Cowen presses ahead with prime expansion
06 August 2015 New York
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Cowen Group has continued its acquisition spree in the prime brokerage space with the purchase of Conifer Securities.
The deal to acquire Conifer Securities, the prime services division of Conifer Financial Services, will close in Q3 of this year. The terms of the agreement were not disclosed.
The financial services group also recently agreed a deal to acquire prime brokerage service provider Concept Capital. That acquisition is expected to close in Q3.
Jeffrey Solomon, president of Cowen Group, said of the deals: “Conifer Securities’s services are well-respected among emerging hedge funds and established family offices, segments historically underserved by the market. Following our recent announcement of an agreement to acquire Concept Capital, today’s announcement will extend the combined organisation’s execution and prime brokerage capabilities.”
“Once the acquisitions are complete, we will have established a solid footprint in the emerging manager space with over 400 new client relationships. This announcement validates our commitment to delivering products that help clients outperform. We see a compelling opportunity to advance the prime brokerage business, further grow our equities market share and gain operating efficiencies.”
William Byrne, managing director at Conifer Securities, added: “We are excited to join Cowen Group. With our clients at the forefront of everything we do, we will ensure that the transaction benefits existing client accounts and the manner in which clients are served.”
The addition of Concept Capital, which boasts a staff or more than 80 in multiple offices, will allow Cowen Group to better serve investment managers, according to Cowen chairman and CEO Peter Cohen.
He said: “Given the changing prime broker landscape, many investment managers are looking for alternative prime solutions and there are a limited number of organisations offering a similar kind of value proposition as Concept Capital on Cowen’s platform.”
“Combining Concept Capital with Cowen’s business will allow us to better service these funds by providing focused prime broker services, supported by non-conflicted trade execution and world-class equity research.”
Cowen’s brokerage business is enjoying higher revenues this year, earning $34.9 million in revenue during Q2 2015, a 4 percent increase on the previous year, excluding revenue associated with the stock loan business, which it decided to wind down in late 2014.
The deal to acquire Conifer Securities, the prime services division of Conifer Financial Services, will close in Q3 of this year. The terms of the agreement were not disclosed.
The financial services group also recently agreed a deal to acquire prime brokerage service provider Concept Capital. That acquisition is expected to close in Q3.
Jeffrey Solomon, president of Cowen Group, said of the deals: “Conifer Securities’s services are well-respected among emerging hedge funds and established family offices, segments historically underserved by the market. Following our recent announcement of an agreement to acquire Concept Capital, today’s announcement will extend the combined organisation’s execution and prime brokerage capabilities.”
“Once the acquisitions are complete, we will have established a solid footprint in the emerging manager space with over 400 new client relationships. This announcement validates our commitment to delivering products that help clients outperform. We see a compelling opportunity to advance the prime brokerage business, further grow our equities market share and gain operating efficiencies.”
William Byrne, managing director at Conifer Securities, added: “We are excited to join Cowen Group. With our clients at the forefront of everything we do, we will ensure that the transaction benefits existing client accounts and the manner in which clients are served.”
The addition of Concept Capital, which boasts a staff or more than 80 in multiple offices, will allow Cowen Group to better serve investment managers, according to Cowen chairman and CEO Peter Cohen.
He said: “Given the changing prime broker landscape, many investment managers are looking for alternative prime solutions and there are a limited number of organisations offering a similar kind of value proposition as Concept Capital on Cowen’s platform.”
“Combining Concept Capital with Cowen’s business will allow us to better service these funds by providing focused prime broker services, supported by non-conflicted trade execution and world-class equity research.”
Cowen’s brokerage business is enjoying higher revenues this year, earning $34.9 million in revenue during Q2 2015, a 4 percent increase on the previous year, excluding revenue associated with the stock loan business, which it decided to wind down in late 2014.
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