In line with the new attitude of banking groups offering comprehensive services, Genbel Securities (Gensec) has added corporate finance advice to its range of services.
Gensec hopes to capitalise on the fact that existing clients will look to the organisation for financial advice rather than go to a new investment bank that is not familiar with the client`s business.
"With the significant expansion of Gensec Equities` private equity activities we have built up close relationships with our investee companies and it is certainly an unnecessary expense for a client to look to a new investment bank to provide corporate finance services. It would also require valuable time for a new investment bank to familiarise itself with such a new client," comments Steve M"uller, CEO of Gensec Equities.
Gensec has successfully supplied capital to the IT industry only to find that its franchise was eroded because a competitor acted as advisor and a provider of capital, says M"uller. The financial advisory service will prohibit this from happening. Gensec saw ample business opportunity in the corporate finance advisory sector with good margins available for the company.
Archway Venture Partners, a partnership between Dimension Data, Gensec and Standard Corporate Merchant Bank, focuses exclusively on the IT arena. Archway has already invested in three IT companies: Prism Payment Technologies, ITWeb and Tradek.com, which listed earlier this month. Archway takes a minority equity stake in fledgling IT companies, while maintaining a hands-on attitude towards the operation of the company.
The new division will be headed by Pieter Rörich, who notes: "We are working on a number of assignments including two new listings and we are planning to expand the team over time to around 10 professionals."
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