supercharge advisory fee growth.

The Market Opportunity: Compliance as a $40B+ Growth Engine

The GRC tech market isn’t just niche—it’s massive and accelerating. Regulatory pressures in finance, healthcare, and data privacy are pushing companies to invest in compliance solutions, creating a $40 billion+ opportunity by 2030. Piper Sandler’s early mover advantage in this space—combined with its ability to advise on both tech innovation and regulatory compliance—gives it a first-mover edge over peers like Jefferies or Evercore, which lack dedicated GRC practices.

Why Buy PIPR Now?

• Undervalued Multiple: At a 12x forward EV/EBITDA (vs. 15x for peers), PIPR is priced for a sector in consolidation, not expansion.
• Catalysts Ahead: The EU’s AI Act, U.S. federal data privacy laws, and global fintech regulation will drive deal flow in 2025–2026.
• Margin Expansion: GRC advisory fees typically carry higher margins than traditional banking services.

Conclusion: A Strategic Buy with Multi-Year Upside

Piper Sandler’s GRC tech pivot isn’t a sideshow—it’s a strategic moonshot. With Roney’s expertise, geographic reach, and synergies with its tech team, PIPR is primed to dominate a $40B+ market. At current valuations, investors get a sector leader at a discount, with catalysts already in motion.

Action to Take:
- Buy PIPR at current levels.
- Set a target of $75–$80/share (20–25% upside from May 2025 prices).
- Watch for: Q3 2025 earnings for GRC advisory revenue metrics and European deal activity.

This isn’t just a bet on Piper Sandler—it’s a bet on the inevitability of compliance-driven growth. The time to act is now.