Cascadia Capital, an investment bank based in Seattle is increasing its cash reserves through an exclusive deal in partnership with a private equity company.
Cascadia acquired over $50 million in funding in funding Atlas Merchant Capital, the New York and London-based firm created by the former Barclays Chief Executive Officer Bob Diamond.
Established in 2000, Cascadia Capital is a resource for retailers, healthcare tech and other companies find buyers.
The deal announced on Wednesday is not common, especially when an investor like Atlas is making a significant minority equity investment in an independent advisory bank. “They are few and far between,” Cascadia co-founder and CEO Michael Butler told Economic pitch
Butler stated that the deal will assist Cascadia “close the gap” in comparison to its competitors. It will in turn, provide more control over the business to the directors of the managing company.
“Across the broader investment banking landscape, large Wall Street banks have become less entrepreneurial, less versatile, and more like utilities,” Diamond declared in an announcement. “This shift — coupled with the recent wave of consolidation — underscores the critical need for what Cascadia brings to the market as an innovative and flexible independent firm.”
Butler has previously worked in the past with Diamond in the past at Morgan Stanley. He said that he saw Diamond as well as Tom King, another Atlas partner as “luminaries.”
“We believe we have an opportunity to do something really special with the help of Atlas,” Butler added.
Alongside team expansion, Cascadia plans to grow its consulting services for valuation and capital raising practices and valuation practices, among other things.
Butler was the co-founder of Cascadia in 2000 along with Kevin Cable, who is currently a managing director of the company. The company has has raised 150 million to fund a special-purpose acquisition company, also known as SPAC named Cascadia Acquisition Corporation. which is aiming to acquire companies in the robotics or AI sector. The company is yet to select a business it is planning to purchase via it’s SPAC vehicle.
Cascadia also invests direct into companies through Cascadia Private Capital which is its merchant bank subsidiary. In the year 2018, Cascadia said it would invest as much as 500 million into Pacific Northwest companies with the launch of the “Investment Club,” made by Cascadia Private Capital as well as other investors looking for long-term contracts.