Key Takeaways
- • Cantor Fitzgerald Investment Advisors (CFIA) has been engaged as the new manager of Cadogan Management's fund-of-hedge-funds vehicles, following board approval of investment management agreements across certain Cadogan-managed investment vehicles.
- • Cadogan Management is shuttering its operations and handing its business to Cantor Fitzgerald as a strategic transition, driven by redemption pressures facing the established fund-of-funds firm.
- • Key members of Cadogan's investment and client service teams have joined Cantor, enabling seamless continuity of operations and client relationships.
- • Cantor Fitzgerald has expanded its headcount by more than 200 professionals in 2011, with notable growth in credit trading, leveraged loans, and fixed-income sales, positioning itself as a broad-based alternative asset manager.
- • The transaction strengthens Cantor's alternative investment management and advisory capabilities, enabling the firm to serve institutional investors and high-net-worth clients globally while advancing its cross-market capital structure strategy and fixed income and equity capital markets businesses.
Summary
The transaction reflects Cantor Fitzgerald's significant expansion throughout 2011, marked by the addition of more than 200 professionals across multiple business lines, particularly in credit trading, leveraged loans, and fixed-income sales. According to Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co., the firm is making "great strides across a broad range of businesses" despite volatile market conditions, and remains "committed to being a leading provider in the alternative asset management and advisory space."
Cantor Fitzgerald intends to leverage this acquisition to build out comprehensive alternative investment capabilities serving both institutional and high-net-worth investors globally. The transaction is consistent with Cantor's stated strategy of pursuing a cross-market capital structure approach while expanding its fixed income and equity capital markets and investment banking businesses throughout 2012. By integrating Cadogan's operations and talent, Cantor aims to strengthen its competitive position in the alternative asset management space while broadening its service offerings to clients worldwide.
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