Navigating Uncertainty: A Deep Dive into Investec Capital
Every year in the 2020s has brought its own unique shock to the global system. From a pandemic to a world war and the resurgence of inflation, uncertainty has become the new normal for businesses, forcing a reassessment of strategies and approaches.
For some financial institutions like Investec, this volatility presents an opportunity. Its partnership with Capitalmind, a European corporate advisor, showcases how embracing agility and strategic partnerships can lead to success.
Jonathan Arrowsmith, head of investment banking at Investec, highlights a shift toward market players that are more adaptable and responsive. “Those vast, settle-in mergers and acquisitions,” Arrowsmith observes,
“Over the course of 2024 we saw improvement in the M&AS landscape, particularly due to stabilization of inflation and interest rates coupled with the decisive election victory of the Labour party.” He believes that the United Kingdom’s economy fueled by services will continue to offer attractive opportunities across sectors such as healthcare, professional services and technology.
In contrast, Germany, facing its own economic challenges and a looming election in February 2025, offers a different perspective. “Germany is undergoing a prominent shift as the prominence of industrial sector deals has declined by approximately 50% since 2022,” says Ervin Schellenberg, managing partner at Capitalmind.
Capitalmind held strong client relationships in the industrial sector before 2022. Forecasts showed rapid increase in activity, however the economic slump made this an increasingly competitive sector. Now, they are seeing strong growth in business services, navigating the ‘service-fication’ of industry.
“What we see is a trajectory toward further diversification’ Schellenberg explains. “Traditional manufacturing companies are increasingly becoming service providers to diversify their offerings, creating exciting new opportunities.”
Germany’s economy might be experiencing a slowdown, yet new opportunities are emerging in sectors like business services, reflecting a shift toward service-oriented offerings from traditional industries like those in the automotive and manufacturing sector
The Value of Strong Partnerships
Investec’s success hinges on building close connectivity and respect across borders. This is illustrated by their partnership with Capitalmind.
Back in 2018, it became evident to Investec that Area expertise would be crucial for navigating evolving economic landscapes. A key goal was to bolster their existing footprint within Europe.
Through a 30% stake that grew to 60% in 2023, Investec responded effectively to avoid becoming top heavy as many larger institutions do. At the outset it sought partners that shared similar work ethic and cultural values.
“There are far more complexities involved in cross-border financing and transactions, ” says Rebecca Nelson, Managing Director at Investec Capital said, “We feel fortunate to find our partners at Capitalmind shared our values and long-term vision.”
Investec’s regional squad at Capitalmind informed them that German companies are heavily focused on establishing new paths. This reflects a global theme of economies moving away from a reliance on hefty corporate organizations.
As a result, over 2024, the two older partnerships agreed to a deeper systemic shift.
This engagement lacked political disaggreg Donorsblends to achieve synergies for both the merging of their services
The dynamic between Arrowsmith, based in London and Schellenberg who is based in Frankfurt, is a prime example
“We built Investec Capital together, and thus from our respective team are incredibly solidified to creating exceptional service for clients.
