Dundee Capital Markets is the latest investment bank to be affected by layoffs as the firm restructures in the aftermath of DundeeWealth Inc.'s sale to Bank of Nova Scotia.
Going forward, Dundee Capital Markets will target the resource sector. To do that, the firm has let go of 16 people, including research analysts who cover technology and bio-tech as well as portfolio strategy . Sales and trading staff who cover these sectors have also been let go.
Dundee says the restructuring will lead to a "natural realignment" with the other Dundee companies, most notably Dundee Precious Metals Inc., which acquires and develops precious metals properties.
Dundee Capital Markets will soon operate as publicly traded standalone company with Dundee Corp., which is controlled by Ned Goodman, as the main shareholder. The firm expects the spin-out to occur before closing of the DundeeWealth-Scotia transaction.
The realignment with resources is similar to National Bank Financial's restructuring. Outside of Quebec, NBF is now looking to target mid-cap resource firms. In doing so, both NBF and Dundee hope they can tap into a resource market that has been extremely hot of late.