Financial markets consultancy Catalyst has scooped up rival Knadel, marking the first deal in a string aimed at doubling the firm’s revenue in just one year.
Catalyst, which is owned by private equity firm Livingbridge, serves names such as JP Morgan, HSBC and a roster of hedge funds. It specialises in advising on clearing, risk and regulation, and has mentored more than 250 senior financial figures.
The firm has pocketed a chunk of further investment from Livingbridge to help fund the deal, City A.M. understands.
“Our clients increasingly require ‘specialism at scale’: high levels of integrated expertise to tackle large, complex programmes of change,” said Catalyst’s chief executive Andrew Middleton.
“This deal will significantly broaden our offer across the full spectrum of financial markets.”
Knadel, which focuses on investment management consultancy, has advised firms including Lloyds Banking Group, Thomas Miller Investment and F&C Management.
Since launching in 2009, the business has worked with more than 120 different clients on more than 400 projects.
Catalyst, which this year celebrates its 24th anniversary, generated revenues of £10.4m for the year ended March 2017.
Livingbridge’s “significant” investment in the firm and plans to double its revenue were a canny move, at a time when regulatory changes such as the second Markets in Financial Instruments Directive (Mifid II) and the General Data Protection Regulation (GDPR) have been causing headaches for businesses.
Global banks have upped their spend on consultants as they try to comply with new rules and rise above the threat posed by new, more nimble competitors.