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Cowen Group has completed an agreement to acquire prime brokerage service provider Concept Capital.
The transaction has been approved by the boards of directors of both companies, and, although financial terms have not been disclosed, Cowen Group has said it expects the acquisition to add to earnings-per-share in 2015.
The deal is expected to be finalised in Q3 2015, subject to customary closing conditions and regulatory approval.
Peter Cohen, chairman and CEO of Cowen Group, 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.”
President of Cowen Group Jeffrey Solomon added: “Concept Capital has proven to be a value added partner to its client base for a number of years. By joining forces, we have an opportunity to grow with Concept's existing clients and further develop its competitive offering for an underserved part of the emerging investment manager community that is looking to outperform.”
The acquisition comes after Cowen Group closed its equity finance desk in January, after just over two years in operation.
