Smith & Williamson (S&W), the private equity-backed professional services firm, has tabled an approach that would result in the break-up of the London-listed investment bank Cavendish.
Sky News has learnt that S&W, which itself was part of Evelyn Partners until earlier this year, made an offer in recent weeks to acquire Cavendish’s mergers and acquisitions arm.
The value of the offer, which is said to have been rejected, was unclear on Tuesday morning.
It was also unclear whether news of the approach from S&W might flush out interest from other parties in a potential deal with Cavendish.
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Cavendish was formed from the merger of Finncap and Cenkos Securities in 2023 amid pressure on the City’s crowded mid-market investment banking sector.
A dearth of new company flotations has squeezed the revenue bases of firms operating in the space, spurring a string of mergers, such as the one which resulted in the creation of Panmure Liberum last year.
In 2018, Finncap, the stockbroker, bought Cavendish, a specialist in advising private companies on sale processes, for £14m.
The fresh interest in acquiring the deals division underlines the more buoyant nature of that side of the investment banking business.
Apax Partners, the private equity firm, bought a controlling stake in Evelyn Partners’ professional services arm for a reported £700m.
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It then rebranded the business as Smith & Williamson, thereby reviving one of the City’s most prominent names in the sector.
A spokesperson for Apax declined to comment, while Cavendish has been contacted for comment.