ICAP sells Exotix shares to IPGL(2)

ICAP, the world’s largest inter-dealer broker, has sold 58 percent of its stake in the emerging markets broker Exotix to investment group IPGL and the company’s employees.

ICAP, the UK-based inter-dealer broker run by Michael Spencer, has sold part of its stake in emerging markets broker Exotix to IPGL, Spencer’s own investment vehicle. 

IPGL becomes the biggest shareholder with 43 percent, with Exotix employees taking 37 percent and ICAP retaining a 19.9 per cent stake.

Exotix specialises in illiquid debt and boutique investment banking.

ICAP said the sale was in order “to reduce the regulatory capital burden 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.”

As an additional benefit, the company has realised £11 million (€16 million, $22 million) from the sale of its shares.

Peter Bartlett, chief executive of Exotix, said: ‘We are delighted by this deal which gives us the stability of our continued relationship with ICAP, 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.”

Three people will join Exotix: David Baskerville joins as chief operating officer from ICAP, Sanjeev Chhugani has been recruited from the Africa Banking Corporation, and Christopher Hartland-Peel has been appointed as an African equity researcher.

Spencer is chairman of IPGL and also the chief executive and founder of ICAP. IPGL owns shares in ICAP, and also has other investments in City Index, Numis Securities Limited and DDCAP Group.