Having only been in venture capital hands since May this year, Collins Stewart is already slated to float on the London Stock Exchange in October, under the guidance of its adviser HSBC.
Collins Stewart was, until earlier this year when it was the subject of a leveraged buyout transaction led by CVC Capital Partners and Parallel Ventures, the stockbroking arm of Singer & Friedlander. In addition to equity from CVC Capital Partners and Parallel Ventures, Bank of Scotland provided senior debt for the transaction.
The company, originally founded in 1991 by four ex-partners of Simon & Coates, has since grown to employ over 200 staff today and extended beyond its core stockbroking function. In addition to the London office its subsidiaries Collins Stewart (CI) Limited and Collins Stewart Asset Management Limited operate from offices in Guernsey, Jersey, and the Isle of Man. There is also have a New York-based subsidiary, Collins Stewart Inc, which provides pan-European research and execution services to Collins Stewart’s US institutional client base.
The venture capital backed management group paid approximately GBP122 million for Collins Stewart’s entire issued share capital in May this year. This GBP122 million cash figure was in addition to GBP5.5 million five-year non-assignable subordinated loan notes. A further GBP4 million was to be paid when the net asset value was finally determined on March 31. The October float is expected to give the business a market cap of GBP250 million.
CVC Capital Partners and Parallel Ventures were advised by Deloitte & Touche Corporate Finance and look legal advice from Ashurst Morris Crisp, Clifford Chance and SJ Berwin. Cazenove & Co advised Collins Stewart.