Toby
Melville/Reuters
Blackstone just announced one of the largest leveraged
buyouts in its history,
paying Thomson Reuters $17 billion to take a 55% stake in
its financial data business.
A tiny investment bank out of London that has been
around for less than a year was a lead adviser to
Blackstone.
Canson Capital Partners formed in early 2017 and has
just five bankers, but it'll share in the pie of as much as $80
million in advisory fees on the deal.
Blackstone just completed one of the largest leveraged buyouts in
the company's history,
paying Thomson Reuters $17 billion to take a 55% stake in its
financial data business.
Including debt, it values Thomson Reuters' Financial & Risk
business at $20 billion, making it the largest deal Blackstone
has arranged since the financial crisis.
Guiding Blackstone on the mammoth deal was a tiny investment bank
out of the United Kingdom that has been around for less than a
year.
Canson Capital Partners, a boutique advisory firm founded in
early 2017 by ex-HSBC bankers James Simpson and Matteo Canonaco,
had a lead role advising Blackstone, which will net the firm a
healthy chunk of the $10 million to $20 million in fees
Blackstone is expected to pay its bankers, according to Jeffrey
Nassof, the director of consulting firm Freeman & Co. Bank of
America Merrill Lynch, Citigroup, and JPMorgan also advised
Blackstone.
Canson, formerly named DuCanon, is an outfit of just three
bankers and two senior advisers based out of a Mayfair
office building in London, where it focuses on private equity
transactions.
"Very proud to announce Canson Capital Partners Lead
Advisory role in Blackstone's Partnership with Thomson Reuters,"
Simpson
wrote on LinkedIn.
It's not their first time advising Blackstone, the world's
largest private equity firm. The boutique's inaugural deal came
last July, four months after launching, when it helped Blackstone
buy Clarion Events for £600 million ($850 million),
according
to the Financial Times.
Guggenheim Securities was the lead adviser to Thomson Reuters.
It'll split a fee of $50 million to $60 million, according to
Nassof, with TD Securities and Centerview Partners, a small
advisory boutique that
had a stellar year in advising on megadeals in 2017.
Still, at 37 partners, Centerview almost looks like a bulge
bracket bank compared with the three partners at Canson.
In total, the banks could earn as much as $80 million for
advising on the transaction.
The deal is expected to be financed with $13 billion in debt,
which Bank of America Merrill Lynch, Citigroup, and JPMorgan
will split $130 million to $160 million in fees for arranging,
according to Nassof
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