DUBLIN STOCKBROKING firm Merrion Capital has joined forces with US investment bank Teneo Capital in a deal in which they are purchasing equal stakes of less than 10 per cent in each other’s businesses.
Teneo Capital is owned by Declan Kelly, the former EU economic envoy to Northern Ireland, Doug Band, an adviser to former US president Bill Clinton and Paul Keary, the former senior managing director of FTI Consulting.
Chief executive of Merrion John Conroy said the deal was part of further moves by the company into corporate finance and fund management and a reduction in the firm’s stockbroking activities.
“We have been moving more into this area over the years. We have certainly felt that stockbroking would not be as kind to us as it has in the past,” he said.
Mr Conroy declined to disclose details on the deal but said it was not a precursor to a takeover. “We are probably more buyers than sellers at this point.”
Merrion said the partnership with Teneo would further strengthen its position in the Irish corporate advisory market and provide an international dimension to its business.
Mr Clinton is chairman of Teneo’s advisory board, of which former British prime minister Tony Blair is also a member.
About 70 per cent of Merrion is owned by staff, including Mr Conroy and executives Shane Nolan, Kevin Kilty and Rose McHugh. The remaining 30 per cent is held by outside investors.
New York investment bank Allen and Company, a long-time investor in the firm, will remain the largest shareholder in Merrion after the transaction with Teneo.
Merrion was restructured last year in a transaction that led to capital being taken out of the business and the departure of shareholders Ray Curran, Enrique Curran and Adrian O’Carroll.
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