Investec Bank Plc, the UK division of SA’s niche private lender and wealth manager, has acquired a majority stake in Capitalmind, one of continental Europe’s leading M&A and corporate finance advisories.
In a joint statement on Tuesday, the two firms announced they had entered into a deal that will see Investec’s stake in the business increase to about 60%, with Capitalmind’s partners retaining the remaining 40%. Upon completion of the transaction, Capitalmind will trade as Capitalmind Investec.
The deal will see Investec and Capitalmind fully integrate their M&A and corporate finance teams to provide clients with corporate finance advisory and investment banking capabilities across the major developed markets of Europe and North America, as well as emerging markets in Asia and Africa.
“This acquisition is consistent with our European growth strategy, and in particular our commitment to growing our capital light revenue base,” said Ruth Leas, CEO of Investec Bank Plc. “In a single transaction, it provides us with a footprint across the major economies of Western Europe, significantly enhancing our ability to bring international solutions to our clients.”
Investec and Capitalmind first established an international advisory partnership in 2018, with Investec acquiring a 30% interest in the advisory outfit in 2021. The Investec group already has corporate advisory teams based in the UK, India and SA. Capitalmind’s advisory footprint across Western Europe allows Investec to expand its investment banking footprint across that region, particularly in France, Germany and Switzerland as well as the Nordic and Benelux countries of Belgium, Luxembourg and the Netherlands.
Investec and Capitalmind have also had an exclusive partnership in the US since 2020.
The two firms’ advisory divisions have similar areas of focus in that they largely cover business services, consumer, energy, financial services, food and agriculture, healthcare, industrials, infrastructure and the technology, media, and telecom (TMT) sectors. Both Investec and Capitalmind also have active private equity sponsor coverage practices.
In their joint statement, Capitalmind and Investec said in the 24 months to end-March 2023 they had in aggregate advised clients on over 230 transactions with a total value of over €25bn (about R514.3bn). Of these, 150 transactions were in Europe with a total value of €12bn (about R246.9). The two firms also have a combined 129 advisory practitioners based in Europe.
“The transaction will further increase our M&A footprint across several major economies in Europe,” said Marc Ackermann, head of corporate finance, investment banking at Investec SA. “Together with our existing network of international offices and track record of cross-border transaction activity, we look forward to the increased international exposure and value this will unlock for our clients interested in the Western Europe market.”
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