INVESTEC has snapped up a majority stake in boutique deal-making firm Capitalmind as a consolidation of smaller investment banks accelerates amid a deals drought.

The London and South African-based bank said yesterday it had doubled its stake in the smaller firm and would now merge its deal-making and corporate finance teams "under one common umbrella".

The tie-up would create a "leading provider of M&A advice in Europe" with 129 deal makers now operating as one team, Investec said in a statement.

"This acquisition is consistent with our European growth strategy, and in particular our commitment to growing our capital light revenue base," said Ruth Leas, chief of Investec Bank. "In a single transaction, it provides us with a footprint across the major economies of western Europe, significantly enhancing our ability to bring international solutions to our clients."

Investec first established an "international advisory partnership" with Capitalmind in 2018.

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