JonesTrading is set to acquire Conifer Securities and operate the prime brokerage business as a subsidiary.
JonesTrading and The Conifer Group, parent company of Conifer Securities, have formed a strategic partnership whereby Conifer will leverage JonesTrading services as part of its expansion of fund administration and middle-office services, and JonesTrading will offer prime brokerage services to its clients.
As part of the deal, Conifer Group will obtain an equity stake in JonesTrading, and Jack McDonald, president and CEO of Conifer Group, will join the board of directors of JonesTrading.
The transaction is expected to close in the fourth quarter of 2012. Terms of the deal were not disclosed.
“As we looked at the landscape of growth opportunities for JonesTrading to serve our clients, we recognized the increased demand for a broader and deeper range of quality high touch services,” said William (Packy) Jones, Chairman and CEO of JonesTrading. “The businesses of JonesTrading and Conifer Securities are complementary, and the arrangement between our firms will not only make our respective clients’ trading more effective but will add value to the entire investment cycle. Jack McDonald will bring to our board expertise, insight and experience, which are critical to effectively building our franchise through the capabilities we will now provide.”
McDonald adds: “This partnership will provide a comprehensive and powerful set of tools that will enhance the superior trade execution services both firms currently provide. Separately, Conifer will continue to grow its fund administration and middle office services through high-quality service and leading technology, strengthening our market leading capabilities at an exciting time of industry expansion. I look forward to working with the JonesTrading team and contributing to the board’s continued business development initiatives.”
(CG)