UBS to snap up ABN Amro broking business
(Switzerland) Swiss bank UBS is set to boost its hedge fund portfolio by purchasing ABN Amro’s US prime brokerage operations for US$ 250 million.
The bank said the business, which is primarily focused on smaller US hedge funds, will provide a major boost to its "client pipeline" as the majority of the approximately 300 hedge funds are exclusive relationships.
UBS said the acquisition would complement its existing hedge funds service business which currently focuses on larger scale hedge funds.
"This transaction presents an opportunity to accelerate our hedge fund services business strategy by building relationships with clients at an early stage of their growth," UBS investment bank chairman and CEO John Costas said.
"Through this acquisition UBS will become the primary broker for a new group of hedge fund clients. Expanding into this new client segment is one of our key strategic priorities for growth," he said.
The business comes with 190 employees and has operations in New York, San Francisco, Dallas and Boston where it serves some 300 hedge fund clients.
The deal is expected to be closed in the fourth quarter once it has received regulatory approval.
UBS said the acquisition would complement its existing hedge funds service business which currently focuses on larger scale hedge funds.
"This transaction presents an opportunity to accelerate our hedge fund services business strategy by building relationships with clients at an early stage of their growth," UBS investment bank chairman and CEO John Costas said.
"Through this acquisition UBS will become the primary broker for a new group of hedge fund clients. Expanding into this new client segment is one of our key strategic priorities for growth," he said.
The business comes with 190 employees and has operations in New York, San Francisco, Dallas and Boston where it serves some 300 hedge fund clients.
The deal is expected to be closed in the fourth quarter once it has received regulatory approval.
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