South Korea’s Hanwha Life said it has agreed to buy a 75% stake in the parent of Velocity Clearing, a US-based financial services company.
The deal signals Hanwha Life’s entry into the US financial sector and strengthens its strategy to expand globally.
The management team of Velocity Clearing will retain the shares retained.
Hanwha Life Acquires Majority Stake In Velocity Clearing
Established 78 years ago, Hanwha Life has always emphasized the acceleration of growth both domestically and internationally, including establishing its strong presence in markets like Vietnam and Indonesia.
Seung Joo Yeo, CEO of Hanwha Life, said
the deal points toward the diversified growth opportunities the company wants to present through largely crossing geographic and industry boundaries.
The acquisition would be an excellent springboard for enhancing the global capabilities of South Korea’s leading insurance company with Velocity Clearing’s powerful platform and expertise, he said.
With the Velocity Clearing management team, he will be well positioned to make a strong impact in the US and lay the foundation for sustainable, long-term growth,” he added.
Velocity Expansion Clearing
Velocity Clearing is a broker-clearer that provides brokerage and clearing services including an operational platform for trading, securities lending, and financing.
In the past year, it has exponentially grown, with its assets under custody reaching 300% and having a considerable expansion of clients in Latin America and Asia.
This partnership reflects the strengths and appeal of Velocity Clearing’s business model said by Velocity Clearing’s CEO Michael Logan.
“Velocity Clearing is experiencing record growth across a variety of success metrics and clients are embracing our offering of a full suite of trading solutions and services that empowers them to reach their goals and objectives,” he said.
Brian Schaeffer, president of Velocity Clearing, said that it would strengthen the capacity of the company to serve the rising and maturing client demand in its international markets.
“We have made demonstrable progress in multiple geographies, such as Europe, Asia, Latin America, and the Middle East.
This partnership builds on our plans, allowing us to effectively address growing customer demand in new markets and position us for long-term success,” he said.
Hanwha Life said it will retain the existing workforce of Velocity Clearing, adding that cooperation will be key to unlocking potential synergies between the firms.
The transaction is conditional on regulatory approval in both the US and South Korea. See LinkedIn post here.
Houlihan Lokey is financial advisor for Velocity Clearing, while Hanwha Life took BDA Partners as its financial advisor.
Velocity Clearing was advised by Wollmuth Maher & Deutsch, whereas Skadden counselled on this transaction for Hanwha Life.
