£2.5 million FinnCap buy-out completed

FinnCap, one of the City's fastest-growing brokerage houses, is under the total ownership of its staff after the completion of a £2.5 million management buy-out.

The deal, orchestrated by the company's chief executive, Sam Smith, saw 45 members of staff – including chairman, buy-out veteran Jon Moulton – buy up the outstanding 50 per cent equity held by private client stockbroker, JM Finn & Co.

FinnCap was originally spun off from Finn & Co three years ago, breaking even in 2009 and enjoying substantial profit growth in the last financial year. The deal values the company's equity at almost £6m.

Smith – who remains the only female chief executive of a city brokerage – said the deal would be followed with plans to grow its commanding role in the small cap company brokerage field.

“We are a firm in a position of strength,” said Smith.

“In six to 12 months I have a feeling that the market could get very difficult for some of the other small cap businesses out there, so there could certainly be opportunities in the pipeline.”

She aims to increase the current client list from 63 to 80 by the end of the year and expand into new areas including oil and gas.

As a result of the transaction, Smith has also become FinnCap's biggest stakeholder with 12 per cent.

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