Deals round-up – PRIVATE EQUITY: Collins Stewart MBO nets GBP122 million

CVC Capital Partners and Parallel Ventures were involved in the equity financing on a management buyout of Collins Stewart, the stockbroking subsidiary of independent investment banking group Singer & Friedlander. Singer & Friedlander plans to use the proceeds of the sale to develop its banking and fund management activities. Debt on the transaction was provided by Bank of Scotland who was advised by Ashurst Morris Crisp. Clifford Chance acted for CVC Capital Partners, and SJ Berwin advised the management team at Collins Stewart. Sellers Singer & Friedlander were advised by Cazenove & Co and Nicholson Graham & Jones on legal matters.

The GBP122 million ($193 million) consideration consists of GBP112.5 million in cash and GBP5.5 million in five year non-assignable subordinated loan notes. The balance of approximately GBP4 million will be paid in cash on the determination of the net asset value as at March 31.