Avaloq has acquired fellow Swiss company, Derivative Partners, a structured products specialist, reports Martin Whybrow.
Derivative Partners acquired by Avaloq
The acquired niche company provides market information, tools, research and calculations for complex financial products for clients in Switzerland and the rest of Europe.
The financial details of the deal have not been disclosed. Avaloq is buying 100 percent of Zurich-based Derivative Partners AG and it will remain as an autonomous entity for the foreseeable future, with all staff retained.
Avaloq will incorporate the Derivative Partners’ offerings to complement its long-standing wealth management platform, bringing support for the independent valuation, trading and management for structured product and ETF markets.
Derivative Partners was established in 2000 and led by CEO, Daniel Manser, and COO, Patrick Walther. It claims 40+ market participants as customers, including issuers, private banks, asset managers and exchanges with valuations of option-linked securities and complex financial products. In addition, the firm calculates regulatory figures and portfolio management ratios as well as third-party valuation models and provides quantitative support for investment banking and trading divisions. Its range of services further includes product governance, life cycle management solutions and media services.
Juerg Hunziker, Avaloq’s Group CEO, describes Derivative Partners as “a perfect match for our strategic ambitions… the firm’s extensive consulting capabilities and know-how around structured products are a natural fit with Avaloq’s existing business service offering.” He continues: “We know that superior data models are absolutely critical for the future of the global financial services industry. The integration of Derivative Partners’ functionalities is a compelling and differentiating advantage for our Avaloq ecosystem and we will now build on this ability to handle the most complex financial instruments for the benefit of our clients and all our stakeholders.”
Manser adds: “By becoming part of the Avaloq group, Derivative Partners’ technology will be fast-tracked to a far larger audience.”