Cowen Group Acquires Mini-Prime Broker Concept Capital

Cowen Group has agreed to acquire Concept Capital, a mini prime broker, a deal set to close in the third quarter of this year.

Serving as a mini prime broker, also known as an introducing broker to smaller hedge fund managers, the acquisition will provide Cowen Group its first venture into the prime brokerage business, providing a client base that have largely been dropped by banks due to new capital intensive regulations.

Details of the transaction were not disclosed.

“Given the changing prime broker landscape, many investment managers are looking for alternative prime solutions and there are a limited number of organizations offering a similar kind of value proposition as Concept Capital on Cowen’s platform,” says Peter Cohen, chairman and CEO, Cowen Group.

Cohen also says the acquisition will allow Cowen Group to provide focused prime broker services, trade execution and research.

“By joining forces, we have an opportunity to grow with Concept’s existing clients and further develop its competitive offering for an under served part of the emerging investment manager community that is looking to outperform,” says Jeffrey Solomon, president of Cowen Group.