Marex agrees to acquire Cowen’s legacy prime brokerage and outsourced trading businessSeptember 22, 2023
Marex, the diversified global financial services platform, today announces that it has agreed to acquire Cowen’s legacy prime brokerage and outsourced trading business, as it continues to grow and diversify its offering and its client base. The transaction is expected to complete by the end of the year, subject to customary closing conditions, including regulatory approvals.
Cowen’s legacy prime brokerage and outsourced trading business is a leading service provider, offering a full range of services including multi-asset-class custody, high and low touch execution, financing solutions, security lending, and related technology solutions, and capital introduction.
The acquisition bolsters Marex’s provision of essential market infrastructure that connects clients to markets and also provides it with an additional established client base of asset managers.
The transaction further diversifies Marex’s business as it continues to expand into financial market products and services, significantly extending its offering and asset class coverage. The operations acquired will branded Marex Prime Services and Marex Outsourced Trading, and will become part of Marex’s Capital Markets business, which was formed in 2022 following the acquisition of ED&F Man Capital Markets, to consolidate its operations in the financial markets and provide a full service offering in equities, fixed income, FX, rates, and financing.
Marex Prime Services operates both a direct and introduced prime brokerage business. This will be complementary to Marex’s clearing offering, by leveraging Marex’s extensive, global multi-asset class direct clearing capabilities. 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.”
Dan Charney, Vice Chair, TD Cowen and Co-Head of Global Markets, commented: “The divestiture of Cowen Prime was planned as a part of the acquisition of Cowen by TD earlier this year. As we continue to focus our 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.”