UBS has expanded its existing structured products capabilities by acquiring Luxembourg Financial Group (LFG), a structured products boutique and specialist asset manager, for a total consideration of EUR25 million. The transaction is expected to close in the second quarter of 2011 subject to all regulatory approvals.
Under the terms of the agreement, UBS has agreed to acquire 100 per cent of the shares of LFG Holdings S.A., the parent company. The LFG Group will form part of UBS’s Global Equities division within the Investment Bank and will be an important building block in achieving the division’s strategic aim of expanding its Investment Products offering for its Global Equity Derivatives and Global Synthetic Equities businesses.
This acquisition will further augment the bank’s client focused, flow trading capabilities within Global Equities as well as enhance its current structured products capabilities.
Yassine Bouhara (pictured), Co-Head of Global Equities at UBS says: “UBS already offers a comprehensive range of structured products across the Investment Bank, a client offering which has grown organically over the years, so we are not new to this market in any sense. Continuing with our ongoing client focused strategy, the acquisition of LFG gives UBS the opportunity to build on what already exists within the bank and expand further.
“We are acquiring a company with a well respected management team and their top tier structured product platforms. That strengthens our ability to deliver an expanded, multi-asset class product range for our clients."
Johan Groothaert, CEO of LFG, says: “We are delighted to be joining the UBS family where we will together be focused on providing innovative, client-tailored solutions that set a new standard of service”.
LFG was founded in 2007 and has offices in Luxembourg and London. LFG is a privately owned company with 22 employees.