UBS is in advanced discussions with Cantor Fitzgerald over a deal for its hedge fund platform, O’Connor, which operates within UBS Asset Management according to a report by Bloomberg citing unnamed sources close to the matter.
The potential transaction may involve a revenue-sharing arrangement and forms part of UBS’s broader strategy to streamline operations following its high-profile acquisition of Credit Suisse in 2023.
O’Connor is one of the bank’s legacy alternative investment platforms, with the business having originally abeen cquired by Swiss Bank Corporation in 1992, before becoming part of UBS through its 1998 merger with Union Bank of Switzerland. The unit has long maintained a reputation for discretionary and multi-strategy hedge fund investing.
UBS declined to comment on the reported talks, while Cantor Fitzgerald has not issued a statement.
A sale would mark a significant move for Cantor Fitzgerald, which has ramped up its ambitions in both traditional and digital financial markets. Under the leadership of Chairman Brandon Lutnick, the firm recently agreed to acquire the US market-making business of Canaccord Genuity and also announced a $3.6bn digital asset initiative backed by Tether and SoftBank.
For UBS, shedding non-core operations like O’Connor aligns with its post-merger rationalisation plan, as the Swiss banking giant continues to integrate Credit Suisse’s businesses and sharpen its focus on scalable asset and wealth management divisions.
