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ICAP plc sells Exotix stake to employees and Spencer-controlled firm

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ICAP plc has reduced its stake in specialist emerging markets broker and arranger Exotix Limited  by 58% following a sale of shares to the employees of Exotix, and to IPGL Limited, a

ICAP plc has reduced its stake in specialist emerging markets broker and arranger Exotix Limited  by 58% following a sale of shares to the employees of Exotix, and to IPGL Limited, a private equity firm focused on financial assets and controlled by Michael Spencer.

Under the new structure, Exotix is owned by IPGL (43%), Exotix employees (37%) and ICAP (retaining 19.9%). In an earlier notice of EGM ICAP announced that it had agreed to sell most of its stake in Exotix to IPGL to reduce the regulatory capital burden on ICAP which would have become unduly onerous as a result of changes in the method of calculation of regulatory capital under the EU Capital Requirements Directive (the ‘CRD’). The aggregate consideration paid to ICAP is GBP 11 million.

Exotix is a securities firm specialising in broking Emerging Market illiquid debt and equity, boutique investment banking, advisory and structured financial instruments. Exotix’s core competence is its specialist understanding of illiquid, distressed, or undervalued debt, equity and alternative investments.

Peter Bartlett, Chief Executive, Exotix said: ‘We are delighted by this deal which gives us the stability of our continued relationship with ICAP plc,  increased employee ownership and the strategic support and commitment of IPGL.  We share IPGL’s excitement about the potential growth in our emerging markets niches, and especially for Sub Saharan Africa, the Caribbean, the Middle East and the Balkans.

‘IPGL is committed to supporting our growth by investing in people and infrastructure and the expansion of Exotix’s product range as we move into equity, private equity and structured products. We have demonstrated a strong track record so far, and have been very busy developing our franchise in all of these markets.  We are being awarded more mandates to raise debt and equity capital for emerging market mid-cap companies in countries as far afield as Paraguay, Ghana and Yemen.

‘I am pleased that our senior management has been substantially strengthened by David Baskerville, who joins as Chief Operating Officer from ICAP, Sanjeev Chhugani who has joined us from the Africa Banking Corporation to build our advisory and structuring business, especially in Africa and the Middle East, and Christopher Hartland-Peel as an African equity researcher. We expect to make further announcements soon.’

Matt Wreford, Director, IPGL said: ‘Our relationship with the Exotix team goes back to 1999 but we are excited to be more closely involved. Peter and his team are highly respected by their clients and we believe that their combination of deep market knowledge and entrepreneurial approach will enable them to build a successful boutique into a market leader.’

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