FinnCap staff in line of fire after Panmure Gordon bid: Bankers could face job cuts if takeover goes through

  • Panmure last week revealed it was planning an attack on FinnCap
  • Boss Rich Ritchie is hoping to rebuild his reputation damaged by the financial crisis
  • Sources say Ritchie is more likely to be interested in parts of FinnCap than others

The Fat Cat in the Hat: Avid horseman Rich Ritchie runs Panmure

Staff at City broker FinnCap should “worry about their jobs” as rival Panmure Gordon prepares to take over the firm, City sources have warned.

Bankers at FinnCap’s equity capital markets (ECM) group, who help businesses go public and raise money from investors, could face job cuts if Panmure succeeds in its takeover bid.

Panmure, led by ex-Barclays banker Rich Ritchie, announced last week that it was planning a bid for FinnCap.

Ritchie, an avid jockey who once described himself as “the maddest devil on the planet”, hopes to build Panmure and restore his reputation, which was tarnished by the scandals that engulfed Barclays after the financial crisis. .

But two sources in the City said Ritchie was likely to be more interested in some parts of FinnCap than others.

Panmure has its own ECM team, one source familiar with the deal said, and is likely to undercut FinnCap where there is some overlap.

A source said: “Why does Richie need the whole FinnCap?” I would be terrified if I was an ECM banker there. Panmure will already have many opportunities of its own.’ The jewel in FinnCap’s crown is M&A unit Cavendish, the source said.

FinnCap bought Cavendish, founded by fellow Tory Lord Lee, in 2018. She advises businesses looking to sell themselves and worked on the sale of Peach Pubs to Revolution Bars and Barburrito’s deal with The Restaurant Group.

Unlike FinnCap’s ECM team, Cavendish also works on non-stock market deals – such as sales of private companies to other unlisted companies or private equity firms.

As economic turmoil has left stock market investors reluctant to buy into IPOs and fundraisings, experts predict that this private sector of the market will see the most activity over the next few years as cash-rich companies and private equity firms companies take advantage of low prices.

One City analyst said: “FinnCap is not the business Panmure wants – Cavendish is. That’s where the activity will be.” The analyst added that by buying FinnCap, which has been traded on the stock market since 2018, Panmure would also gain a valuable London listing.

FinnCap declined to comment. It currently has about 155 employees, but doesn’t break down how many of them work on the ECM team.

However, a source close to the broker downplayed any threat to jobs, saying there was little overlap between the areas covered by ECM bankers at FinnCap and Panmure.