Shanny Basar, of Financial News, reports:
Last week Nasdaq OMX Group and IntercontinentalExchange announced their joint $11.3bn counter-bid for NYSE Euronext, and advising ICE is Broadhaven Capital Partners, a boutique founded in 2009 that has just seven employees.
It isn’t the only big deal Broadhaven has to its credit. It advised Bats Global Markets, the US exchange operator and technology company, on its acquisition of multilateral trading facility Chi-X Global, which was announced in February.
But it is the NYSE deal that has Wall Street’s eyes now. The Nasdaq-ICE bid topped the value of NYSE Euronext’s planned merger with Deutsche Börse. ICE is also being advised by Lazard and Canada’s BMO Capital.
The ICE transaction team is led by Jerry von Dohlen, co-founder of Broadhaven, who has a long relationship with the company and its management team. Before launching Broadhaven, von Dohlen was global head of the exchange, brokerage and trading sector in investment banking at Goldman Sachs Group.
Von Dohlen founded Broadhaven with Greg Phillips, who he has known for almost a decade since they worked together at UBS. Phillips also worked at advisory firm Wasserstein Perella, hedge fund Citadel Investment Group and MII, an activist investor in emerging technology companies.
Before starting Broadhaven, von Dohlen and Phillips worked on other large landmark deals in the sector, including advising Brazilian stock exchange Bovespa on its merger with BM&F, a local futures exchange, as well as Bovespa’s demutualisation and initial public offering. Other deals included advising U.S. clearer DTCC on its attempted merger with U.K. rival LCH.Clearnet and the IPOs of the New York Stock Exchange and the International Securities Exchange.
Broadhaven focuses solely on financial technology, free of the conflicts within a bulge bracket firm, and has an in-house private-equity fund that was raised in late 2009 to invest in smaller growth companies. As well as exchanges and markets, financial technology includes trading and brokerage, clearing and settlement, wealth management technology and payment processing and technology.
Broadhaven has work to do on the ICE/Nasdaq bid. Brad Hintz, an analyst at Bernstein, said in a note Wednesday that an ICE/NYSE Liffe deal could resurrect Department of Justice concerns about vertical integration of futures execution and clearing. Hintz said: “If this issue arises, ICE will likely drop out of the bidding and the Deutsche Börse deal moves forward.”
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