UBS will transfer its hedge fund operations to Cantor Fitzgerald
Swiss bank UBS has announced the sale of its hedge fund, private credit, and commodities business, O'Connor, to financial services firm Cantor Fitzgerald. The deal, which is expected to close during the fourth quarter, subject to regulatory approvals and closing conditions, is a strategic move to significantly enhance Cantor Fitzgerald's asset management capabilities and broader growth efforts across its core businesses.
The acquisition includes $11 billion in assets under management, adding a robust alternatives platform to Cantor Fitzgerald's asset management arm (CFAM). According to Cantor Fitzgerald Chairman Brandon Lutnick, the acquisition of O'Connor is transformational for their asset management business.
Cantor Fitzgerald plans to grow and diversify its asset management capabilities by leveraging UBS O'Connor's alternatives investment platform. Post-deal close, O'Connor's investment and support teams will move to Cantor Fitzgerald, with Bill Ferri, a UBS veteran and founding member of the O'Connor business, now taking the helm as the global head of Cantor Fitzgerald asset management.
The specific growth strategies and plans following the acquisition include expanding asset management, broadening business growth, and diversifying and innovating in asset classes. Integrating O'Connor's alternatives platform is expected to bolster Cantor Fitzgerald's asset management business, allowing the firm to offer a wider range of investment products and tap into the alternatives space more deeply.
The acquisition supports Cantor Fitzgerald's broader corporate growth initiatives, leveraging the specialized investment expertise of the O'Connor team within the firm’s existing platform to enhance competitive positioning in financial services. Cantor Fitzgerald is also committed to investing in attractive growth businesses, as stated by Brandon Lutnick.
Cantor Equity Partners III, Inc., a blank check company sponsored by Cantor Fitzgerald, completed a significant upsized IPO raising $276 million (initially $240 million) in June 2025. This capital is likely to support the acquisition integration and future growth initiatives, indicating well-funded plans for expansion and capitalization on the acquisition’s potential.
The acquisition is part of Cantor Fitzgerald's ongoing efforts to diversify its asset management offerings and capitalize on alternative investments, which are increasingly important in asset management strategies today. In April, Cantor Fitzgerald's investment bank, Cantor, acquired Canaccord Genuity Group's U.S.-based wholesale market making business, further strengthening its position in the financial services industry.
UBS will recognize an immaterial gain from the sale, reflecting the bank's efforts to slim down operations following the 2023 Credit Suisse merger. The lender is also facing tougher capital requirements in Switzerland. However, with the acquisition of O'Connor, Cantor Fitzgerald is poised to make significant strides in the asset management industry, driving growth and innovation in the years to come.
The acquisition of UBS's O'Connor, which includes $11 billion in assets under management, is transformational for Cantor Fitzgerald's asset management business, reflecting their commitment to expanding and diversifying in the finance industry. Post-deal closure, Cantor Fitzgerald will leverage O'Connor's alternatives investment platform to broaden their business growth and innovate in asset classes, aiming to offer a wider range of investment products and strengthen their position in the financial services industry.
