Chapdelaine, a municipal bond broker's broker, has agreed to sell controlling interest to PFH Partnership, an affiliate of Primus Financial.
PFH Partnership will also provide or arrange a substantial capital facility for the purpose of funding anticipated growth of the business. At closing, Chapdelaine will have a book value of approximately $100m.
In early 2009, the firm launched the Chapdelaine Credit Partners division after having assembled a talented team of credit, sales and trading professionals from global financial institutions. Currently, the firm has approximately 200 employs in the inter-dealer broker business and in sales, research analysis and trading in the Chapdelaine Credit Partners division.
Upon completion of the transaction, employees of Chapdelaine will own a significant equity stake. However, the financial terms of the deal were not disclosed.
Geoffrey Coley, CEO of Chapdelaine, said: “Upon regulatory approval, we intend to deploy capital to further enable client facilitation. This important capital infusion will allow us to move forward with our objectives of widening our geographic footprint and adding top industry talent to enhance our client service and execution capabilities.”
Robert Morse, co-CEO of Primus Financial, said: “With the addition of significant capital, Chapdelaine is well positioned to grow its talent pool, expand its leadership position and continue the sound execution of its business plan.”
Simpson Thacher & Bartlett acted as legal counsel for PFH Partnership and Primus Financial. Sullivan & Cromwell acted as legal counsel for Chapdelaine for this transaction.
The transaction is anticipated to close later this year after receipt of regulatory approval.