Towry Law will use a substantial US cash injection to integrate acquisitions

Steve Dinneen
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TOWRY Law has received a substantial cash injection from a US investment firm, it was revealed yesterday.

Asset Management Finance invested an undisclosed sum in the acquisitive UK company. AMF’s funding took the form of mezzanine financing, typically used to finance expansion. But sources close to the company said the money would be used to integrate recent acquisition Edward Jones into its operations.

The source said it was unlikely any further acquisitions would be made in the coming months.

Towry Law has acquired nine financial advisory firms since 2003, the UK-wing of Edward Jones being the latest. The financial services giant now has wealth advisers with around £5bn in assets under management. Independent corporate finance advisory firm Hawkpoint advised on the cash injection.

Andrew Fisher, chief executive officer of Towry Law, said: “We were seeking to broaden our capital base as we continue to expand and grow, without giving up a significant equity position in the firm or sacrificing any control in the firm’s governance.

“AMF’s passive minority investment strategy, specialised asset management sector focus, and reputation made them an ideal partner for us.

“We are very pleased to have them as a strategic investor so we can benefit from their financial flexibility and knowledge of our industry.”

HAWKPOINT helped strike the deal for an undisclosed cash injection from US-based Asset Management Finance to Towry Law. The independent corporate finance advisory firm is active throughout Europe, advising corporate clients, financial institutions, private equity houses and governments. Its advisory services specialise in mergers and acquisitions, capital markets, debt restructuring and strategic advice. It has nearly 100 advisers operating from offices in London and Paris. It has a deal to work in partnership with Collins Stewart. The Icelandic government hired the firm to help reach a settlement between the old and new banks in the wake of the country's banking crisis. It advised on agreements between the state, new banks and creditors of the old banks. Hawkpoint advised Jane Norman earlier this year when the women's fashion chain was taken over by its lenders in a deal to restructure debts of £136m. It also made a strategic review of Davenham ahead of its possible sale. Its specialisation in mid market mergers and acquisition activity and debt restructurings allowed it to perform relatively well through the financial downturn. Hawkpoint paid £20m to buy itself out from control of parent company NatWest in 1999, sparking a recruitment drive.