Portugal's private bank Espírito Santo forms JV with Dabur promoters

Espírito Santo Investment Bank, a private Portuguese bank, has formed a joint venture with the Burman family, promoter of FMCG major Dabur India, for equity research brokerage businesses in India.

Lisbon-based Espírito Santo, the second largest private financial institution in Portugal in terms of net assets, said the new joint venture, named Espírito Santo Securities, would be its subsidiary.

Espírito Santo, which had 2010 revenues of €2.3 billion, did not disclose the shareholding pattern, but several media reported that Espírito Santo will hold a majority 75 per cent, while the Burman family will hold the remaining 25 per cent.

''Espirito Santo Investment Bank is delighted to work alongside such a highly respected local promoter family as the Burman's, with shared values and long-term commitment to India, and to building a successful investment banking business here,'' said Jose Maria Espirito Santo Ricciardi, CEO of Espírito Santo.

The JV, which will focus on institutional equity research and also expand into businesses like brokerage and investment banking, will be headed by Nick Paulson Ellis, the co-founder of equity research firm Clear Capital, which was later acquired by the UK-based securities firm Execution Noble.

Espírito Santo, which holds a controlling stake in Execution Noble, said the JV will incorporate the team in India (currently held indirectly by Espírito Santo), that produces objective institutional equity research for leading asset management institutions investing in India.

''With the Burman family, a broader, stronger business can be developed, initially extending the brokerage capability and then extending the investment banking proposition for clients over time,'' it said in a statement.

''We are honoured to be partnering with the Espirito Santo Investment Bank. We have had the good fortune of partnering with some of the most prominent organisations globally and feel we have achieved this again in this case. We look forward to building a great business together,'' said Mohit Burman, the driving force behind the Burman family business.