NVM Private Equity is cashing in on the financial sector’s growing demand for recruitment services by backing the management buy-out of a London-based company.

Astbury Marsden, which specialises in providing professionals to the banking sector in the City, has been bought by two of its directors for £17.5 million.

NVM invested £5.6 million in the deal, which sees founder Paul Marsden sell his 80% share of the business. Marsden has since resigned as chief executive.

The buy-out was led by Jonathan Nicholson, who has worked for Astbury Marsden for the past nine years, and new chief operating officer Mark Cameron. The two re-invested all their current equity into the deal.

Cameron said as well as backing the deal, NVM has provided the funding needed to help management take advantage of the growing demand for its services in the banking sector.

Debt was provided by HSBC, while the legal issues of the deal were handled by Wragge & Co, Eversheds and emw law. Livingstone Partners and Deloitte advised on the financial aspects.

Astbury Marsden, which was established in 1995, provides candidates for permanent and temporary positions at blue chip organisations in the UK, the US and Asia. Its clients include Barclays, UBS, JPMorgan, Oliver Wyman and Virgin.