Macquarie acquires specialist investment bank

Macquarie Group has acquired a specialist investment bank, Fox-Pitt Kelton Cochran Caronia Waller, better known in the market as FPK.

Macquarie announced the acquisition to the Australian Securities Exchange today, saying it would enhance its integrated offering to financial institutions, adding particular expertise in North America and Europe. The acquisition sees Macquarie pick up around 267 people employed by FPK in the US, UK and Asia.

Announcing the acquisition, Macquarie Capital US chief executive and president Tim Bishop said combining the FPK team with Macquarie’s internal resources was an ideal way to expand its financial institutions presence beyond the Asia-Pacific into North America and Europe.

He said it was consistent with the group’s focus on key industry sectors and added financial institutions as a core specialty for Macquarie.

The transaction will see FPK’s George Cochran and Len Caronia become chairmen of Macquarie Capital’s global FIG advisory business, while FPK president John Waller will co-head Macquarie’s global FIG advisory business alongside Macquarie’s Andrew Low.

As well, FPK’s global head of FIG equities, Charles Myers, will assume an equivalent role within Macquarie Securities as an executive director.

The acquisition consists of US$139 million in equity value plus US$16.7 million of long-term liabilities.