North East corporate finance boutique grows

The North East’s first corporate finance boutique has hit the ground running with the unveiling of two new senior appointments and a move into prestigious city centre offices.

Cavu Corporate Finance - created by leading regional dealmaker Shawn Bone - has taken up residence in City Quadrant, on Waterloo Street, just a few minutes’ walk from Newcastle central station.

Bone’s first recruit is Thomas Brunsnes, a former colleague. The two have acted together on some major transactions including this year’s sale of Newcastle-based Creating Careers, to FTSE100 company Capita plc.

Cavu is targeting mid-market transactions from £2m to £100m and will operate across all sectors. Three sectors where Cavu has deep industry knowledge through the use of an advisory board are: energy, technology and healthcare.

Consequently Bone has recruited technology entrepreneur Ross Smith to Cavu’s advisory board. This board will consist of sector experts with executive industry insight to support and advise Bone’s dealmaking team and clients

Bone said: “These sectors are experiencing high M&A and investment volumes. In energy we are seeing significant investment in the oil and gas space both in terms of engineering businesses in the supply chain but also technology and software businesses supplying to those markets. Our advisory board members will assist us and our clients in these areas to optimise businesses for sale or for investment.”

Bone says he expects further recruits and board appointments in the coming months and says he has been pleased by marketplace reaction following Cavu’s recent launch.

He said: “The feedback from the intermediary community has been very positive. I believe that they all see a place for a boutique in the market, given the overall decline in the level of investment from Big Four and Tier One firms in corporate finance in the North.

“Since the office opening we have had some direct contact from both corporates and SMEs interested in selling, as well as some interest in raising development capital to accelerate growth.

“The market is currently being driven by the general improvement to the economic backdrop, which is leading to increasing valuations, and this is attracting both trade and private equity buyers. We expect M&A volumes to rise on the back of the improving macro economic climate.”

Bone is also pleased to have landed Brunsnes. With six years in corporate finance Brunsnes has widespread experience in deal management and working with shareholders looking to sell to large corporate and private equity buyers.

Smith has a stellar business career having been the CEO of 3i backed business, MDC Technology, which was bought by US Fortune 500 acquirer Emerson.

He was then chairman of a private equity backed business CSL Dualcom which was sold to private equity fund Bowmark Capital for £32m, and is currently chairman of Newcastle firm Kykcloud a leading software as a service provider.

Bone added: “Thomas is a great edition. He is highly respected by clients and has both great sell side and private equity experience.”

He continued: “We are glad that Ross is offering his expertise so that we can gain deeper understanding of technology clients and ensure they are well positioned for further equity fund-raisings or exit. Ross has a great track record with software businesses that are looking to develop both domestically and internationally.”

“Our aim with this move, and with all future advisory board appointments, will be to add value to those clients we are working with in the technology, healthcare and energy sectors. We will of course transact across all sectors and develop the sector based model further over time. “