Global advisory giant Brunswick explores capital raise
City PR and advisory heavyweight Brunswick is reportedly weighing up a fresh cash injection via a sale of a stake in the firm, setting the stage for a punchy windfall for its top executives.
Five years after securing a £500m valuation following the sale of a 10.7 per cent stake to US private bank BDT Capital Partners, the firm is now seeking a capital structure to support future growth. The Times reported that one of the options the blue-chip communications giant is considering is fresh external investment.
Founded in 1987 by Sir Alan Parker, the advisory firm now has 27 global offices and advises C-suite executives and boards on mergers, acquisitions, IPOs, restructuring, and crisis communications.
At the time of the BDT deal, its 200 partners received £140m, while Parker pocketed £70m.
Parker, now 70, remains a director and serves as chairman. His co-founder, Andrew Fenwick, acts as vice chair and chief financial officer.
Brunswick, with 220 partners globally, generated £400m in revenue last year and recorded earnings before interest and taxes of over £50m.
Reports indicate that the firm is considering external investment to support growth and recruitment, and to ensure that equity remains valuable for its partners.
Brunswick partners are expected to discuss options at their annual meeting in Washington this October, though no final decision has been made.
The firm declined to comment on the reports.
Advisory’s sector upheaval
The Brunswick news comes as the broader corporate advisory and strategic communications industry is going through a massive transformation. These firms, once seen as public relations agencies, have aggressively rebranded themselves as management consultancies as technology has shifted the industry away from its traditional model.
Last year, advisory firm Teneo received fresh backing from a top Liechtenstein-based buyout firm, valuing it at $2.3bn (£1.73bn).