Key Takeaways
- • Cantor Fitzgerald Investment Advisors (CFIA) assumes full investment management responsibility for Coast Asset Management's fund of hedge funds business, transitioning from a subadvisory arrangement to direct advisor role.
- • The transition encompasses Coast Diversified Funds and other multi-manager fund of hedge funds products, pending customary closing conditions and regulatory approvals.
- • Shawn P. Matthews, CEO of Cantor Fitzgerald & Co., emphasized the firm's commitment to alternative asset management and institutional distribution capabilities as competitive advantages in serving Coast clients.
- • Kidron Corporate Advisors provided financial advisory services to Coast Asset Management in structuring the transaction.
- • The deal expands Cantor Fitzgerald's alternative asset management platform and broadens its fund of hedge funds offerings to institutional and high-net-worth clients.
Summary
Cantor Fitzgerald Investment Advisors announced on October 24, 2012, its plan to assume full investment management responsibilities for Coast Asset Management's fund of hedge funds business. The transition represents a meaningful expansion of CFIA's alternative asset management platform and marks a shift from a subadvisory relationship to a direct advisory arrangement. Upon completion of customary closing processes, regulatory approvals, and client consent requirements, CFIA will become the investment advisor to Coast Diversified Funds and related multi-manager fund of hedge funds products.
CFIA has been providing investment management services to Coast Asset Management under a subadvisory arrangement prior to this agreement. The transition of client service and portfolio management responsibilities will occur systematically to ensure continuity for existing investors. The firm indicated that all necessary consents and approvals from stakeholders remain a condition to the transaction's final completion.
Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co., framed the acquisition within the firm's broader strategic positioning in alternative investments. He noted that CFIA's institutional expertise, distribution network, and capital markets capabilities position the firm to serve Coast clients with a customized investment approach. The statement emphasized Cantor Fitzgerald's competitive strengths in the institutional marketplace and its commitment to delivering advisory services tailored to client-specific needs.
Kidron Corporate Advisors, a boutique investment bank, provided financial advisory services to Coast Asset Management in connection with the transaction, underscoring the structured nature of the arrangement. The transaction reflects continued consolidation within the fund of hedge funds space, as smaller platform managers seek alignment with larger, better-capitalized institutional advisors capable of delivering comprehensive alternative asset services and broader distribution reach to institutional investors and high-net-worth clients.
CFIA has been providing investment management services to Coast Asset Management under a subadvisory arrangement prior to this agreement. The transition of client service and portfolio management responsibilities will occur systematically to ensure continuity for existing investors. The firm indicated that all necessary consents and approvals from stakeholders remain a condition to the transaction's final completion.
Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co., framed the acquisition within the firm's broader strategic positioning in alternative investments. He noted that CFIA's institutional expertise, distribution network, and capital markets capabilities position the firm to serve Coast clients with a customized investment approach. The statement emphasized Cantor Fitzgerald's competitive strengths in the institutional marketplace and its commitment to delivering advisory services tailored to client-specific needs.
Kidron Corporate Advisors, a boutique investment bank, provided financial advisory services to Coast Asset Management in connection with the transaction, underscoring the structured nature of the arrangement. The transaction reflects continued consolidation within the fund of hedge funds space, as smaller platform managers seek alignment with larger, better-capitalized institutional advisors capable of delivering comprehensive alternative asset services and broader distribution reach to institutional investors and high-net-worth clients.
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