In order to finance its growth plans, Kepler Capital Markets (“KCM”) is increasing its capital by € 57 million via the entry of four investors who will hold a minority stake of 49.9% in the group. The balance will continue to be held by the employees and managers of KCM.
The entry of BlackFin Capital Partners, an investment fund based in Paris, la Caisse des Dépôts, the investment bank Gruppo Banca Leonardo and Crédit Mutuel Arkéa, will raise shareholder equity to over € 90 million on completion of the deal.
The new shareholder structure reinforces the company’s independence over the long term. KCM is the leading and only truly independent European financial services company specialising in Equity Brokerage, Fixed Income, Derivatives (equity and emerging markets), Corporate Finance and Asset Management Advisory. KCM has no conflicts of interest with its clients and in particular it does not engage in proprietary trading.
The group believes that this conflict-free model is very much in line with the new international regulations and with client expectations.
In December 2008 KCM conducted an MBO, and followed this with a successful restructuring of the group. The management now intends to capitalise on the excellent recognition of the KCM brand in the markets by embarking on an ambitious development programme in conjunction with these leading industrial and financial partners. For the new partners, it is an opportunity to access the expertise, client base and strong distribution network that KCM brings. They will participate in the continued growth of a business which already counts 1500 clients serviced from 9 offices in Europe and the United States.
The first expansionary move which takes place thanks to the capital increase is the pooling of the equity brokerage business of Gruppo Banca Leonardo in Italy with KCM’s existing brokerage activity in Milan. The plan is to create the leading broker in Italy which will also have unrivalled contacts to Italian institutions for the sale of KCM’s Pan-European equity product. Moreover, GBL, which under the leadership of Gerardo Braggiotti, has become one of the leading Corporate Finance houses in Europe, will have a cooperation agreement with KCM in Corporate Finance and Equity & Debt Capital Markets.
Laurent Quirin, CEO and founder of Kepler Capital Markets in 1997, stated: ‘Kepler is already the leading independent broker in Europe. It was important for us to preserve our independent and conflict-free business model while bringing on board four such respected partners. The capital increase will provide the opportunity to make synergistic acquisitions which will help us to grow the company. Our new industrial partners will participate in this development through a close collaboration with our activities, notably in Corporate Finance. We look forward to a mutually beneficial relationship with our new investors and business partners’.
Laurent Bouyoux, President of BlackFin Capital Partners, commented: ‘BlackFin is delighted to become a key partner with the management team at Kepler. This experienced and strong team has shown an impressive ability to successfully execute projects in a highly competitive environment by leveraging Kepler’s unique European franchise. I see great opportunities to grow this franchise in the near future, and the new resources we bring will allow Kepler to seize these opportunities either via organic growth or through targeted acquisitions’.
The entry of new shareholders into KCM’s capital is subject to regulatory approval.
About Kepler Capital Markets
Created in 1997, Kepler Capital Markets ("KCM") is a leading, independent European financial services company. Prior to today’s announcement, the firm was 100% owned by employees and management following a management-led buy-out in December, 2008. The firm consists of 330 employees. KCM is active in equity research and brokerage, fixed income, derivatives, asset management advisory and corporate finance. KCM has built a reputation for the quality and independence of its research and intermediation via its multi-local platform in Amsterdam, Frankfurt, Geneva, London, Madrid, Milan, Paris, Zurich and New York.
For further details, please go to: www.keplercapitalmarkets.com
Media contacts:
Robert Buller, Media spokesman, Kepler Capital Markets – tel. +33 (0) 1 53 65 35 79
robert.buller@keplercm.com
Florence Daumal, Oskar Partners – tel. +33 (0) 6 08 33 14 23
florence.daumal@oskarpartners.com