Prime broker Concept Capital Markets has agreed to acquire Alaris Trading Partners, which provides prime brokerage and other services to hedge funds.
The combined company will offer institutional brokerage services to hedge funds, asset managers and registered investment advisers globally. Alaris will be fully integrated within Concept by the end of the third quarter, according to a statement by the firms.
Alaris, which is rated in the annual Global Custodian Prime Brokerage Survey, announced in November 2010 that it had agreed to be acquired by I.A. Englander & Co., a derivatives brokerage firm. But in May the firms issued a statement saying they had annulled the agreement.
Both firms felt it was mutually beneficial to work together in an independent, more flexible framework allowing both firms to thrive while continuing to offer each other products and services at commercially beneficial rates, Stephen Tobias, president of IAE, said at the time of the annulment. Patrick Boyle, CEO and co-founder of Alaris, added, We are excited to keep growing the relationship and we all felt that the independence will allow faster growth and focus on the individual areas of expertise.
What transpired in the months since that announcement, and the extent to which IAE and Alaris have or will partner, remains unclear. But Alaris apparently has shifted away from the strategy to remain independent.
“Concept’s product offering, in particular its expertise in risk management, both on an intraday and end of day basis, gives us a service offering that positions us to better serve existing clients and now compete for larger ones, Boyle says of the Concept acquisition.
Jack Seibald, co-founder and senior managing director of Concept Capital, adds: “Bringing our two companies together will allow us to capitalize on each other’s best practices, enhance our already high level of customer service and provide our customers with an expanded offering.
The deal is subject to regulatory approval by FINRA.
(CG)