Religare Capital Markets (RCML), a unit of financial services firm Religare Enterprises, has roped in Martin Newson to give a push to its investment banking operations in the emerging markets.
With the talent acquisition of Newson, previously global equity head at Dresdner Kleinwort, UK, RCML is looking to evolve into a global emerging markets investment bank.
Newson, who will operate out of Religare’s London office, will oversee the entire I-banking and institutional brokerage business across all various geographies including India.
In a statement, Shachindra Nath, COO, Religare Group, said, Newson’s earlier experience in building successful global franchises will be crucial in enhancing Religare’s global investment agenda, especially for the emerging markets.
Commenting on his appointment, Newson said, the global investment banking segment is yet to reach an inflection point. Trade and investment flows are burgeoning not only between emerging and developed markets, but also intra-emerging markets, he added.
RCML is also looking at the inorganic route such as buyouts and joint ventures to scale up its operations. In the first phase, the company plans to foray into Malaysia, Indonesia, Hong Kong, the Philipines and Vietnam, while in the second phase, it is eyeing China, Russia and South Africa, Turkey, Slovakia and other emerging European countries. In 2008, RCML acquired 97.76% stake in London-based Hichens Harrison & Co Plc, a 205-year-old brokerage and investment firm.
Quoting a study Mckinsey, RCML said, investment banking revenues in emerging markets will rise by 16% till 2010, contributing 28% of the global total. The study expected that the revenues of Emerging Asia (excluding Japan) will rise by over 60% while those of Latin America will grow by 16%. Emerging Europe is expected to grow by 19% and Middle East by 25%.