• Emerging-market bond brokerage raised GBP5m from its investors
  • ICAP also invests; Exotix raising funds after equities push

Exotix Partners LLP, a brokerage for emerging-market credit, raised about 5 million pounds ($7.2 million) from investors including ICAP Plc Chief Executive Officer Michael Spencerto help fund its move into equities, three people familiar with the matter said.

Spencer’s IPGL Ltd. and ICAP itself both bought shares to maintain their stakes in London-based Exotix, along with fellow shareholders Peter Bartlett and Andrew Chappell, according to the people, who requested anonymity as the deal isn’t public yet. Spencer will continue to be the biggest stakeholder, the people said.

Michael Spencer
Michael Spencer
Photographer: Simon Dawson/Bloomberg

Spencer is restructuring Exotix, which has helped clients trade everything from debts tied to Mozambican tuna to Venezuelan sovereign bonds, as expands into equity trading and bolsters the firm’s presence in east Africa. Costs from the overhaul have resulted in a loss of 5.4 million pounds for the year through March 2015, according to filings with the U.K.’s Companies House.

Spokesmen for Exotix, IPGL and ICAP declined to comment.

The ownership structure of Exotix will remain about the same after the share sale, the people said. IPGL had a 46 percent stake in Exotix before the deal, while ICAP owned about 20 percent, filings show. Bartlett and Chappell controlled a combined 29 percent.

Spencer has sought new sources of growth for ICAP as the inter-dealer broker business was hurt by low interest rates and regulation obliging banks to cut back some trading activities. He is seeking to transform ICAP by focusing on electronic markets and post-trade services.

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