carlProlific London has been looking into Robey Warshaw this week, so as usual, let’s break down what this business is all about.
What Do They Do?
Robey Warshaw LLP is a boutique investment bank situated in London. It was established in 2013 by renowned investment bankers Sir Simon Robey, Philip Apostolides, and Simon Warshaw. Before founding the firm, Robey, Apostolides, and Warshaw had distinguished careers as dealmakers in the City of London.
Robey Warshaw specialises in providing excellent financial advice to its clients. As an investment banking company, they provide services such as corporate financial advice, helping businesses with their investment strategies (strategies assistance), and advising on corporate transactions.
The People
Sir Simon Robey served as the former co-head of mergers and acquisitions at Morgan Stanley, Simon Warshaw was the former investment banker at UBS, and Philip Apostolides was a managing director in Morgan Stanley’s financial sponsors group.
In a significant development in 2020, George Osborne, the former Chancellor of the Exchequer, became the firm’s first new partner since its inception.
As reported by The Observer, experts in the banking industry attribute Robey Warshaw’s early success to the extensive connections of its founders and its adeptness at maintaining discretion during negotiations, facilitated by its small team of fewer than 20 employees. The Telegraph has highlighted the firm’s “personal approach,” which resonates well with corporate executives.
The Numbers
The annual accounts released in December 2023 for Robey Warshaw, the boutique UK advisory firm co-founded by Sir Simon Robey, revealed that he earned £20.4 million in the last financial year, solidifying his position as one of Europe’s highest-earning dealmakers. The report underscores the firm’s ongoing success in securing advisory mandates for mergers and acquisitions in the UK, even amid a global downturn in dealmaking that has led larger financial institutions to cut staff and reduce bonuses.
For the year ending March 2023, Robey Warshaw’s operating profits increased by 5.7 per cent to £31.8 million, while revenues experienced a notable 15.8 per cent rise, reaching £46.1 million. Outstanding deals contributing to these figures include the £2.5 billion acquisition of Chelsea Football Club, United Health Group’s £1.2 billion purchase of health information supplier EMIS, and HSBC’s £1 rescue deal to acquire Silicon Valley Bank UK.
During this period, Robey Warshaw also played a role in assisting Microsoft with the regulatory clearance process for its $75 billion purchase of Activision, which was successfully cleared in October.
The filings further revealed that the highest-paid partner at the firm earned £20.4 million, marking an increase from £17.2 million the previous year. While the accounts did not specify the partner, it is confirmed to be Sir Simon Robey, according to sources familiar with the matter.
Since its establishment in 2013, Sir Simon Robey, the former co-head of global M&A at Morgan Stanley, has earned over £170 million. The firm’s other founding partners include Simon Warshaw, the former head of investment banking at UBS, and Philip Apostolides, a former Morgan Stanley banker.
Structure
The organisational structure of Robey Warshaw is that of a limited liability partnership, exempting the group from tax liability on its profits. Each partner is responsible for taxes on their respective shares in this structure. Even though the four partners do not receive a salary, the 14 employees of the firm experienced an increase in total wages from £6.7 million in the previous year to £9.4 million. This highlights the unique financial arrangements within the firm, where profits are attributed to partners, and the wage structure applies to the remaining employees.
As one of the most specialised and successful investment groups in the U.K., Robey Warshaw always looks upwards. It will be exciting to see what deals they can lock in and what waves they make in investment banking in the coming years.
