Cazenove (stock broker)
| Company type | Private partnership (until 2000), then corporate entity |
|---|---|
| Industry | Financial services, Investment banking, Stockbroking |
| Founded | 1823 |
| Founder | Philip Cazenove |
| Fate | Merged with JPMorgan Chase (investment banking division, 2009); fund management acquired by Schroders (2013) |
| Successor | JPMorgan Cazenove (investment banking) |
| Headquarters | London , United Kingdom |
Area served | United Kingdom, Europe, Asia-Pacific |
Key people | Bernard Cazenove (final family member involved, former head of fund management) |
| Products | Investment banking, stockbroking, fund management, private equity |
Number of employees | 1,170 (circa 2000) (2000) |
| Parent | JPMorgan Chase (post-2009 for investment banking division) |
Cazenove was a prominent British stockbroker and investment bank established in 1823 by Philip Cazenove. It stood out as one of the UK's final independent investment banks operating under a private partnership model. In 2004, its investment banking division entered into a joint venture with JPMorgan Chase, while its fund management segment, Cazenove Capital Management, became an independent entity in 2005. JPMorgan Chase completed the acquisition of the investment banking unit in 2009. Subsequently, Cazenove Capital Management was purchased by Schroders in 2013.
Renowned for its exclusivity and discreet approach to business, the partnership was a leading brokerage and corporate advisory firm in London. The Financial Times characterized it as "dominant," highlighting its unique "aura."
History
The company’s roots date back to Huguenot financiers who fled France after 1685, including the Cazenove family, who eventually settled in London to pursue commercial ventures.
Philip Cazenove entered the business of his brother-in-law John Francis Menet in 1819. Together they formed a partnership, officially founding Cazenove in 1823. Following Menet’s passing, Cazenove partnered with Joseph Laurence and Charles Pearce. By the 1930s, the firm had established itself as a leading stockbroking partnership in London.
During the 1980s, Cazenove played a significant advisory role in numerous privatisations conducted under Margaret Thatcher’s government.
Corporate restructuring
In 2000, Cazenove & Co announced plans to transition from a partnership to a corporate entity and pursue a listing on the London Stock Exchange. At that point, the firm had 80 partners bearing unlimited liability and employed 1,170 staff members. After incorporation, it secured investment from institutional investors valuing the company at £1.2 billion. However, adverse market conditions in the UK during 2001–2002 postponed the public offering. Meanwhile, Cazenove expanded its international presence by opening offices in Frankfurt, Paris, and Beijing and reorganized its fund management operations.
Integration with JPMorgan Chase
In November 2004, Cazenove and JPMorgan Chase agreed that JPMorgan would acquire half of Cazenove’s equity and merge their UK investment banking businesses, with an option to acquire the remaining half within five years.
By 2009, JPMorgan finalized the full purchase for £1 billion and continued operating under the name J.P. Morgan Cazenove. That same year, JPMorgan Cazenove divested its Asian operations, Cazenove Asia, selling them to Standard Chartered Bank’s Hong Kong branch.
Business divisions
For the fiscal year 2003/04, Cazenove reported revenues of £251.4 million ($452 million) and consisted of:
- JPMorgan Cazenove: a joint venture launched in 2004 merging Cazenove’s and JPMorgan’s UK investment banking teams; fully acquired by JPMorgan in 2009.
- Cazenove Capital Management: overseeing £7.6 billion in assets; operated independently until Schroders acquired it in July 2013.
- Cazenove Private Equity: which was spun off as an independent private equity firm later rebranded as DFJ Esprit.
- Cazenove Asia Limited: serving as the Asia-Pacific regional office with locations in Hong Kong, Shanghai, Beijing, and Singapore; acquired by Standard Chartered PLC in February 2009.
Other
Bernard Cazenove, the final family member involved with the company and former head of fund management, stepped down in December 2004 before the merger with JPMorgan. He was a direct descendant of the company's founder, Philip Cazenove.
Although the firm never officially acknowledged it, Cazenove was commonly recognized as the designated stockbroker to Her Majesty The Queen.