CORRECTED-Canadian investment bank Edgecrest puts itself up for sale - sources

(In 4th paragraph, corrects name of CFO to Beyleveldt, not
Beyleveldtm)
By John Tilak and Euan Rocha
TORONTO, July 24 (Reuters) - Canadian mining-focused
investment bank Edgecrest Capital has put itself on the auction
block, hurt by a prolonged downturn in the natural resource
sector that has hit fees and activity, according to two sources
familiar with the situation.
The move comes two years after Toronto-based Edgecrest,
which is led by investment banker David Beatty, opened shop. The
company acquired boutique dealer Stonecap Securities Inc and its
U.S. unit last year and made some hires earlier this year.
The news underscores the challenge many small and mid-market
investment firms encounter in Canada, as weak commodity prices
and higher costs amid increased regulatory scrutiny jeopardize
their ability to stay afloat.
Beatty did not immediately respond to requests for comment.
Edgecrest's chief financial officer, Conrad Beyleveldt, said,
"I'm not in a position to be able to give you a confirmation of
that," referring to the sales process.
Commodity prices have fallen sharply in recent years, and a
plunge in bullion prices earlier this week exacerbated the pain
the industry is feeling. The volatility in prices has made it
harder for mergers and acquisitions, as well as capital
raisings, in the sector.
Beatty aggressively expanded the operation hoping to take
advantage of a potential turnaround in resource prices, the two
sources said.
Beatty has been disappointed that commodity prices did not
bounce back as expected and that he could not bring on board
some marquee names to boost Edgecrest's profile, said a third
source familiar with the fund.
Investment dealers or banks that may show potential interest
in Edgecrest include Paradigm Capital, Clarus Securities, Dundee
Securities and Mackie Research Capital, two of the sources said.
Edgecrest could also be looking at U.S. investment dealers
seeking to expand into the Canadian market, one of the sources
said.
Edgecrest has advised on mining and energy transactions, and
its divisions include investment banking, research, and sales
and trading, its website says.
In 2013, Stifel Nicolaus closed its Canadian unit and Fraser
Mackenzie Holdings wound down its operations. In 2014, Mackie
Research Financial agreed to acquire Jennings Capital Inc. Many
others have trimmed staff headcounts, shut down or merged with
other companies in the last three years.