Mackie Research Financial Corp., the parent company of Toronto-based Mackie Research Capital Corp. (Research Capital), said Wednesday it has entered into an agreement to acquire Jordan Ventures Ltd., the parent of Vancouver-based investment dealer Jordan Capital Markets Inc.
Jordan Capital is a private client investment and venture investment banking firm. Its move into Research Capital reinforces the latter’s commitment to growing its venture capital business in Western Canada, according to Geoff Whitlam, president of Research Capital.
This is in spite of the fact that the venture market, as seen on the Toronto Stock Exchange, has been out of favour for several years, he says.
“I don’t think this can last forever. Canada is one of the best places in the world to attract a marketplace for venture capital. We’ve got well-regulated, sound capital markets here,” says Whitlam.
As a part of the acquisition, Research Capital will access Jordan Capital’s Colombian-based investment banking platform with its focus on the materials and energy sectors. This will expand Research Capital’s existing presence in the area of international resource industries.
Whitlam and Patrick Walsh, chairman and CEO of Research Capital, will remain in their current roles pending the completion of the acquisition. Stew Vorberg and Mark Redcliffe, founders of Jordan Capital, will be a part of the management team for the Vancouver operations of the combined firm.
The experience of the Vancouver-based team was another advantage for Research Capital.
“We want to have a management team that are out there trying to build and grow our business daily,” says Whitlam, “as opposed to having a number of brokers conducting business out of an office.”
Research Capital is an employee-owned national investment firm with more than 300 employees. It provides discretionary portfolio management, advisory wealth management, capital markets and venture capital services to growth-oriented investors and issuers.
The agreement of acquisition is subject to customary closing conditions, including regulatory approvals.
The deal marks the second in the last six months for Mackie Research, which acquired Calgary’s Jennings Capital Inc. last October.