Natixis has revealed plans to expand its M&A advisory footprint through investments in Fenchurch Advisory Partners in the UK, Vermilion Partners in China, and Clipperton in France.
Following the acquisitions of Leonardo & Co France and 360 Corporate in 2015, and of PJ SOLOMON in New York in 2016, these transactions enable Natixis to further expand its global services in the areas of financial services, China M&A and technology, respectively.
Natixis has entered into an agreement to make a 51% strategic investment in Fenchurch, a majority stake investment in Vermilion Partners and a minority stake investment in Clipperton, subject to regulatory approval.
Malik Karim, Executive Chairman of Fenchurch, which will continue to be managed by the current partners, said: “This strategic partnership with Natixis enables our proposition to be even more aligned to support the increasingly complex needs of our clients whose businesses and strategic aspirations develop in an increasingly international context.
“Through their continuing significant ownership interest in the firm, the Partners at Fenchurch are making a long-term commitment to developing the firm as a leading independent corporate advisor to financial institutions combining deep sector expertise and first class execution capabilities.”
Vermilion Partners advises prominent multinational and Chinese private and state-owned companies on both inbound and outbound M&A transactions.
The firm will continue to be managed by the current team upon completion of the transaction.
Peter Batey, Chairman of Vermilion Partners, commented: “Our business is built on our commitment to provide clients with high-quality advice.
“By delivering the option of Natixis’ global footprint and financing capabilities we will enhance our offering to both Chinese and international clients. We are delighted to be partnering with an institution that is committed to China for the long-term.”
Natixis plans to invest a minority stake in Clipperton through its subsidiary Natixis Partners: Natixis Partners and Clipperton will collaborate to further assist entrepreneurs, PE funds and corporates in their digital developments globally with the objective to establish a top-tier Corporate Finance advisory offering in the Tech field.
Marc Vincent, member of Natixis’ Senior Management Committee, Global Head of Corporate & Investment Banking, said the strategic investments are “a key milestone in the implementation of the New Dimension plan and in the development of Natixis.
“Our unique multi-affiliate M&A advisory model has proved its worth, allowing us to expand our advisory capabilities by combining with firms with very specific areas of expertise.
“The acquisition of key expertise in Financial Services, China and European Tech is complementary to our existing franchise and will strongly enhance our strategic dialogue with clients.”
Natixes said the combined impact of the three investments on its CET1 ratio is estimated at around 8bps.
Upon completion of these investments, the Natixis global M&A franchise will boast a network of six partner boutiques; Natixis Partners, Natixis Partners España, PJ SOLOMON, Fenchurch Advisory Partners, Vermilion Partners and Clipperton.