Investment banking firm Singhi Advisors has acquired 15% stake in the UK-based global investment banking network Mergers-Alliance as it tries to explore cross-border acquisition opportunities and expand its global footprint.
The deal makes the Mumbai-based investment bank an equal partner in the global alliance along with its five other founding partners. The founding members of the 20-member alliance include Catalyst of Britain, Ethica of Italy and Norgestion of Spain. The financial details of the transactions were, however, not disclosed.
"We have been a member of the alliance from 2007. The status of an equal partner helps us to drive strategies. Our new role underscores the growing importance of Asia in the global M&A business. The alliance plans to tap opportunities in Korea, Indonesia and Malaysia and the Middle East," said Mahesh Singhi, MD, Singhi Advisors.
Mergers-Alliance is a major global network of independent investment banking advisors engaged in mid-market deals. The alliance had closed 90 transactions worth 5 billion euros last year. The UK-based alliance secured 16th position in the global M&A league table prepared by Thomson Reuters.
The trend of Indian investment banking firms joining global alliances has gained momentum as it helps secure international linkages. The idea of global investment banking alliance caught the global imagination four decades ago with the advent of alliances like M&A International, IMAP and Merger-Alliance. O3 Capital and SBI Caps are members of IMAP.
"These alliances will help in identification of an overseas counterparty for an Indian company looking to buy abroad or vice versa. You need overseas strength and expertise to develop your business," said Anish Modi, MD, Tarang Advisory, a Mumbai-based firm which focuses on special situations.