Wall Street Access Corp has acquired a majority interest in RJL Capital Group (RJL), a New York-based provider of prime brokerage and trading services. Terms of the private transaction have not been disclosed.
RJL provides a suite of integrated prime brokerage clearance, execution, and reporting services supported by proprietary technologies and an experienced support staff. RJL customers benefit by being introduced on a fully-disclosed basis to multiple prime broker custodians, allowing investment managers to diversify custodial risk while enjoying the operational ease of a single trading solution, service team and reporting system.
“We’re very excited to welcome the RJL team, as there has been a huge increase in demand for ‘mini-prime’ brokerage services over the past few years since the major prime brokers have focused on their larger clients and ceased servicing those who do not meet tightened criteria,” says Sean Kelleher (pictured), President of Wall Street Access. “With the addition of RJL, we are now extremely well positioned to deliver a solution to this under-serviced universe of customers who typically manage assets under USD100 million.”
RJL will continue to operate under its existing brand and will maintain its current clearing and technology relationships while serving more than 100 institutions, fund managers, family offices, and registered investment advisors across the United States.
“Wall Street Access has been an active owner and operator of financial services businesses since 1981,” says Ralph Lamberti, President and CEO of RJL. “Having the firm’s capital, expertise, reputation, and infrastructure behind us will enable RJL to more effectively focus on serving our existing clients, while vastly enhancing our operational infrastructure for future expansion.”
This investment marks the second platform extension for Wall Street Access in 2017, following a joint venture between Wall Street Access Asset Management and Nu Paradigm Investment Partners, an investment advisor, asset manager, and outsourced CIO firm. Combined, the businesses manage nearly USD300 million in assets.
“In a changing financial services landscape, many quality firms are looking for a well-capitalised and established partner,” says Kelleher “Wall Street Access takes an entrepreneurial view of these opportunities, and we will continue to add new lines of business and talented salespeople to support their growth.”