Cantor Fitzgerald LP said it acquired hedge fund Fintan Partners LLC as the investment bank expands its money-management business.
Fintan, led by founder Alexander Klikoff, farms out money to fixed-income hedge funds, Cantor said today in a statement. The deal will bring Cantor’s assets under management and advisory to about $3 billion. Terms of the deal weren’t disclosed.
Howard Lutnick, chief executive officer of Cantor Fitzgerald and BGC Partners Inc., has been expanding into hedge funds, money management and real estate as commissions fall in his firms’ core business of trading stocks and bonds for banks and institutional investors. Dave Goldfarb, the former chief strategy officer of defunct investment bank Lehman Brothers Holdings Inc., joined Cantor in 2012 and is now head of asset management.
The fund-of-funds business will use Cantor’s resources to pick the best managers, Lutnick said today in an interview on Bloomberg Television. “You know the smart ones from the ones who are just going with the pack,” he said.
Before founding Redwood City, California-based Fintan in 2005, Klikoff managed the hedge-fund portfolio at Stanford University’s endowment. According to an SEC filing, Fintan had $960 million under management as of Nov. 1. The firm favors smaller specialist managers and emerging strategies, according to Fintan’s website.