Investec bank plc bought a majority share in European adviser Capitalmind Group. This is the latest deal in a boutique company amid the worst mergers-and-acquisitions slump for a decade.
According to a Wednesday statement, the subsidiary of Investec whose shares trade in London and Johannesburg will increase its share in Capitalmind from 30% to approximately 60%. It had acquired that stake about two years prior. The financial terms of the transaction were not disclosed.
In an interview, Ruth Leas, CEO of Investec Bank said that the mid-market is becoming increasingly international. This requires a focus on global integration. Capitalmind has more than 90 employees and seven offices across Europe, including France and Germany.
Leas responded on Wednesday, when asked if the bank would consider any additional acquisitions. The company is “well placed to take advantage of opportunities that might present themselves.”
In recent months, a number of big lenders announced deals with smaller investment banks as a result of the sharp decline in global M&A activity. In the City of London, the most notable of these deals was Deutsche Bank AG acquiring Numis Corp. – one of the most well-known UK boutiques.
Consolidation has also occurred in adjacent industries. In April, Rathbones Group Plc purchased Investec UK’s wealth management business for £839 millions ($1 billion).