ConvergEx, a global provider of investment and execution technology solutions to institutional clients, has signed a definitive agreement to acquire NorthPoint Trading Partners, an institutional brokerage and fund services company.
With this acquisition, ConvergEx will offer small and medium sized hedge funds access to a full range of top-tier introducing, also known as boutique, prime brokerage services through NorthPoint’s clearing and custody agreements.
However, NorthPoint will continue to be based out of Atlanta, Georgia and all of its clearing and custody arrangements, products, partnerships and projects will continue uninterrupted. ConvergEx said that it will introduce a range of additional products and services to NorthPoint clients that they can choose to employ, including a 24-hour global agency trading platform, commission management system and improved soft dollar services.
Douglas Nelson, CEO of NorthPoint and Michael DeJarnette, president of NorthPoint will continue in their respective roles at ConvergEx.
Joseph Velli, chairman and CEO of ConvergEx Group, said: “This acquisition enables us to offer smaller hedge funds wide-ranging services and expertise embedded in the high-touch service model that is so important to them. Additionally, as we integrate this new business line, NorthPoint’s clients will reap many benefits from leveraging ConvergEx’s state-of-the-art technologies and products.”
Mr Nelson said: “NorthPoint offers services that are very much in high demand. In order to be competitive and thrive, start-up and mid-sized hedge funds need access to powerful and customized boutique prime brokerage services, and in the past they have had difficulty accessing these services through traditional prime brokerage arrangements.”
The deal is expected to close in the near term. Financial terms of the agreement were not disclosed.
