ConvergEx has agreed to acquire NorthPoint Trading Partners in order to offer small and medium sized hedge funds access to introducing prime brokerage services.
The deal is expected to close shortly with prime brokerage services being provided through NorthPoint’s high-touch service model and existing clearing and custody agreements.
Joseph Velli, chairman and chief executive officer of ConvergEx Group, said in a statement, “ConvergEx has well‐established execution and technology relationships with many of the world’s large hedge funds and we understand the nuances of what hedge fund managers need to succeed. This acquisition is a natural extension to those relationships and 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.”
He continued, “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.”
NorthPoint chief executive officer Douglas Nelson and president Michael DeJarnette will continue in their respective positions and the firm will continue to be based in Atlanta.
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. We are all thrilled to have joined the ConvergEx family. Together we believe we can offer the next generation of boutique prime brokerage services.”