GMP Capital Trust today announced its intention to form GMP Securities Europe LLP to service mid-market companies on the Official List and the Alternative Investment Market (AIM) in London.

The firm will be based in London, England and will be staffed over the coming weeks with local partners and employees with experience in corporate finance, sales, research and market making in the mining and energy sectors.

GMP Europe will be majority owned by GMP with substantial equity participation by its local partners following the model that has allowed GMP Securities L.P. to emerge as one of Canada’s leading independent investment dealers.

GMP Securities L.P. together with GMP Europe also announced today that it has agreed to partner with Panmure Gordon & Co. PLC, one of London’s oldest and most respected brokers, to further enhance its European capabilities across all sectors including general industries, life sciences, telecom and media, and non bank financials.

Under this relationship, GMP Europe will work closely with Panmure Gordon as that firm’s Appointed Representative to ensure that GMP’s Canadian clients enjoy unparalleled European execution capabilities and after-market support across all of the industry sectors currently covered by GMP. In addition, the relationship will allow Panmure Gordon to offer its U.K. clients access to the Canadian capital markets.

“The strength of the European equity markets has substantially increased our clients’ interest in listing in London, making this a natural move for us,” said Kevin Sullivan, CEO of GMP, in a news release. “We believe we have an excellent partner in Panmure Gordon who has tremendous local knowledge of the market.”

“Few firms in London enjoy the reputation that Panmure Gordon does for execution, due diligence and fair dealing,” said Eugene McBurney, chairman of GMP Europe. “Panmure Gordon has been a well-known City of London firm since its inception in 1876 and its deep local knowledge and relationships will enable us to propel our business forward to ensure we are able to best serve our clients from day one.”

“The decision by GMP to partner with Panmure Gordon is a testament to the strength and robustness of our European franchise,” said Tim Linacre, president of Panmure Gordon. “We, like GMP, enjoy a hard-earned reputation for providing independent high-quality advice and we are committed to bringing whatever resources are necessary to ensure that GMP’s clients enjoy the same level of service here in London that they currently receive in Canada.”

The boards of Panmure Gordon and GMP believe strongly that this relationship between two independent brokerages with very similar cultures will enhance the ability of both firms to service their clients in their domestic capital markets.

The establishment of GMP Europe is subject to regulatory approval.