Cazenove (stock broker)

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Cazenove was a British stockbroker and investment bank, founded in 1823 by Philip Cazenove. 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 was one of the most successful brokers and corporate advisers in London, being described by the Financial Times as 'dominant'[1] and as having an 'aura'.[2]

Change of corporate structure[edit]

In 2000, Cazenove & Co announced its intention to dissolve the partnership, incorporate, and then float on the London Stock Exchange.[3] The company duly incorporated and raised funds from institutional investors,[4] However the company's ambition to list publicly was hampered by poor market conditions in the UK in 2001 and 2002.[5] The company continued to perform well in 2003 and 2004, and continued as a public limited company with an internal market in its shares.

Merger with JPMorgan Chase[edit]

In November 2004, Cazenove and JPMorgan Chase announced an agreement that JP Morgan would buy a 50% stake in Cazenove and merge UK investment banking operations, with a call option to buy the remaining 50% stake within five years.[6] In 2009, JPMorgan completed the purchase for £1 billion; the combined business continued to be called J.P. Morgan Cazenove.[7]

Businesses[edit]

In 2003/04 Cazenove had a turnover of £251.4m ($452m) and was composed of three entities:

  • JPMorgan Cazenove: a joint venture, established in 2004, that combined Cazenove's investment banking operations (the clear leader in UK corporate broking, and a growing investment banking presence) with JPMorgan's UK investment banking business. This business was fully acquired by JPMorgan in 2009.
  • Cazenove Capital Management: £7.6bn in assets under management. This business continued independently, and was acquired by Schroders in July 2013.[8]
  • Cazenove Private Equity (renamed 'Esprit').

Cazenove Asia Limited was the regional office of Cazenove in the Asia-Pacific region with offices in Hong Kong, Shanghai, Beijing and Singapore. This business was acquired by Standard Chartered PLC in February 2009.

Other[edit]

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 JPMorgan merger took place.[9] 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.

Although the firm refused to comment on its relations to the Royal Family, it was widely assumed that it is the appointed stockbroker to Her Majesty The Queen.[10]

References[edit]

  1. ^ http://www.ft.com/cms/s/0/e4064d8c-19ee-11e1-9888-00144feabdc0.html#axzz2vgronRGE
  2. ^ http://www.ft.com/cms/s/0/98a237dc-d2e9-11de-af63-00144feabdc0.html#axzz2vgronRGE
  3. ^ Treanor, Jill (28 November 2000). "Cazenove to float in 2002". The Guardian. Retrieved 23 November 2009. 
  4. ^ Hume, Neil (26 April 2001). "Stake sale values Cazenove at £1.2bn". The Guardian. Retrieved 23 November 2009. 
  5. ^ Treanor, Jill; Larry Elliott (29 January 2003). "Cazenove pulls flotation as FTSE ends losing streak". The Guardian. Retrieved 23 November 2009. 
  6. ^ Tran, Mark (5 November 2004). "Cazenove joins forces with JP Morgan". The Guardian. Retrieved 23 November 2009. 
  7. ^ Treanor, Jill (19 November 2009). "Blue-blooded City broker Cazenove bought by US bank in £1bn deal". The Guardian. Retrieved 23 November 2009. 
  8. ^ http://www.schroders.com/global/cazenove-capital
  9. ^ Armitstead, Louise (14 November 2004). "The last Cazenove leaves The Bank". The Times. Retrieved 23 November 2009. 
  10. ^ Garfield, Andrew (5 July 2000). "Cazenove: the Queen's stockbroker". The Independent. Retrieved 8 August 2010. 

External links[edit]