Latest news with #AleksandarIvanovic
Yahoo
4 days ago
- Business
- Yahoo
UBS Group's Arm to Divest O'Connor Business to Cantor Fitzgerald
UBS Group AG's UBS subsidiary, UBS Asset Management (Americas) LLC, has announced a definitive agreement to sell O'Connor, its hedge fund, private credit, and commodities business, to Cantor Fitzgerald as part of its ongoing strategy to streamline operations. The initial close of the transaction is expected during the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions. The sale includes six investment strategies with approximately $11 billion in assets under management. Upon closing the deal, O'Connor's investment and support teams will transition to Cantor Fitzgerald. Additionally, UBS Asset Management and Cantor Fitzgerald will work closely together to ensure a seamless transition for clients. As part of the agreement, UBS Asset Management and Cantor Fitzgerald will establish a long-term commercial arrangement, maintaining continuity for UBS Global Wealth Management clients. Following the sale, UBS will remain one of the leading alternative investment managers, with over $440 billion in invested assets across its Unified Global Alternatives, Global Real Assets, and Credit Investments Group businesses. Aleksandar Ivanovic, president of UBS Asset Management, stated, 'We have substantial growth ambitions and are focused on expanding our differentiated alternatives capabilities where we are positioned to win at scale. In deciding to sell O'Connor, we considered several factors, including its strategic fit and growth potential within UBS, and have been guided by the best interests of investors.' Ivanovic added, 'Our priority has been to select a buyer with complementary capabilities, culture and team, and we believe that Cantor Fitzgerald is strongly placed to take the O'Connor business forward.' Blake Hiltabrand, Global Head of O'Connor, stated, 'This marks a pivotal new chapter for our business. As a cornerstone of Cantor Fitzgerald's alternative investment platform, the O'Connor team is excited about the opportunity to invest in and expand our capabilities while staying true to our roots as fundamental investors.' The decision to divest the hedge fund unit aligns with UBS's overall strategy of streamlining its operations, focusing on its core operations following the acquisition of Credit Suisse in 2023. According to its business restructuring plans, it is likely to wind down its non-core and legacy portfolio and aims to reduce non-core and legacy risk-weighted assets to below $8 billion by the end of 2025 and around $2 billion by the end of 2026. In sync with its restructuring plan, in April 2025, UBS made a strategic partnership with 360 ONE WAM Ltd, one of India's leading wealth and asset managers. Under this arrangement, UBS will purchase warrants to acquire a 4.95% share and will sell its onshore Indian wealth business to 360 ONE, while clients based in Singapore will continue to be served by UBS Singapore. Through these efforts, the company is well-positioned to enhance the client experience and unlock further cost reductions toward the end of 2025 and into 2026 as it delivers on its ambition of $13 billion in gross cost savings by the end of 2026. Shares of UBS have dipped 2.4% against the industry's 21.7% growth in the past six months. Image Source: Zacks Investment Research Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This week, Citigroup Inc. C, through its subsidiary Citibank Europe Plc, announced that Citi Handlowy has announced an agreement to sell its consumer banking business in Poland to VeloBank S.A. (Velobank). This transaction aligns with Citigroup's broader strategy to exit consumer banking and strengthen its focus on core operations. The agreement involves the demerger of Citi Handlowy's consumer banking operations, including wealth management, micro business banking, credit cards, consumer loans, deposits, and assets under management, consumer clients of the brokerage business, branches, and other consumer-related assets to VeloBank. Notably, employees and branches of the consumer business of C will also transition to VeloBank S.A. upon completion of the transaction. Likewise, in February 2025, SEI Investments Co. SEIC agreed to divest its Family Office Service operations to Acquiline Capital Partners LP (Acquiline) for $120 million. The family office business of SEIC will continue to operate as Archway upon completion. Under the terms of the transaction, employees based in SEI's Indianapolis, Denver and Oaks offices, including key members of the leadership team, will transition to Aquiline along with the business. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C) : Free Stock Analysis Report UBS Group AG (UBS) : Free Stock Analysis Report SEI Investments Company (SEIC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
UBS Group's Arm to Divest O'Connor Business to Cantor Fitzgerald
UBS Group AG 's UBS subsidiary, UBS Asset Management (Americas) LLC, has announced a definitive agreement to sell O'Connor, its hedge fund, private credit, and commodities business, to Cantor Fitzgerald as part of its ongoing strategy to streamline operations. The initial close of the transaction is expected during the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions. Details of UBS's Divestiture Deal The sale includes six investment strategies with approximately $11 billion in assets under management. Upon closing the deal, O'Connor's investment and support teams will transition to Cantor Fitzgerald. Additionally, UBS Asset Management and Cantor Fitzgerald will work closely together to ensure a seamless transition for clients. As part of the agreement, UBS Asset Management and Cantor Fitzgerald will establish a long-term commercial arrangement, maintaining continuity for UBS Global Wealth Management clients. Following the sale, UBS will remain one of the leading alternative investment managers, with over $440 billion in invested assets across its Unified Global Alternatives, Global Real Assets, and Credit Investments Group businesses. Aleksandar Ivanovic, president of UBS Asset Management, stated, 'We have substantial growth ambitions and are focused on expanding our differentiated alternatives capabilities where we are positioned to win at scale. In deciding to sell O'Connor, we considered several factors, including its strategic fit and growth potential within UBS, and have been guided by the best interests of investors.' Ivanovic added, 'Our priority has been to select a buyer with complementary capabilities, culture and team, and we believe that Cantor Fitzgerald is strongly placed to take the O'Connor business forward.' Blake Hiltabrand, Global Head of O'Connor, stated, 'This marks a pivotal new chapter for our business. As a cornerstone of Cantor Fitzgerald's alternative investment platform, the O'Connor team is excited about the opportunity to invest in and expand our capabilities while staying true to our roots as fundamental investors.' Our Take on UBS Restructuring Efforts The decision to divest the hedge fund unit aligns with UBS's overall strategy of streamlining its operations, focusing on its core operations following the acquisition of Credit Suisse in 2023. According to its business restructuring plans, it is likely to wind down its non-core and legacy portfolio and aims to reduce non-core and legacy risk-weighted assets to below $8 billion by the end of 2025 and around $2 billion by the end of 2026. In sync with its restructuring plan, in April 2025, UBS made a strategic partnership with 360 ONE WAM Ltd, one of India's leading wealth and asset managers. Under this arrangement, UBS will purchase warrants to acquire a 4.95% share and will sell its onshore Indian wealth business to 360 ONE, while clients based in Singapore will continue to be served by UBS Singapore. Through these efforts, the company is well-positioned to enhance the client experience and unlock further cost reductions toward the end of 2025 and into 2026 as it delivers on its ambition of $13 billion in gross cost savings by the end of 2026. Zacks Rank & Price Performance of UBS Shares of UBS have dipped 2.4% against the industry 's 21.7% growth in the past six months. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Restructuring Efforts by Other Finance Firms This week, Citigroup Inc. C, through its subsidiary Citibank Europe Plc, announced that Citi Handlowy has announced an agreement to sell its consumer banking business in Poland to VeloBank S.A. (Velobank). This transaction aligns with Citigroup's broader strategy to exit consumer banking and strengthen its focus on core operations. The agreement involves the demerger of Citi Handlowy's consumer banking operations, including wealth management, micro business banking, credit cards, consumer loans, deposits, and assets under management, consumer clients of the brokerage business, branches, and other consumer-related assets to VeloBank. Notably, employees and branches of the consumer business of C will also transition to VeloBank S.A. upon completion of the transaction. Likewise, in February 2025, SEI Investments Co. SEIC agreed to divest its Family Office Service operations to Acquiline Capital Partners LP (Acquiline) for $120 million. The family office business of SEIC will continue to operate as Archway upon completion. Under the terms of the transaction, employees based in SEI's Indianapolis, Denver and Oaks offices, including key members of the leadership team, will transition to Aquiline along with the business. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report UBS Group AG (UBS): Free Stock Analysis Report SEI Investments Company (SEIC): Free Stock Analysis Report
Yahoo
5 days ago
- Business
- Yahoo
UBS to sell hedge fund business to Cantor Fitzgerald
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Swiss bank UBS will sell O'Connor, its hedge fund, private credit and commodities business, to financial services firm Cantor Fitzgerald, the bank said Wednesday. The deal will 'significantly bolster' New York-based Cantor Fitzgerald's asset management arm, adding $11 billion in assets under management, the acquiring firm said in its release. The transaction is expected to close during the fourth quarter, subject to regulatory approvals and closing conditions. Terms of the deal weren't disclosed. The bank said it will recognize an immaterial gain from the sale. The divestiture reflects UBS' effort to slim down operations following the 2023 Credit Suisse merger. The lender is also facing tougher capital requirements in Switzerland. 'In deciding to sell O'Connor, we considered a number of factors, including its strategic fit and growth potential within UBS, and have been guided by the best interests of investors,' said Aleksandar Ivanovic, president of UBS' asset management arm. 'Our priority has been to select a buyer with complementary capabilities, culture and leadership team.' The deal returns O'Connor to the purview of Bill Ferri, a UBS veteran and founding member of the O'Connor business. He's now the global head of Cantor Fitzgerald asset management. 'We believe our knowledge of and experience with O'Connor uniquely positions us to grow this business, focusing on attracting and retaining investment talent, investing in a flexible, unconstrained operating platform, and delivering attractive risk adjusted outcomes and best-in-class client service,' Ferri said. Post-deal close, O'Connor's investment and support teams will move to Cantor Fitzgerald, with O'Connor operating as a distinct alternatives business within Cantor Fitzgerald's asset management unit, the acquirer said. O'Connor capabilities will continue being offered to UBS global wealth management clients, and the asset management units of both the bank and Cantor Fitzgerald will establish 'a long-term commercial arrangement' as part of the agreement. 'The acquisition of O'Connor is transformational for our asset management business and demonstrates our commitment to investing in attractive growth businesses,' said Cantor Fitzgerald Chairman Brandon Lutnick in the release. 'With our leadership team's deep familiarity with O'Connor, we are well-positioned to build upon the business's strong foundation and drive its next phase of growth.' In April, Cantor Fitzgerald said its investment bank, Cantor, would acquire Canaccord Genuity Group's U.S.-based wholesale market making business. Cantor Fitzgerald is now majority owned by Howard Lutnick's children, after the former CEO and chairman became secretary of the Commerce Department and transferred his ownership stakes in the company. Recommended Reading Truist in talks to sell the rest of its insurance arm for $10B: report Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
13-03-2025
- Business
- Reuters
Exclusive: UBS considers sale of some real estate assets in asset management unit, sources say
LONDON, March 13 (Reuters) - UBS (UBSG.S), opens new tab is considering selling part of its asset management division that is largely focused on real estate investments, two people with knowledge of the matter told Reuters, as the bank looks to revamp the group's smallest business unit. The business area under review includes mainly Swiss real estate assets and, according to one of the people who declined to be named because the matter is private, could be worth less than $1 billion. In a June revamp of the asset management business under UBS veteran Aleksandar Ivanovic, the Zurich-based bank moved some of its real estate assets into a new unit where it is bringing together asset management and wealth products. Real estate investments left outside of the new unit are being considered for sale, the person said. Earlier this year, potential acquirers approached UBS bankers including Joseph Azelby, global head of real assets, to explore a deal, the person said. A spokesperson for UBS said the bank has substantial growth ambitions for its asset management division. "Asset Management is investing in its differentiated and scalable real asset capabilities, including its leading Swiss Real Estate business," the spokesperson said. The disposal would mark the latest effort by UBS to streamline its business in the wake of its 2023 takeover of Credit Suisse. UBS' asset management business swelled to $1.7 trillion following the acquisition of Credit Suisse, from $1.1 trillion in 2022, the Swiss bank's filings show. In February, Chief Financial Officer Todd Tuckner told analysts, without elaborating further, that the bank is considering "exits of non-strategic businesses" to improve the profitability of the asset management unit. UBS acquired Credit Suisse in a government-orchestrated rescue and has since been integrating businesses of its former rival and disposing of unwanted assets. Last year it sold Credit Suisse's securitised products Group to Apollo Global Management. About 8% of the $1.7 trillion under the asset management unit is invested in real estate and private markets, according to a UBS presentation earlier this year. Swiss real estate has been performing better than international real estate assets, benefiting from lower interest rates. Wealth management remains UBS' flagship business, making up more than half of total revenue.
