Peak6 Investments, a Chicago-based trading firm, is planning to divest stake in its hedge-fund business, Peak6 Advisors.
Peak6 Advisors CEO Joe Scoby will acquire 50% stake in the hedge fund business with other executives later receiving equity in the new firm, reported The Wall Street Journal.
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As part of the deal, Peak6 Advisors will be renamed as Achievement Asset Management and will continue to remain under the leadership of Scoby.
Achievement Asset Management will be based in Chicago. Additionally, Peak6 Investments will get cash up front and revenue-sharing payments over the next several years.
The spin out comes as the firm aims to focus on growth by trading European credit and stocks out of a new London office, which was opened last month. The London office is aimed at building up its investing in European stocks, corporate bonds and bank loans via existing Peak6 hedge funds.
Terms of the transaction, which is expected to close at the end of this month, have not been disclosed.
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By GlobalDataBrad Goldberg, president of Peak6 Investments, said: "The split was motivated by clients, who like investing in a firm singularly focused on asset management."
Goldberg added that Peak6 Advisors has grown as investors increasingly wanted their money to be managed by a separate fund-management firm not affiliated with a proprietary-trading operation.
