Cowen Group and Kellner Capital do securities lending business deal
01 October 2012 New York
Image: Shutterstock
Financial services firm Cowen Group has agreed to purchase KDC Securities from Kellner Capital.
New York-based KDC Securities is the securities lending business and broker-dealer subsidiary of hedge fund manager Kellner Capital.
Formerly called Kellner DiLeo & Company, the hedge fund manager rebranded in May as Kellner Capital and launched a new event-driven investment fund with more than $50 million in assets.
Kellner Capital has now agreed to sell KDC Securities to Cowen Group, which provides alternative investment management, investment banking, research, and sales and trading services through two business segments.
Ramius and its affiliates make up its alternative investment management business, while Cowen and Company is its broker-dealer.
The broker-dealer offers industry-focused investment banking for growth-oriented companies, domain knowledge-driven research, and a sales and trading platform for institutional investors.
The purchase of KDC Securities, which is subject to regulatory approvals and customary closing conditions, will be completed in Q4 2012.
The financial details of the deal were not disclosed.
Once the deal is completed, KDC Securities will be rebranded as Cowen Equity Finance Group. It will continue to be based in New York.
Rory Zirpolo, the head of securities lending at KDC Securities, will serve as managing director and head of the equity finance group. He will report to Cowen Group’s co-heads of equities, Tom O’Mara and Dan Charney.
Joining Zirpolo at Cowen Group are Barry Skarbek, Jill Mandarino, Stephen Grazioli and Richard DePaulis.
Jeff Solomon, CEO of Cowen and Company, said: “Kellner [Capital] and its securities lending team have built an impressive equity finance platform since the business was launched seven years ago. We believe the business is well positioned for future growth and is a strong complement to our existing sales and trading footprint.”
Zirpolo previously worked as managing director of prime services at Credit Suisse, where he was responsible for a $50 billion supply side securities lending business, before joining what was then Kellner DiLeo & Company in late 2010.
As a part of his role at Kellner Capital, Zirpolo works as the portfolio manager of KDC Alpha, a matched book securities lending portfolio.
When Zirpolo joined the hedge fund manager, Kellner said that he is “one of the most highly regarded professionals in the securities lending business”.
New York-based KDC Securities is the securities lending business and broker-dealer subsidiary of hedge fund manager Kellner Capital.
Formerly called Kellner DiLeo & Company, the hedge fund manager rebranded in May as Kellner Capital and launched a new event-driven investment fund with more than $50 million in assets.
Kellner Capital has now agreed to sell KDC Securities to Cowen Group, which provides alternative investment management, investment banking, research, and sales and trading services through two business segments.
Ramius and its affiliates make up its alternative investment management business, while Cowen and Company is its broker-dealer.
The broker-dealer offers industry-focused investment banking for growth-oriented companies, domain knowledge-driven research, and a sales and trading platform for institutional investors.
The purchase of KDC Securities, which is subject to regulatory approvals and customary closing conditions, will be completed in Q4 2012.
The financial details of the deal were not disclosed.
Once the deal is completed, KDC Securities will be rebranded as Cowen Equity Finance Group. It will continue to be based in New York.
Rory Zirpolo, the head of securities lending at KDC Securities, will serve as managing director and head of the equity finance group. He will report to Cowen Group’s co-heads of equities, Tom O’Mara and Dan Charney.
Joining Zirpolo at Cowen Group are Barry Skarbek, Jill Mandarino, Stephen Grazioli and Richard DePaulis.
Jeff Solomon, CEO of Cowen and Company, said: “Kellner [Capital] and its securities lending team have built an impressive equity finance platform since the business was launched seven years ago. We believe the business is well positioned for future growth and is a strong complement to our existing sales and trading footprint.”
Zirpolo previously worked as managing director of prime services at Credit Suisse, where he was responsible for a $50 billion supply side securities lending business, before joining what was then Kellner DiLeo & Company in late 2010.
As a part of his role at Kellner Capital, Zirpolo works as the portfolio manager of KDC Alpha, a matched book securities lending portfolio.
When Zirpolo joined the hedge fund manager, Kellner said that he is “one of the most highly regarded professionals in the securities lending business”.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
