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RBC Capital Markets to acquire Carlin Financial Group
NEW YORK AND TORONTO, October 25 2006 — RBC
Capital Markets announced today that it has agreed to acquire
the broker-dealer business and certain other assets of the
Carlin Financial Group (the "CFG Business"), a New
York-based boutique broker dealer known for its sophisticated
trading and execution services and proprietary algorithms.
The transaction is subject to regulatory approvals and other
customary conditions and is expected to close in the first
quarter of 2007. Pricing terms of the transaction were not
disclosed.
This acquisition will give RBC Capital Markets a best-in-class
electronic execution platform from which to serve the emerging
hedge fund and professional trader communities. It will also
enable RBC Capital Markets' development of a best-in-class
North American electronic execution platform for its investing
clients. RBC Capital Markets has been building its capabilities
and client base in the U.S. mid-market for the past five years.
The CFG Business has one of the fastest and most efficient
electronic trade execution platforms in the industry, and
trades approximately 35 million shares daily. Under the leadership
of CEO Jeremy Frommer, the CFG Business has built a large
following with emerging hedge fund managers, a professional
group that executes a growing portion of all hedge fund trades
and manages a significant percentage of all hedge funds in
the U.S. "This transaction will help us to meet our clients'
ever evolving needs by expanding our capabilities into options
trading, future trading and order management," Frommer
said. "I'm very pleased to return to RBC Capital Markets,
where I spent the earlier part of my career, and we look forward
to helping clients excel in this rapidly changing environment."
Frommer brings nearly 17 years of trading and financial management
experience to RBC.
"We believe that this acquisition allows us to create
a leading North American electronic execution platform for
investors and expand into multi-asset class electronic trading,"
said Greg Mills, RBC Capital Markets' head of global equity
sales and trading. "Emerging hedge fund managers, professional
traders and other clients of the CFG Business will continue
to receive the same high quality of service they've come to
rely on, and will now also have access to the full range of
capital markets products and services we offer in the U.S."
Said Ron Shear, founder and Chairman of CFG, "I am very
grateful to the entire Carlin team for building our company
into a leading provider of innovative trading technology that
attracted the attention of a world class financial institution."
RBC Capital Markets represented itself in the transaction
and Carlin Financial Group was advised by Freeman & Co.
LLC.
About Carlin Financial Group
The Carlin Financial Group is a leading financial services
company that provides a full suite of versatile products and
services designed to meet the specific needs of financial
institutions and hedge funds. Its full service direct access
trading system, CARLINAccel, has become a leading trading
system for hedge funds. Carlin Financial Group was advised
by Freeman & Co.
About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking
arm of RBC and is active globally in debt origination, sales
and trading, foreign exchange, infrastructure finance, structured
products, metals and mining, and energy. Its North American
equity underwriting; sales, trading and research business
dominates the Canadian market and supports a significant and
growing franchise in the US middle market.
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be
deemed to be forward-looking statements under certain securities
laws, including the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act
of 1995 and in any applicable Canadian securities legislation,
and RBC Capital Markets and the Carlin Financial Group intend
that such forward-looking statements be subject to the safe-harbor
created thereby. The words "may," "could,"
"should," "would," "suspect,"
"outlook," "believe," "plan,"
"anticipate," "estimate," "expect,"
"intend," "forecast," "objective"
and words and expressions of similar import are intended to
identify forward-looking statements.
By their very nature, forward-looking statements involve
numerous assumptions, and inherent risks and uncertainties,
both general and specific, and risks exist that predictions,
forecasts, projections and other forward-looking statements,
including statements about the proposed acquisition of the
CFG Business by RBC Capital Markets, will not be achieved.
We caution readers not to place undue reliance on these statements
as a number of important factors could cause our actual results
to differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed
in such forward-looking statements. These factors include,
but are not limited to, the possibility that the proposed
transaction does not close when expected or at all because
required regulatory or other approvals are not received or
other conditions to the closing are not satisfied on a timely
basis or at all; that RBC Capital Markets and the Carlin Financial
Group may be required to modify the terms and conditions of
the proposed transaction to achieve regulatory approval; or
that the anticipated benefits of the transaction are not realized
as a result of such things as the strength of the economy
and competitive factors in the areas where the CFG Business
does business; the impact of changes in the laws and regulations
regulating broker-dealers, investment advisers and enforcement
thereof (including securities); judicial judgments and legal
proceedings; RBC Capital Markets' ability to complete the
acquisition of the CFG Business and to integrate it with RBC
Capital Markets successfully; reputational risks; and other
factors that may affect future results of RBC Capital Markets
and the CFG Business, including changes in trade policies,
timely development and introduction of new products and services,
changes in tax laws and technological and regulatory changes.
We caution that the foregoing list of important factors is
not exhaustive.
RBC Capital Markets and the Carlin Financial Group assume
no obligation to update the forward-looking statements contained
in this press release.
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For more information, please contact:
New York
Kevin Foster, RBC Capital Markets, 212-428-6902
Constance Hubbell Clapp, The Hubbell Group, 781-878-8882
Matthew Hiltzik, Freud Communications, Inc., 212-582-9795,
matthew.hiltzik@freud.com
Toronto
Katherine Gay, RBC Capital Markets, 416-974-6286, katherine.gay@rbc.com
Beja Rodeck, RBC, 416-974-5506, beja.rodeck@rbc.com
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