Raymond James Financial Inc. said it has reached an agreement to acquire Cebile Capital, which will deepen its relationship with the private equity community, according to a Raymond James news release.
Financial terms of the agreement were not disclosed, but the release said the transaction is subject to certain regulatory and other closing conditions.
Cebile Capital, a private fund placement agent and secondary market advisor to private equity based in London and New York City, will operate as a new business unit within investment banking and will be led by founder Sunaina Sinha Haldea, the release said. It noted that the division will continue to serve leading middle-market private equity and private capital firms and their limited partners in the U.S., Europe and elsewhere around the world.
“Our similar cultures, commitment to client-first values and shared focus on the middle market make this an ideal opportunity to add an additional service offering to our PE clients who, like Raymond James, are constantly looking to provide value and growth for their investors,” said Paul Reilly, Raymond James’s chairman and CEO, in a statement.
The acquisition, as noted in the release, emphasizes Raymond James’s commitment to growing its investment banking business, “and represents the firm’s entrance into providing capabilities such as private fund placements and secondary market advisory to PE firms.”
In December, Raymond James also announced that it had acquired Financo, a consumer-focused boutique investment bank, also with offices in London and New York. That transaction is expected to close in the firm’s fiscal second quarter.
The Wall Street Journal reported that Cebile has advised on more than $39 billion in more than 125 completed primary fund placements and secondary transactions. It noted that in November, the firm advised on fund-raising for a $249 million continuation fund for Princeton-based Edison Partners’ 2010 vintage Edison Fund VII. Edison invests in technology companies. (Continuation funds allow investors to roll investments forward from funds that are closing.)
Sinha Haldea said Raymond James has the international capabilities and a robust platform paired with the service level and personal touch of a boutique. “Together, our strengthened and expanded offerings will deliver the sophisticated solutions for which our clients are accustomed, while continuing to be an industry leader in [general partner-led] secondary advisory and fund placement services.”
Cebile’s has a track record of success across fund placement and both general-partner-led and limited-partner-led secondary market transactions, noted Jim Bunn, president of Raymond James Global Equities & Investment Banking. “Sunaina and the entire Cebile team are trusted partners to their clients who provide them with bespoke solutions. By joining Raymond James, their clients gain access to the expertise of our 450 investment banking professionals and industry experts to further assist them in providing strategic advice to private equity firms and their portfolio companies,” he said.