The Chicago-based hedge fund company O'Connor has been part of UBS for more than 30 years. The major bank acquired O'Connor & Associates in 1992.

With the acquisition, UBS is looking for ways to reduce balance sheet risks. Talks with Cantor Fitzgerald are currently underway, according to sources cited by «Bloomberg».

The deal could include a possible revenue-sharing agreement, one of the sources said. In this case, Cantor would acquire the unit from UBS's wealth management division and the Swiss bank would receive a portion of the proceeds.

No details were given on a possible purchase price for the unit. Both UBS and Cantor Fitzgerald declined to comment to the agency.

16.5 Billion Dollars on the Books

O'Connor managed assets worth 16.5 billion dollars at the end of 2024, including loans, according to an annual report.

Cantor Fitzgerald announced in April that is would acquire wholesale-marketmaking business of Canaccord Genuity Group. This was part of plans to expand its equities business, which has seed rapid growth in trading volumes in recent years.

The management had announced that Cantor wanted to grow through acquisitions and staff expansion. Cantor already has a small asset management business.