The FINANCIAL — Credit Suisse and its strategic partner First NZ Capital intend to form a new business, aiming to provide an expanded integrated offering focused on the small-cap sector in Australia, according to Credit Suisse Group AG.
Subject to regulatory and other approvals, Credit Suisse and First NZ Capital will jointly establish a new offering spanning equities and investment banking coverage, focusing on small-cap companies and institutional investors in this sector.The new entity will bring together the market leadership and global reach of Credit Suisse with the small-cap expertise of its strategic partner, First NZ Capital, according to Credit Suisse Group AG.
First NZ Capital is the broker in New Zealand, with an average 30% market share in NZX trading over the past 12 months. It was named both M&A House of the year and Share broker of the year by the Institute of Financial Professionals New Zealand (Infinz) last year, according to Credit Suisse Group AG.
Credit Suisse Australia CEO Rob Stewart said he was pleased to be expanding the partnership with
First NZ Capital, after the two entities formed a strategic alliance in 2002. He also said the new
business was expected to create opportunities for the Private Bank, as it broadens Credit Suisse’s
footprint and platform in a sector that is highly relevant to entrepreneurs and high-net worth individuals.
“The small-cap sector is extremely important to Credit Suisse and our institutional and private banking clients, therefore we made the decision that this is an area we would invest in and expand our capabilities,” Mr. Stewart said. “We believe our institutional investor clients value this segment highly for the portfolio outperformance it can deliver. In addition, small-cap companies stand to benefit from this depth and breadth of coverage to meet their strategic objectives," he added.
“We are looking forward to addressing the significant potential this market segment offers in a more focused business, while remaining strongly aligned to the Credit Suisse global network,” said Scott St John, First NZ Capital CEO. “After spending time working with the existing team, I believe we have a strong foundation that with additional investment can be further developed to become a leading franchise. We intend to commit targeted resources in order to support our clients, and will carry out selective recruitment in order to build the business in line with their needs,” he added.
The new business will be Chaired by Mr. Stewart and led by Mr. St John, in the role of CEO. Mike
Bassett, currently Credit Suisse Head of Domestic Equities Research Sales, will head the Securities
team, according to Credit Suisse Group AG.
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