Two investment banking firms are forming a strategic alliance designed in part to strengthen their ability to serve healthcare clients nationally and globally. The alliance also targets the firms' technology clients.
Under the March 21 agreement, CS First Boston said it will take a "25% economic interest" in Volpe Brown Whelan & Co. (formerly Volpe Welty & Co.), although specific terms weren't disclosed. The partners also said they will create a merchant banking fund, managed by Volpe, in which CS First Boston will be the lead investor.
"The fit was really good," says Paul Brown, a partner with San Francisco-based Volpe. New York-based CS First Boston has relationships with larger healthcare companies in the U.S. and globally, while Volpe's healthcare business primarily involves domestic companies in the "emerging segments" of healthcare, such as information systems, physician practice management, disease management, drug delivery systems and geriatric care.
Through the alliance, Volpe gets CS First Boston's global reach and access to larger healthcare companies that may be seeking to merge, acquire or partner with Volpe's clients.