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Advent seeks derivative-related investmentsPosted by Retirement on: 2005-09-16 12:43:48 in category:
401(k) [ Print | Permalink / 0 Comment(s) ] NEW YORK (Reuters) - Private equity company Advent International is seeking opportunities in firms specializing in niche investment instruments like derivatives, seen as a growth area, its managing director said on Friday at the Reuters Hedge Funds Summit. Advent, which has nearly $3 billion under management, made some of the earliest private equity investments in electronic trading platforms. It was an investor in the Island electronic communications network (ECN), which merged with Instinet Group Inc. (INGP.O: Quote, Profile, Research) in 2002. However, managing director David Mussafer said that the U.S. stock exchange and online brokerage arena, which has seen a spate of consolidation, was to an extent played out and he instead sees opportunities elsewhere. "We are looking at a number of interesting opportunities that are niche-related," said Mussafer at the summit, held at Reuters U.S. headquarters in New York. In June 2002, Advent led a $34 million growth equity investment in credit derivatives broker GFI Group (GFIG.O: Quote, Profile, Research), which floated on Nasdaq in January 2005. Advent currently holds about 10 percent of GFI, Mussafer said. "We made that investment (in GFI) on the back of the premise that the credit derivatives market will continue to grow and that indeed has been the case. We're looking at other types of similar niche brokerage operations, whether they're options, futures -- a whole range of opportunities. And it's still a robust area." Mussafer said he likes to invest in the "early phase that borders between growth and maybe the beginning of consolidation." "And you're at the latter stages in some of the examples ... like ECNs and some of the online brokerages. That doesn't mean there won't be transactions and interesting mergers that occur but at least for Advent, because of the size and type of deal that we like, there are less specific opportunities that we're chasing." In June, online broker Ameritrade struck a deal to buy TD Waterhouse USA from another Canadian bank, Toronto-Dominion Bank (TD.TO: Quote, Profile, Research). In August, E*Trade Financial Corp. (ET.N: Quote, Profile, Research) said it would buy rival U.S. online broker HarrisDirect for $700 million from BMO Financial Group (BMO.TO: Quote, Profile, Research). Meanwhile, in April the NYSE said it planned to buy electronic rival Archipelago Holdings (AX.P: Quote, Profile, Research), while Nasdaq (NDAQ.O: Quote, Profile, Research) announced plans to acquire the Island electronic trading platform of rival Instinet. Homepage Please support are sponsors. To design you custom retirement plan. http://www.retirement-plan.us For planing a IRA rollovers. http://www.ira-rollover.us Professional asset allocation and the wonders it can do. http://www.asset-allocation.us Professional money management: National ranked performance. http://www.roth-ira.us Managers selected to fit your needs. http://www.money-managers.us |
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