UBS Finally Sells O'Connor
Swiss bank UBS has now confirmed that it is selling its Chicago-based hedge fund unit O'Connor to US financial services company Cantor Fitzgerald.
In May this year, media reports had surfaced about talks with Cantor Fitzgerald. Now, the deal has been finalized.
According to a statement released on Wednesday, UBS Asset Management and Cantor Fitzgerald have agreed on the sale. All six investment strategies of O’Connor, which manage $11 billion in assets under management (AuM), will be transferred, along with the investment teams and other employees.
No details on the purchase price have been disclosed. UBS stated that it expects an «immaterial gain» upon completion of the transaction. The closing is anticipated in the fourth quarter of 2025.
Long-Term Partnership
The two firms will work closely to ensure a seamless transition for clients. In addition, UBS Asset Management and Cantor Fitzgerald have agreed on a long-term commercial partnership.
Following the sale, UBS will continue to be one of the leading providers of alternative investments, with over $440 billion in assets under management across the Unified Global Alternatives, Global Real Assets, and Credit Investments Group business areas.
Arrival of the «Sneaker Bankers»
UBS acquired O'Connor more than 30 years ago. In 1992, the then Swiss Bank Corporation (SBC) purchased the Chicago-based derivatives boutique. The firm was known for its «sneaker bankers» such as David Solo.
The image of the «sneaker bankers,» who were highly favored at the time by UBS – or rather, SBC – CEO Marcel Ospel, alluded to a more unconventional, informal dress code and a pragmatic, risk-embracing working style.
