The new offering will span equities and investment banking coverage, focusing on small-cap companies and institutional investors in this sector, the groups said in a joint statement.
Subject to regulatory approval, the new offering will combine Credit Suisse’s global reach with First NZ Capital’s small-cap expertise, the groups stated.
New Zealand-based First NZ Capital has an average 30 per cent market share in NZX trading over the past 12 months, according to Credit Suisse.
“The small-cap sector is extremely important to Credit Suisse and our institutional and private banking clients, therefore we made the decision that this is an area we would invest in and expand our capabilities,” said Credit Suisse Australia chief executive Rob Stewart.
The two entities first formed a strategic alliance in 2002. Mr Stewart said the new business was expected to create opportunities for the private bank, as it broadens Credit Suisse’s footprint and platform in the sector.
“We believe our institutional investor clients value this segment highly for the portfolio outperformance it can deliver. In addition, small-cap companies stand to benefit from this depth and breadth of coverage to meet their strategic objectives,” he added.
First NZ Capital's chief executive, Scott St John, said the firms “intend to commit targeted resources in order to support our clients, and will carry out selective recruitment in order to build the business in line with their needs”.
The new business will be chaired by Mr Stewart and led by Mr St John in the role of CEO, according to the statement. Mike Bassett, currently Credit Suisse head of domestic equities research sales, will head the securities team.
