Leading corporate finance advisory firm Clearwater has been acquired by an American investment bank, KeyCorp.
In an update the breaking news story yesterday, Mark Taylor, CEO, told TheBusinessDesk.com this morning that the Manchester-headquartered advisory firm will rebrand as Key ‘eventually’, but that the deal emerged after ten year partnership agreement with the US bank.
That relationship has now evolved into Key acquiring Clearwater’s UK operations as the US bank seeks to expand its investment banking and corporate finance arm in Europe.
The definitive agreement to acquire Clearwater Corporate Finance LLP marks Key’s strategic entry into the Western European market, expanding its ability to provide financial advisory services to institutional clients.
Clearwater, which swept the board in the regional Rainmaker Awards last year, was founded in Manchester and Nottingham in 2002 by experienced corporate finance advisers Michael Reeves and Phil Burns.
Its message from the deal is that it’s business as usual, and that the deal is to acquire the UK partnership only. The Clearwater network will continue to be affiliated and utilise the brand, but will remain financially independent.
Clearwater’s leadership stresses that the UK management team, board structure and business model will remain intact, with strategy and day-to-day decisions continuing to be driven from the UK. There will be no partner departures as part of the transaction, and the firm plans to invest further in its regional footprint, including searching for larger premises in Manchester and a new office in Leeds. Rebranding to Key will be a gradual, longer-term process, with the Clearwater name retained in the short term.
Michael Loudon, Clearwater
Partner Michael Loudon, currently the Rainmaker of the year, framed the transaction firmly as a long-term growth move built on an existing relationship, saying: “This is a 10‑year relationship where we’ve worked together and got to know each other – it’s an extension of that, not a fundamental change in how we run the business.”
He said there were opportunities to expand internationally as a result of the investment. “We see this the opportunity to turbo charge that collaboration across Europe as well. We see the benefits of us collectively being stronger, benefiting everyone across our team in Europe as well.”
Mark Taylor underlined that the deal should be seen as capital backing for a successful UK platform rather than an imposed takeover: “Technically it’s an acquisition, but it feels like an investment – they like our governance, our board and our model, and they want us to keep doing what we do while helping us grow.”
The transaction builds on a collaboration agreement established in 2020 between KeyBanc Capital Markets Inc. and Clearwater. This multi-year partnership has validated the strategic and cultural compatibility between the organisations. The agreement covers the UK entity with the intent of strengthening collaboration across Clearwater’s broader European network.
The combined platform will offer US-based private equity sponsors and corporate clients access to European acquisition targets and exit strategies, while providing European clients with access to the US M&A market.
“Years of collaboration with Clearwater has generated significant value for clients on both sides of the Atlantic,” said Randy Paine, President of Key Institutional Bank. “This transaction is the natural next step in the relationship and directly supports our institutional banking growth strategy.”
Taylor said in the statement released to the New York Stock Exchange yesterday: “This is a significant milestone for Clearwater UK’s growth story.
“Having partnered with Key for many years, we are confident that both organisations know each other well and that our values and cultures closely align. Importantly, our service offering to clients and core market will remain unchanged, only enhanced.”
The transaction is subject to required regulatory approvals, including approval by the UK Financial Conduct Authority, and customary closing conditions and is expected to close in the second half of 2026.
KeyBanc Capital Markets is serving as exclusive financial advisor to KeyCorp and Davis Polk & Wardwell LLP is acting as transaction counsel. Clearwater UK is serving as exclusive financial advisor to Clearwater Corporate Finance LLP and Browne Jacobson is acting as transaction counsel.
Last year across the firm Clearwater’s fee income was c£50m on the back of completing 74 transactions with a combined value of over £6bn, comprising 41 M&A deals and 33 within its debt advisory practice.
Key sees the deal as a route to achieving its ambitions of growing its global advisory business to $1 billion from its current $780m income level.
