Capital Alliance ventures into Bangladesh merchant banking biz

• Enters into investment and partnership agreement with BetaOne Investments
• Move as part of CAL’s vision to No.1 investment bank in frontier markets
• Entry into merchant banking follows stockbroking JV in Bangladesh

Capital Alliance (CAL) has entered into an investment and partnership agreement with Bangladesh’s BetaOne Investments Ltd.

With the formalisation of this agreement and its entry to Bangladesh, CAL continues its ambitious yet resolute journey to realise its vision to be ‘The No.1 Investment Bank in Frontier Markets’. CAL is Sri Lanka’s leader in capital markets services.

Established in 2011, BetaOne Investments Ltd. is a leading licensed merchant bank in Bangladesh offering a wide range of financial solutions for both individual and institutional investors.

Under the agreement, CAL will own a significant equity interest in BetaOne Investments and will partner with the current group of shareholders, which includes a handful of highly reputed family businesses and professionals in Bangladesh. 

BetaOne expects to roll out a full spectrum of merchant banking services over the coming months including mergers and acquisitions advisory, debt capital markets, equity capital markets, wealth management and margin lending.

CAL was advised on this transaction by Ace Advisory, a leading advisory firm in Bangladesh providing corporate advisory and other financial services.

“We are pleased to announce our second entry-point into Bangladesh, having obtained a TREC from the Dhaka Stock Exchange earlier this month. This is a significant milestone in CAL’s venture into other regional frontier markets,” CAL Group CEO Ajith Fernando said.

“Bangladesh is expected to be one of the fastest-growing economies in the world over the next decade and we are excited to be able to play a part in the evolution of its capital markets. Our partnership with BetaOne will enable us to offer high-quality financial solutions to family businesses in Bangladesh that are seeking fresh avenues for growth whilst also offering our international clientele lucrative investment opportunities in a fast-growing market. Sri Lankan companies have also historically enjoyed good business relations in Bangladesh and we hope to create greater market access for them as they continue to invest and expand globally,” Fernando added.

“What we sought for in an investment partner was a shared purpose to elevate the benchmark for capital markets solutions in the region, founded on a strong set of values that are integral for growth and sustainability in the financial services sector. We are excited to find a like-minded partner in CAL, so that together, we can offer clients a competitive advantage at a regional scale,” BetaOne Chairman Zulfiquar Rahman said.

CAL’s market-leading insights and its focus on building long-term relationships with family businesses set it apart from other market players in this space. BetaOne expects to extend this same emphasis in Bangladesh as well.

CAL first entered the Sri Lankan market in 2000 as a licensed primary dealer, rapidly evolving into one of only five non-bank licensed primary dealers in the country. The company has grown over the past two decades to become the market leader in investment banking services, offering a growing list of solutions including wealth management, equity and debt capital markets, mergers and acquisitions advisory, stockbroking, fixed income trading and private equity. It has been lauded with the title of ‘Best Investment Banking Company in Sri Lanka’ among other accolades.