Hedge Fund Schonfeld Sells Clearing Biz

Nov 21 2006 | 10:43am ET

New York hedge fund and proprietary trading firm Schonfeld Securities has agreed to sell its in-house clearing business to Dallas-based Penson Worldwide.

Penson, which provides execution, clearing, settlement and custody services to securities firm, will acquire the Schonfeld business on an earn-out basis, with five annual payments based on net income from the acquired clearing operation. The first payment, almost $25 million in Penson stock, is to be made at the beginning of the year. The deal is expected to close by the end of the first quarter.

Schonfeld and the six firms it cleared trades for have signed long-term deals to keep their clearing business with Penson.


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note