Mackie Research Capital, an employee owned investment firm headquartered in Toronto, intends to acquire Jordan Capital Markets, a broker/dealer based in Vancouver, for an undisclosed sum, according to a joint press release out this morning.
The transaction provides Mackie with a greater footprint on the West Coast, and strengthens their venture brokerage business, providing growth capital to early stage companies.
The merger provides Jordan with investment banking in Toronto and access to Mackie’s proprietary research. Additionally, Mackie offers Jordan a strengthened balance sheet, with approx. $38 million in cash, according to sources.
Jordan was founded in 2008 on the eve of the financial crisis and has 55 employees. Mackie has approximately 300 staff.
Mackie’s Vancouver-based team, with approximately 20-30 personnel, will move to Jordan’s Vancouver office.
Jordan Capital founder and CEO Mark Redcliffe and Shane Nyquvest, President and Sr. Investment Advisor, will manage the combined company’s West Coast operations.
Mr. Redcliffe will become Executive Vice President of Mackie and serve on its board of directors. Mr. Nyquvest will be the firm’s head of retail and will also join Mackie’s board.
The Jordan Capital trade name will be dissolved and replaced with Mackie’s branding.
“Nothing’s changing, we are a venture deal shop,” said Payton Nyquvest, an Investment Advisor at Jordan.
Nyquvest added that the combined firm would be aggressively recruiting other entrepreneurial minded brokers, and said there is potential for further consolidation.
Thirty years ago, there were over 40 transactional focused brokerage houses in Vancouver, according to Don Mosher, a principal with B&D Capital. The investment industry in Canada has largely been consolidated by the big banks, who want nothing to do with venture business. There are now less than ten transactional focused firms here, with Mackie Research, Haywood Securities, Leede Financial, Wolverton Securities, and Salman Partners among the notable examples.
Even Canaccord Genuity, once the largest venture-brokerage in Vancouver, has evolved its platform away from transactional business and towards wealth management and global mid-market investment banking in recent years.
Lately, Canaccord has seen a number of transactional brokers leave the firm (The Nyquvest’s themselves are ex-Canaccord alumni). Canaccord founder Peter Brown left mid-way through last year and has since set up shop for himself. A few weeks ago, prominent Vancouver broker Encrico Giustra made the move over to Haywood Securities.
The turnover on Howe Street continues.