Sam Smith, CEO, finnCap Group
"Our results are a testament to the great team we have built over many years, and to our dynamic, collegiate and smart-thinking culture in delivering our clients’ ambitions in an extraordinarily complex environment. Our stronger results allowed us to accelerate our strategy of expanding our product suite for growth companies in the second half making key sector and origination hires, increasing our capability in our core ECM business and establishing access for clients to new pools of capital."
Stuart Andrews, Managing Director, finnCap Capital Markets
"We delivered our best-ever financial results whilst operating in the most complex operating environment we have seen since finnCap was founded. Strong equity market conditions and the impact of COVID-19 on clients – both positive and negative - created extraordinary demand for our services and pressure for our team to deliver."
Overall equity issuance on AIM was high with c.£5.4bn raised in the year. Our market share was c.13% (fundraisings between £5m and £100m) reflecting our particular strength and historic investment in the Technology, Life Sciences and Consumer sectors.
The corporate placings and block trade market was busy and fund managers were highly receptive to:
- investment in COVID-19 related therapies
- providing support for companies impacted by COVID-19 UK lock-downs; and
- providing funds to support strong growth-led investment cases
Retail investors also returned to the equity markets, providing increased liquidity and a further source of capital. The increased liquidity and restored valuations also spurred on the IPO market adding new companies and life to AIM.
The M&A market was altogether more volatile with the COVID-19 uncertainty significantly impacting buyer confidence at the start of the year.
However, transaction finance remaining readily available, deal appetite remaining high in the private equity community and the impact of owners’ concerns about potentially adverse changes to capital gains tax created much increased activity by the year end.
FY22 has started well. We are encouraged by a buoyant equity and M&A markets and our pipeline of deals is strong for the remainder of H1.
finnCap Capital Markets
In the year, finnCap Capital Markets executed 60 transactions, including raising over £720m across 33 equity fundraisings for listed clients and four IPOs.
As capital markets recovered and funding and confidence concerns eased, we saw a significant increase in M&A market activity and a rush to complete multiple deals in March 2021 to remove perceived uncertainty around the impact of the UK budget.
finnCap Cavendish generated revenues of £12.2m, up 67% on FY 20 (£7.3m). In total, it closed 11 private M&A transactions with an aggregate value of £388m and noted a much stronger performance in H2.