Investec snaps up Capitalmind as investment bank consolidation accelerates
has snapped up a majority stake in boutique dealmaking firm Capitalmind today as a consolidation of smaller investment banks accelerates amid a deals drought.
The London and South African-based bank said today it had doubled its stake in the smaller firm and would now merge its dealmaking and corporate finance teams “under one common umbrella”.
The tie-up would create a “leading provider of M&A advice in Europe” with 129 dealmakers now operating as one team, Investec said in a statement.
“This acquisition is consistent with our European growth strategy, and in particular our commitment to growing our capital light revenue base,” said Ruth Leas, chief of Investec Bank.
“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 first established an “international advisory partnership” with Capitalmind in 2018 before it then bought a 30 per cent stake in the firm in 2021. Over the two years to the end of March, the two firms have cumulatively advised clients globally on over 230 deals with a total value of over €25bn.
Capitalmind bosses said today the mid-market investment banking business has become more “deeply international” and M&A advisory firms “need to be increasingly globally integrated”.
The tie-up marks the latest in a trend of consolidation of smaller investment banks in the UK and abroad as smaller investment banks are rocked by a deals slowdown and an M&A drought.
Cenkos and Finncap in the UK were among the mid-market investment banks to consolidate this year in a merger, while investment bank Numis was snapped up by Deutsche Bank last month.