In a significant move within the financial sector, Cantor Fitzgerald LP has announced its acquisition of UBS Group AG’s O’Connor hedge fund unit, a Chicago-based alternative investment platform with approximately $11 billion in assets under management (AUM). The deal, revealed on May 28, 2025, marks a strategic expansion for Cantor Fitzgerald’s asset management division and signals a shift in UBS’s focus as it continues to streamline operations following its 2023 merger with Credit Suisse. This acquisition not only strengthens Cantor Fitzgerald’s position in the alternative investments market but also returns O’Connor to the leadership of one of its founding members, Bill Ferri, who joined Cantor Fitzgerald in 2022 after a 25-year tenure at UBS.
A Transformative Acquisition for Cantor Fitzgerald
The acquisition of O’Connor, which specializes in hedge funds, private credit, and commodities, represents a bold step for Cantor Fitzgerald Asset Management (CFAM). With $14.8 billion in assets already under management across interval funds, ETFs, and non-traded REITs, Cantor Fitzgerald is poised to become a stronger player in the hedge fund space. The addition of O’Connor’s $11 billion in AUM, spread across six investment strategies, significantly bolsters CFAM’s capabilities in relative value investing and risk management, areas where O’Connor has built a strong reputation since its founding in Chicago in 1977.
Brandon Lutnick, Chairman of Cantor Fitzgerald and son of former CEO and current U.S. Commerce Secretary Howard Lutnick, described the deal as “transformational” for CFAM. “Acquiring O’Connor is a unique opportunity to deliver world-class hedge fund, private credit, and commodities investments to clients globally,” said Bill Ferri, head of Cantor Fitzgerald Asset Management. Ferri’s deep familiarity with O’Connor, where he was a key founder and served as head of Americas for UBS Asset Management, positions him to lead the integration of O’Connor’s investment and support teams into Cantor Fitzgerald’s operations. Upon the deal’s expected closure in the fourth quarter of 2025, O’Connor will operate as a distinct alternatives business within CFAM, maintaining its focus on specialized strategies.
UBS’s Strategic Shift and the Sale of O’Connor
For UBS, the sale of O’Connor aligns with its broader strategy to focus on core areas where it can achieve scale and maximize investor value. UBS Asset Management, which oversees $1.8 trillion in assets, has been under pressure to reduce riskier businesses amid stricter capital requirements in Switzerland. The divestment of O’Connor, acquired by UBS’s predecessor Swiss Bank Corporation in 1992, reflects a continuation of UBS’s efforts to streamline its operations since its merger with Credit Suisse. UBS expects to recognize an “immaterial gain” from the transaction, though specific financial terms of the deal have not been disclosed.
UBS and Cantor Fitzgerald also plan to establish a long-term commercial arrangement, ensuring that O’Connor’s investment products continue to be offered to UBS’s wealth management clients. This partnership allows UBS to maintain access to O’Connor’s expertise in alternative assets while redirecting its focus to other strategic priorities. “We remain committed to delivering differentiated alternatives capabilities that drive results,” said Aleksandar Ivanovic, President of UBS Asset Management.
O’Connor’s Chicago Roots and Legacy
O’Connor, originally founded as O’Connor & Associates in Chicago, has a storied history in the hedge fund industry. Known for its expertise in derivatives and relative value investing, the firm was acquired by Swiss Bank Corporation in 1992, before the latter merged with Union Bank of Switzerland to form UBS in 1998. Over the decades, O’Connor has grown into a prominent alternatives platform, managing $11 billion across hedge funds, private credit, and commodities. Its focus on risk management and innovative investment strategies has made it a trusted name among institutional and high-net-worth investors.
The return of O’Connor to the leadership of Bill Ferri, one of its early founders, adds a layer of significance to the acquisition. Ferri’s 25-year tenure at UBS, during which he helped build O’Connor into a leading alternatives platform, ensures continuity and expertise as the business transitions to Cantor Fitzgerald. The move also brings O’Connor back to its Chicago roots, ending more than three decades of Swiss ownership.
A Growing Appetite for Alternative Investments
The acquisition comes at a time of heightened investor interest in alternative assets, driven by market volatility and the search for diversified returns. Hedge funds, private credit, and commodities have become increasingly attractive to investors seeking to hedge against inflation and geopolitical uncertainties. Cantor Fitzgerald’s move to acquire O’Connor positions it to capitalize on this trend, expanding its offerings in a competitive market. The firm’s recent ventures, such as its $2 billion Bitcoin-backed lending initiative, further demonstrate its commitment to innovative and high-growth investment opportunities.
For Cantor Fitzgerald, the acquisition is part of a broader strategy to scale its asset management business under the leadership of Brandon Lutnick. The firm has been actively expanding its market presence, with recent analyst coverage reflecting confidence in its growth potential. For example, Cantor Fitzgerald has maintained positive ratings on companies like Aurora Innovation and CyberArk, signaling its active engagement in high-growth sectors. The addition of O’Connor’s expertise and assets further strengthens its competitive edge in the financial services industry.
Implications for the Hedge Fund Industry
The sale of O’Connor is indicative of broader trends in the hedge fund industry, where consolidation and strategic realignments are becoming more common. While hedge fund deals are relatively rare, they are gaining frequency as firms seek to optimize their portfolios and adapt to changing market dynamics. UBS’s decision to divest O’Connor reflects a strategic pivot toward less capital-intensive businesses, while Cantor Fitzgerald’s acquisition underscores its ambition to become a leading player in alternative investments.
The transaction is subject to regulatory approvals and other customary closing conditions, with an expected completion in Q4 2025. As the deal progresses, industry observers will be watching closely to see how Cantor Fitzgerald integrates O’Connor’s operations and leverages its expertise to drive growth. The move also raises questions about the future of UBS’s alternatives business and how it will continue to serve its wealth management clients through its partnership with Cantor Fitzgerald.
Looking Ahead
The acquisition of O’Connor by Cantor Fitzgerald marks a pivotal moment for both firms. For Cantor Fitzgerald, it represents a significant step toward becoming a powerhouse in alternative investments, with $11 billion in new assets and a team of seasoned professionals led by Bill Ferri. For UBS, the sale allows it to refine its focus while maintaining access to O’Connor’s capabilities through a strategic partnership. As the financial services industry continues to evolve, this deal highlights the growing importance of alternative assets and the strategic maneuvers firms are undertaking to stay competitive.
For investors and industry professionals, the acquisition underscores the opportunities and challenges in the hedge fund space. As Cantor Fitzgerald integrates O’Connor’s operations, its ability to deliver value to clients through innovative strategies and robust risk management will be critical. Meanwhile, UBS’s streamlined approach may set the stage for further divestitures or partnerships as it navigates a complex regulatory and market environment.
To learn more about Cantor Fitzgerald’s acquisition strategy, visit Reuters for detailed coverage of the deal. For insights into UBS’s strategic priorities, check Bloomberg for the latest updates on its asset management division.
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