Marex, a global financial services platform based in London, has agreed to acquire Cowen’s legacy prime brokerage and outsourced trading business, as part of its plans to expand its financial services offering. The deal should be closed by the end of the year.
BEST EXECUTION broke the news in May that Cowen’s prime brokerage and oiutsourced trading unit was planning to leaved its parent, TD Cowen, following the acquisition by TD Bank.
Led by joint heads Michael Rosen and Jack Seibald, TD Cowen’s prime brokerage unit has always had an independent and strongly entrepreneurial spirit – and within Cowen, was left largely to its own devices. There were rumours that the team has been chafing under its new leadership – but according to Dan Charney, vice chair of TD Cowen and co-head of global markets, the move had been planned from the start. “The divestiture of Cowen Prime was planned as a part of the acquisition of Cowen by TD earlier this year,” he said in a statement. “As TD continues to focus its efforts on growing TD Securities Prime Services, we are pleased to have found a great home for Cowen’s legacy Prime Services business in Marex, bringing significant opportunities for both businesses.”
The prime brokerage business, which was originally founded by Rosen and Seibald as Concept Capital, was bought by Cowen in 2015. The co-founders retained substantial control over the division, which may have led to the ease of its transition to a new parent.
The transaction is expected to complete by the end of the year, subject to “customary closing conditions” and regulatory approvals.
Marex has been looking to boost its own profile in the capital markets space recently, having taken on the Marex group name after Marex Financial bought energy broker Spectron Group back in 2011. The Cowen acquisition will be branded Marex Prime Services and Marex Outsourced Trading, and will become part of Marex’s capital markets business, which was formed in 2022 following its acquisition of ED&F Man Capital Markets. Plans are for a full service offering across equities, fixed income, FX, rates and financing, through both direct and introduced prime brokerage – complementing Marex’s existing clearing business.
Marex Outsourced Trading will provide trading and execution services to hedge fund and traditional investment manager clients as well as family offices and will also leverage the clearing capabilities of Marex.
The acquired business will continue to be led by Jack Seibald and Michael Rosen and includes some 160 employees across eight offices worldwide.
Ian Lowitt, CEO of Marex, commented: “This transaction advances our strategy, increasing our capabilities to connect clients to markets in new ways across multiple geographies. Mike and Jack have built a terrific business, and its addition to Marex broadens the range of essential infrastructure we provide to clients, as well as creating opportunity for Marex to provide additional services to a new set of clients. Expanding our Capital Markets business also adds to our diversification and to the resilience of our franchise.”
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