Dragon saves Akamai

13 March 2008

2 minute read

James Caan looks set to save the day at Akamai. Is the need for a cash injection a nasty omen for other financial services recruiters?

James Caan, an entrepreneur and one of the investors on Dragon's Den, is considering putting an unspecified amount of cash into the UK business of Akamai Financial Markets, which seems to have come perilously close to hitting the buffers.

In what may yet be seen as the golden age of financial services recruiting, Akamai (formerly known as Alexander Mann Financial Markets), expanded its operations fast and furiously.

Between 2006 and 2007 it opened new offices in Singapore, Tokyo and Dubai, and added a raft of new consultants and researchers - seven were added in London last September alone.

More recently, however, there have been indications that all was not well in the Akamai empire. Shares in holding company Hat Pin were suspended from Aim in February following revelations of accounting irregularities at a subsidiary.

Bonuses at Akamai have still not been paid for last year, and one consultant says there was concern that February's salaries wouldn't be paid either. In the event, they were, and a spokesman for the company (talking before Caan's intervention), said salaries have also been guaranteed for March.

A spokesman for Hat Pin was unable to comment on Caan's investment.

Caan, a veteran recruitment industry investor, was one of the original investors in Akamai. He says: "I founded this business in 1985 and the people I put in to run it 10 years ago are still there. I back good people and this business has a good professional and stable team. I am therefore considering my options with regards to acquiring this business."

AUTHORSarah Butcher

Global Editor

An
Anon, seasoned 20+ years recru
17 April 2008
Told you so!!! I see Akamai business in Dubai has been sold for 1 to Hexagon.....says it all.
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Th
The Don
12 April 2008
Employees are suppose to be the greatest asset of any firm, clearly this is not the case...The man responsible behind the scene should be black listed in this industry.
I say get out while you can and bring all your clients with you.
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in
insider 2
17 March 2008
stock...that ole chestnut -
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In
Insider
17 March 2008
Interesting to see whether Caan will now pay bonuses - more likely that he'll give everyone stock, which you can bet won't go down very well.
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an
anon
14 March 2008
The writing was on the wall when the shares were suspended on aim - why would anyone in this climate look to make a cash injection into thwat is a clearly failed business. The costs of being a ppublic company in todays market dont leave much margin for errot - the employees will be the ones who suffer in this. afterall an investor, will seek a return - in a declining market how will this be possible. The good will of the employees will be lost and if there is anyone in the company with a ounce of commercial acumen they will walking out the door asap. Recruitment firms are only as good as the people in them - if those people are disenfranchised there really is no future. I also seem to rememeber that Caan was bought out of the original alexmann by share sale to 3i - however from what i have been told this was consdired neccessary to take the company forward - as the management style was stopping sustainable growth.
I iwsh all the consultants well - but what firm stands a chance by reverting to old management, no doubt bundles of debt and consultants who wish thet were elsewhere in a market thats getting tougher by the day..
good luck you will need it -
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