Dawnay, Day is hoping to capitalise on turmoil that has hit the brokerage sector in recent months by launching an integrated investment banking business.

The privately-owned property and financial services group, run by Peter Klimt and Guy Naggar, is merging its existing corporate finance and corporate broking businesses to form Dawnay, Day Investment Banking (DDIB).

Co-led by Adam Pollock, the ex-head of equity capital markets at Teather & Greenwood, the company will look to benefit from the market downturn to bring in new clients and staff.

“We are counter-cyclical investors,” Mr Naggar said. “We go into a market when it is not at its peak because it is only then that you can attract the best talents.”

Dawnay, Day’s corporate finance business is small, with turnover of £5m last year compared with £87.5m at Numis and £234m at Collins Stewart.

Mr Naggar conceded that DDIB could well lose money in its first year given market conditions. But he also believed money could be made by building up the company now so it would be in a position to profit later.

DDIB will be 51 per cent owned by Dawnay, Day with management owning the rest. Mr Naggar declined to comment on how much the company was investing in the new venture.