KeyBanc Capital Markets Strengthens Position by Acquiring Atlantic-Pacific Capital for Enhanced Financial Services

In a strategic move aimed at expanding its capabilities within the financial sponsorship landscape, KeyBanc Capital Markets Inc. has announced a definitive agreement to acquire Atlantic-Pacific Capital, Inc. This acquisition is particularly noteworthy as it not only broadens KeyCorp's service offerings but also enhances its commitment to delivering top-tier private capital solutions to its clients.

Atlantic-Pacific Capital, a premier private capital advisor established in 1995, has built a robust reputation in the investment community. With a global presence and a specialized focus on private equity, real estate, private credit, and real assets, the firm has successfully managed more than 180 capital raising assignments, aggregating over $123 billion. This impressive track record positions Atlantic-Pacific as a formidable addition to KeyBanc.

The acquisition will enable KeyCorp to tap into Atlantic-Pacific's extensive advisor network and distribution reach, significantly enriching its advisory capabilities and capital raising services. Randy Paine, Head of KeyCorp's Institutional Bank, emphasized that the integration of Atlantic-Pacific’s expertise will be crucial in meeting the evolving needs of financial sponsors. As Paine noted, "This acquisition marks a significant step forward in our ability to serve financial sponsors with private capital solutions at both the fund and asset levels."

Both companies share a commitment to maintaining strong relationships with institutional investors worldwide. James Manley, Founder and Chairman of Atlantic-Pacific, highlighted that joining KeyCorp will allow them to maintain their dedicated approach while benefiting from the resources of a leading corporate and investment bank. This alliance promises to provide clients access to an enhanced portfolio of advisory services tailored to their unique needs.

The acquisition is designed to address the current market trends where sponsors often seek multiple channels to raise capital. Raed Elkhatib, President and CEO of Atlantic-Pacific Capital, stated, "Sponsors today don't raise capital one way. The same firm might be raising a fund, syndicating a direct deal, and running a continuation vehicle simultaneously. They want a partner who can execute across all of it."

With the closing of this transaction anticipated for early 2027, subject to regulatory approvals and customary closing conditions, both KeyBanc and Atlantic-Pacific are poised for significant growth. KeyBanc Capital Markets has already established itself as a leader in providing capital markets and advisory solutions, further solidified by the expertise brought in through this acquisition. The deal signifies a promising future for both entities, with a reinforced capability to deliver exceptional service to financial sponsors and their investors.

In summary, this acquisition not only represents a critical milestone for KeyBanc Capital Markets in broadening its market reach but also underscores a strategic alignment between the two firms focused on enhancing client services and adapting to the dynamic landscape of financial markets. As KeyCorp continues to innovate and expand its offerings, clients can expect to benefit from a more comprehensive suite of financial solutions tailored to meet their needs. This move also reflects KeyCorp's broader strategy of growth and leadership in the financial services sector, ensuring it remains competitive in an ever-evolving industry landscape.

Topics Financial Services & Investing)

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