Independent investment banking group buys majority stake in alts boutique

City Wire
by Ian Heath

Luxembourg-based group agrees to acquire a 60% share in RiverRock European Capital as it looks to diversify its investment offering in Europe.

Independent investment banking group CFE Finance has agreed to buy 60% of alternatives group RiverRock European Capital Partners  in a binding agreement.

It is hoped that the deal, which is subject to approval by the UK’s Financial Conduct Authority, will enable CFE Finance to diversify its investment portfolio in Europe.

Under the terms of the agreement, RiverRock will continue to specialise in alternative investment solutions for global investors and customised solutions for small- and medium-cap European companies.

RiverRock, which is headquartered in London, was established in 2009 and its services include asset management, financial advice, securities brokerage and technology solutions.

It provides debt and equity investments, such as preferred equity, convertibles and loans with equity warrants.

CFE Finance, which was founded in 2001, is an investment banking boutique specialising in niche credit strategies, with assets under management of €1.5bn.

Michel Péretié, CEO of RiverRock, said: ‘This transaction will further strengthen and expand our investment platform, now that traditional financing channels are not able to fully satisfy market demand.’

Mario Cordoni (pictured), CEO of CFE Finance, said: ‘Upon completion of the acquisition, we will immediately work with RiverRock’s management team to develop the best synergies and bolster our respective market positioning.’