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Smaller companies broker to be launched
By David Blackwell

A research-based institutional and corporate stockbroking firm is to be launched with the aim of specialising in small but fast growing companies.

Arden Partners has been formed from a nucleus of staff who were working for Albert E Sharp when it was taken over by Old Mutual Securities in 1998.

Many in the City believed that small regional brokers were a thing of the past after big overseas banks and financial groups swallowed them up in the consolidation of the sector a few years ago. But John Paterson, managing director of Arden, is convinced there is growing demand for a small, agency broker offering independent research.

"The response from institutions we have met have been supportive," he said. "Integrated houses are in conflict all the time. We can unravel the conflicts and be transparent, which is what the client wants."

Mr Paterson was formerly managing director of Albert E Sharp Securities. He and another 11 mostly ex-Sharp employees are investing a total of £1.2m in Arden. A private individual is investing another £1m and the firm will have banking facilities to borrow another £500,000.

The firm, which won its FSA authorisation last week, will research companies with market capitalisations of up to £1bn.

Its corporate finance targets will be companies with market capitalisations between £50m and £350m, but it will look at smaller companies that promise strong growth.

Mr Paterson said the firm - which will have offices in London, Birmingham and Bristol - was already recruiting further analysts and hoped to cover other sectors of the market soon.