Moelis & Company, an investment bank, has expanded its equities business in Australia with the acquisition of Sydney-based stock broker Foresight Securities, an institutional stock broking business that specializes in research, sales and trading of Australian small-cap and mid-cap stocks.
Expected to build Moelis’ Australian equities business launched in March, in addition to expanding sales and trading, the acquisition also allows Moelis to provide clients with current and historical research coverage of over 90 small-cap and mid-cap Australian companies.
Through the acquisition, Moelis will become a licensed trading participant of the Australian Stock Exchange (ASX) with an operating Australian financial services license.
Moelis in Australia is building an equities business focused on providing research, research sales, agency trading, and equity capital markets offerings to an institutional client base. The firm plans on developing a differentiated thematic research product, focusing on investment and trading ideas and recommendations.
Recently, Moelis has hired several executives as part of building equities business in Australia. John Garrett will join the firm as managing director and head of hedge fund sales and will be responsible for Moelis’ hedge fund servicing business. Mr Garrett was formerly head of hedge fund sales at UBS Investment Bank.
John Farthing, from Providus Capital and UBS Investment Bank, will also join Moelis & Company’s hedge fund servicing business. Rob Farrington has joined the firm as a managing director and head of sales trading. Mr Farrington was formerly the head of sales trading at Credit Suisse.
David Iron will join the firm from RBS to add resources in trading and execution for the firm’s clients. Troy Derwin will join the firm to spearhead the research sales offering. Mr Derwin joins from Credit Suisse and brings experience in general equity and listed REITs research sales.
John Steinthal, head of equities at Moelis & Company in Australia, said: “We are thrilled that the acquisition of Foresight Securities will allow us to accelerate our previously announced plan to grow our small-cap and mid-cap equities effort as well as our plan to become an ASX trading participant.
“The team at Foresight has built an impressive small-cap and mid-cap specialist equities business and we are excited about the integrated product platform we will be able to provide our corporate and institutional clients across this important market segment.”
Ian McKenzie, principal of Foresight Securities, said: “The Foresight team is very excited to join Moelis & Company. Becoming part of a high quality, fast growing equities and investment banking business will allow us to further develop our equities product capabilities across our client base. Access to the global investment banking expertise of the firm will be invaluable for the corporate needs of our clients.”