BlueGem Capital Partners, a spin-out of Merrill Lynch Global Private Equity, has agreed to invest 17.3 million (€19.7 million) in troubled investment bank Panmure Gordon.
The placing will significantly strengthen the bank’s balance sheet. Including the net proceeds of the placing, Panmure Gordon will have regulatory assets of over 40 million, representing over three times its required regulatory capital, according to a statement.
“BlueGem’s investment in Panmure Gordon signals its firm belief in the company’s brand, reputation, management and 130 year heritage, as well as its attractive business model,” says Marco Capello, founder of BlueGem. “The industry has very interesting prospects, as well as an abundance of available, talented professionals. With its robust financial position and strong client list, Panmure Gordon is extremely well positioned to take advantage of these opportunities. As a shareholder, BlueGem is keen to reinforce Panmure Gordon’s prospects with substantial capital and access to our network of industry expertise. We look forward to supporting the firm’s management as it takes the company to the next stage of its development.”
BlueGem is buying 72 million new shares in the bank at 24 pence per share and will own approximately 40.3% of Panmure Gordon’s enlarged share capital.
This marks BlueGem’s fourth investment and its first in the financial services sector.
BlueGem, led by Capello, a former managing director of Merrill Lynch Global Private Equity, is a London-based private equity firm formed at the end of 2006. BlueGem invests in mid-market companies mainly in the UK and in Italy. The firm has capital commitments of over €200 million and targets companies with an enterprise value up to €200 million.
D.C.