Leading corporate finance advisory firm Clearwater has been acquired by an American investment bank, KeyCorp.
The definitive agreement to acquire Clearwater Corporate Finance LLP marks Key’s strategic entry into the Western European market, expanding its ability to provide financial advisory services to institutional clients.
Clearwater, which swept the board in the regional Rainmaker Awards last year, was founded in Manchester and Nottingham in 2002 by experienced corporate finance advisers Michael Reeves and Phil Burns.
Its message from the deal is that it’s business as usual, and that the deal is to acquire the UK partnership only. The Clearwater network will continue to be affiliated and utilise the brand, but will remain financially independent.
The transaction builds on a collaboration agreement established in 2020 between KeyBanc Capital Markets Inc. and Clearwater. This multi-year partnership has validated the strategic and cultural compatibility between the organisations. The agreement covers the UK entity with the intent of strengthening collaboration across Clearwater’s broader European network.
The combined platform will offer US-based private equity sponsors and corporate clients access to European acquisition targets and exit strategies, while providing European clients with access to the US M&A market.
“Years of collaboration with Clearwater has generated significant value for clients on both sides of the Atlantic,” said Randy Paine, President of Key Institutional Bank. “This transaction is the natural next step in the relationship and directly supports our institutional banking growth strategy.”
Mark Taylor, Chief Executive Officer at Clearwater UK said: “This is a significant milestone for Clearwater UK’s growth story.
“Having partnered with Key for many years, we are confident that both organisations know each other well and that our values and cultures closely align. Importantly, our service offering to clients and core market will remain unchanged, only enhanced.”
The transaction is subject to required regulatory approvals, including approval by the UK Financial Conduct Authority, and customary closing conditions and is expected to close in the second half of 2026. KeyBanc Capital Markets is serving as exclusive financial advisor to KeyCorp and Davis Polk & Wardwell LLP is acting as transaction counsel. Clearwater UK is serving as exclusive financial advisor to Clearwater Corporate Finance LLP and Browne Jacobson is acting as transaction counsel.
Last year across the firm Clearwater completed 21 deals, with a combined transaction value of over €1.3bn, with over half of these deals completed during April, May, and June and the debt advisory team has completed 12 deals, raising over €576m of finance.
More to follow….