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RAYMOND JAMES BUYS CONSUMER-FOCUSED BOUTIQUE INVESTMENT FIRM FINANCO

January 4, 2021
January 4, 2021
Anders Jildén via Unsplash

Raymond James Financial Inc. is acquiring Financo, the well-known retail, beauty, and fashion boutique investment firm.

WHO: Founded in 1971 by Gilbert Harrison, Financo was once known for its fashion and apparel deal-making. In 2012, Harrison brought in John Berg, a private-equity executive and former investment banker, as a partner and CEO of Financo. The firm, starting in 2014, shifted its focus to beauty and personal care, as well as e-commerce and healthy living, which now make up a majority of Financo’s business.

Raymond James Investment Banking offers highly regarded capital formation and financial advisory services. Since 2015, they have participated in raising nearly $280 billion in capital for their corporate clients and completed over 875 advisory assignments, including nearly 750 M&A buy-side or sell-side advisory assignments.

WHY: The acquisition of Financo continues the firm’s strategic growth in its investment banking capabilities, both domestically and internationally. Raymond James Investment Banking’s new and enhanced subsectors of coverage within Consumer & Retail will include apparel and accessories, beauty and personal care, consumer services, direct-to-consumer/e-commerce, enthusiast brands and active lifestyle, fitness and healthy living, footwear, food and beverage, home furnishings and décor, restaurants, and specialty retail. The integration of Financo’s more than 25 experienced professionals with the Raymond James complementary consumer and retail practice positions the firm as a global market leader in consumer and retail investment banking.

IN THEIR OWN WORDS: “With our strong capital position and the growing demand for effective investment banking expertise among consumer and retail companies, this deal allows us to strategically grow our capabilities,” Paul Reilly, Chairman and Chief Executive Officer of Raymond James Financial, said in a statement.

“As the consumer and retail spaces undergo significant shifts in business models and shopping behavior, we see tremendous growth opportunity for M&A and growth capital-raising in the space, which are Financo’s main areas of expertise,” said Jim Bunn, President of Raymond James Global Equities & Investment Banking. “This acquisition significantly expands our consumer group and deepens our private-equity relationships, further assuring Raymond James is well-positioned.”

“Financo and Raymond James share the same values and client-first culture, and with similar approaches to how we do business, we were drawn to their people and their desire to focus on serving the client,” Berg said in a statement. “I’ve long admired Raymond James and the growth of its investment banking franchise.”

“This agreement marks an exciting new chapter for the Raymond James Investment Banking platform,” said Mark Goodman, who is presently the head of Raymond James Consumer & Retail Investment Banking and will continue working with clients and building the practice as Vice Chairman once the transaction is completed.

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