Investment bank Rothschild & Co has acquired a minority stake in the UK-based equity research firm Redburn.
Image: Rothschild acquires stake in Redburn. Photo: Courtesy of rawpixel/Pixabay.
Established in 2003, Redburn is an independent European equity research firm, offering agency execution services.
Rothschild & Co managing partner Robert Leitão said: “Through our investment, Redburn will be able to expand both research coverage of new companies and the geographical depth of its distribution, whilst maintaining its independence.”
Rothschild’s investment will allow Redburn to expand its services to clients and provide an opportunity for greater employee equity participation.
The partnership between Rothschild and Redburn could enhance industrial and market insights available to their respective client groups, Rothschild noted.
Rothschild & Co partner and equity and investor advisory chairman and Redburn incoming chairman Richard Wyatt said: “Redburn has established a market-leading position at a time when equity research providers have experienced significant dislocation following the introduction of MiFID2.
“This dislocation has led to a general contraction in the depth and quality of research coverage. We want to help Redburn capitalise on the opportunities this presents.”
Redburn senior partner Jeremy Evans said: “This exciting strategic partnership, with one of the leading firms in financial services, will provide Redburn with the financial firepower and support to grow its franchise in new client markets, and to build on its position as the leading independent player in European equities.”
In October 2018, Rothschild agreed to sell its worldwide wealth planning and trust services business.
The deal was led by one of Rothschild’s senior executives Richard Martin. He is responsible for overseeing the trust business will be supported by a senior management team from within Rothschild Trust.
Rothschild said that the deal was in-line with its strategic decision to focus on its core wealth management and private banking business.
When the transaction was announced, Martin said: “In today’s world of increasing complexity and internationalisation, our clients’ needs for first class wealth planning, structuring and administration are greater than ever before. As an independent firm, my colleagues and I are committed to bringing the same long-term perspective as they have come to expect from us.
“We will continue to work closely with Rothschild & Co, providing a seamless service to our existing clients and with the intermediary community to address the needs of successful international families everywhere.”