Cazenove (stock broker)
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Cazenove is a British stockbroker and investment bank, founded in 1823 by Philip Cazenove. Although the firm refuses to comment on its relations to the Royal Family, it is widely assumed that it is the appointed stockbroker to Her Majesty The Queen.[1] Until recently, it was one of the UK's last independent investment banks and one of the last to remain a private partnership. The Partnership was well-known for its 'blue-blooded' reputation and its complete aversion to publicity, but it was one of the most successful brokers and corporate advisers in London.
[edit] Merger with JPMorgan Chase
In 2000, Cazenove & Co announced its intention to dissolve the Partnership and float on the London Stock Exchange.[2] The company duly incorporated and raised funds from institutional investors,[3] but the company's ambition to list publicly was ended by poor market conditions in the UK in 2001 and 2002.[4] The company continued to perform well in 2003 and 2004 and could have continued as a public limited company with an internal market in its shares. However, in November 2004, Cazenove and JPMorgan Chase announced they had reached an agreement that JP Morgan would buy a 50% stake in the stockbroker, with a call option to buy the remaining 50% stake within five years.[5]
The last Cazenove to work for the company was Bernard Cazenove, formerly head of the fund management business. He retired in December 2004, just before the merger took place.[6] Bernard is a direct descendant of the founder of the firm: he is Philip Cazenove's great-great-great-grandson and his father and great-grandfather were also partners.
The bank had a turnover of £251.4m ($452m) in 2003/04 and is composed of three entities:
- Cazenove Private Equity (renamed 'Esprit')
- J.P. Morgan Cazenove: a joint venture, established in 2004, that combined Cazenove's investment banking operations with JP Morgan's UK investment banking business (now sold to JP Morgan)
- Cazenove Capital Management: handles £7.6bn in assets
Cazenove Asia Limited was the regional office of Cazenove in the Asia-Pacific region with offices in Hong Kong, Shanghai, Beijing and Singapore. In February 2009, Standard Chartered PLC, through its subsidiary Standard Chartered Bank (Hong Kong) Limited, fully acquired Cazenove Asia Limited
In 2009, J.P. Morgan Cazenove was purchased by JP Morgan for £1 billion; the company continued to be called J.P. Morgan Cazenove.[7]
[edit] References
- ^ Garfield, Andrew (5 July 2000). "Cazenove: the Queen's stockbroker". The Independent. http://www.independent.co.uk/news/business/analysis-and-features/cazenove-the-queens-stockbroker-708349.html. Retrieved 8 August 2010.
- ^ Treanor, Jill (28 November 2000). "Cazenove to float in 2002". The Guardian. http://www.guardian.co.uk/business/2000/nov/28/11. Retrieved 23 November 2009.
- ^ Hume, Neil (26 April 2001). "Stake sale values Cazenove at £1.2bn". The Guardian. http://www.guardian.co.uk/business/2001/apr/26/7. Retrieved 23 November 2009.
- ^ Treanor, Jill; Larry Elliott (29 January 2003). "Cazenove pulls flotation as FTSE ends losing streak". The Guardian. http://www.guardian.co.uk/business/2003/jan/29/ftse.stockmarkets. Retrieved 23 November 2009.
- ^ Tran, Mark (5 November 2004). "Cazenove joins forces with JP Morgan". The Guardian. http://www.guardian.co.uk/business/2004/nov/05/money. Retrieved 23 November 2009.
- ^ Armitstead, Louise (14 November 2004). "The last Cazenove leaves The Bank". The Times. http://www.timesonline.co.uk/article/0,,2095-1357404,00.html. Retrieved 23 November 2009.
- ^ Treanor, Jill (19 November 2009). "Blue-blooded City broker Cazenove bought by US bank in £1bn deal". The Guardian. http://www.guardian.co.uk/business/2009/nov/19/cazenove-jp-morgan-buyout. Retrieved 23 November 2009.
[edit] External links
- JPMorgan Cazenove
- Cazenove Capital Management
- The Cazenove Association
- Cazenove & Co. - A History (Hardcover) by David Kynaston (Author)
