Global financial services platform Marex has agreed to acquire Cowen’s legacy prime brokerage and outsourced trading business, with the transaction expected to complete by the end of the year, subject to regulatory approval.
Cowen’s legacy prime brokerage and outsourced trading business offers 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 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 the acquisition of ED&F Man Capital Markets, to 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, which will be complementary to its clearing offering. 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.