International investment bank Investec has upped its stake in Capitalmind to now hold a majority share, as the firm aims to expand its M&A advisory business in Western Europe.
Headquartered both in South Africa and the United Kingdom, Investec (number of staff: 8,700) offers investment banking and wealth management services to clients in multiple countries.
In 2018, Investec purchased a 30% in Capitalmind, providing the group with access to a team of some 50 dealmakers in Western Europe. Fast forward five years, and Capitalmind has grown to a team of 90 professionals across seven offices in the Netherlands, France, Germany, Denmark and Switzerland.
“We have worked closely with Capitalmind for over five years to build our cross-border businesses together, and we share an entrepreneurial DNA and similar values, being focused on providing service excellence to growth-orientated companies,” said Charles Barlow, Head of Strategy Execution at Investec Bank.
“Combining our practices that operate across the major economies of Continental Europe will allow us to accelerate the growth of not only our advisory business, but also our broader range of client solutions.”
Following the deal, Investec holds a stake of approximately 60% in Capitalmind, with Capitalmind’s partners retaining the remaining 40%. Together, Capitalmind and Investec now have around 130 M&A consultants based in Europe.
From a track record perspective, over the past 24 months, Capitalmind and Investec have advised clients on 150 transactions in Europe with a total value of €12 billion, with a focus on the mid-market segment.
“This transaction gives us a huge opportunity to expand our M&A business in Western Europe,” said Jonathan Arrowsmith, Head of M&A at Investec Bank. “It’s critical that we are able to bring together buyers and sellers of businesses from these major economies under one banner, and this transaction accelerates our capability in this respect.”
Meanwhile, outside of Europe, Investec also has teams in India and South Africa. The company serves the US market through an exclusive partnership with Regions Securities (and subsidiaries BlackArch and Clearsight).
Commenting on the joining of forces, the three Managing Partners of Capitalmind – Ervin Schellenberg, Michel Degryck and Jan Willem Jonkman – said: “We are delighted to be joining Investec.”
“The mid-market investment banking business has become ever more deeply international, and M&A advisory businesses therefore need to be increasingly globally integrated, and sector focused in order to develop and maintain a deep understanding of their clients’ businesses and needs, which in turn requires these teams to collaborate seamlessly under one strategy.”
