The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Emerging markets: Exotix goes global to follow its dreams

Can a failing frontier markets brokerage transform itself into a full-service investment bank? Duncan Wales, head of Exotix, believes it can be done through the creation of a global partnership network – and so does his backer, Icap founder Michael Spencer.

global-network-780



When Duncan Wales agreed to head up Exotix in mid 2016, the firm was in a mess. Once a profitable niche brokerage focused on frontier markets bonds and distressed debt, it had gone steadily downhill after the financial crisis.

“Exotix was a trailblazer, but it allowed itself to fall behind,” says Wales. “It faced huge competition in its traditional space and it tried to diversify in difficult markets in a very challenging environment. It lost its way strategically.”

Founded in 1998, Exotix was originally an offshoot of broker-dealer Icap. In 2007, the group sold most of its stake in the firm to IPGL, the private investment vehicle of Icap owner Michael Spencer, to avoid being hit by punitive capital requirements. 

Over the next decade Exotix cycled through senior management at an alarming rate, with little to show for it. By 2014, the firm was in the red, and an initial restructuring attempt the following year failed to produce much in the way of results. 

Duncan-Wales-160x186
Duncan Wales

That is where Wales came in.




You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree