THE CORPORATE advisory and broking team of financial services group Brewin Dolphin has bought its way out of the company to set up a new firm.
The asset manager agreed to sell the unit, which sees the departure of 55 professionals, in a deal worth £5m.
The team has now established a joint venture with the financiers that backed the buyout, N+1 – a Spanish financial adviser and asset management group.
The deal will also free Brewin Dolphin from its regulatory capital requirements, as it moves to become a pure investment manager.
Following the transaction, N+1 will hold a 51 per cent stake in the new company, whilst the team will hold 35 per cent. Brewin Dolphin will retain a 14 per cent interest in the company.
The deal is still subject to regulatory approval from the Financial Services Authority.
The new business, to be called N+1 Brewin, will be led by Graeme Summers as managing partner.
Summers, who joined Brewin Dolphin in 1990, formerly headed up the firm’s corporate advisory and broking division.
He said: “It’s exciting times for the team. Brewin Dolphin has been a very good home for us for the past 20 years. There’s been a natural parting of ways, moving of the businesses in different directions
“We’ll be moving towards a partnership with a highly successful international partner that has very complementary skill sets to what from the outset we were trying to achieve in this process.”
WEST HILL CORPORATE FINANCE
BREWIN Dolphin was advised by Edward Williams of West Hill Corporate Finance, a corporate finance advisory business focused on clients in the financial services and funds sectors.
Previously, Williams advised on the £113m sale of Lloyds vehicle Cathedral Capital, as well as a private capital raising for specialist motor insurer Verex. He also worked on a £105m AIM capital raising for the Macau Property Opportunity Fund.
Prior to joining West Hill, Williams was a managing director in HSBC’s Financial Institutions team. He has 15 years corporate finance experience and is a graduate of King’s College, London, where he read Law.
West Hill’s Andrew Galloway also advised on the deal.
Galloway, the former head of financial institutions at HSBC’s investment bank set up West Hill with other bankers in 2003.
He has over 25 years’ corporate finance experience from mergers and aquisitions to equity and debt financing.
Galloway led the formation of HSBC Investment Bank’s Financial Institutions team which was the bank’s largest revenue contributor for a number of years.