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The Financial Times, 17 January 2010

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By Alistair Gray and Courtney Weaver

Russians buy stake in Strand Hanson

Renaissance Capital, one of Russia’s biggest investment banks, will on Monday disclose that it has taken a near-10 per cent holding in Strand Hanson, the emerging markets boutique, in a further sign that overseas institutions are regaining confidence in Aim.

The deal is the latest in a series for Strand, which added Robert Hanson’s name in the autumn after the son of the late industrialist Lord Hanson snapped up a 10 per cent stake.

The transaction also underscores the influence of overseas investors in London’s small broking houses. Among the most prominent examples is the 47 per cent stake that QInvest, Qatar’s biggest investment bank, has in Panmure Gordon, the City broker.

Strand was founded in 1993 and Conservative supporter Lord Ashcroft was a leading shareholder until last year, when Simon Raggett, chief executive, led a management buy-out. Mr Raggett said the “strategic alliance” with Renaissance showed “renewed enthusiasm” in Aim, London’s junior market, after “the bashing over the past couple of years”.

The agreement comes at a time when emerging market institutions are gearing up for what they hope will be a strong year in the initial public offerings market.

Hasnen Varawalla, head of corporate finance at Renaissance, said the investment bank had more offerings in its pipeline than it did in 2007, when Russian companies raised a record $13bn in London listings.

In 2010, Russian companies could raise $20bn (£12.3bn), he maintained.

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