Cantor Fitzgerald is making a major move in the financial world. The U.S. brokerage has agreed to buy O’Connor, the hedge fund unit of Swiss bank UBS. While the price tag hasn’t been shared, O’Connor brings about $11 billion in assets under management.

That’s a big deal for Cantor, especially as it looks to grow its reach in alternative investments like hedge funds, private credit, and commodities.

This deal helped Cantor expand its asset management business at a time when many investors were looking for more than just stocks and bonds. With market volatility on the rise, alternative assets have become more attractive to investors who want to spread their risk and boost returns.

For Cantor, picking up O’Connor is a way to quickly add experience, scale, and credibility in this space.

UBS Sells O’Connor, But Not Completely

For UBS, the sale is part of a bigger clean-up effort. Ever since the bank took over Credit Suisse in 2023, it has been looking to simplify operations and focus on its core business. With new regulations on the horizon that may require UBS to hold more capital, it makes sense for the bank to streamline its asset management arm.

But UBS isn’t cutting all ties with O’Connor. Even after the deal closes later this year, the two firms plan to keep working together. UBS clients will still have access to O’Connor’s products through a long-term agreement.

So while UBS may be selling the unit, it still wants its clients to benefit from what O’Connor offers.

Hedge Funds: The Coolest Kid in Town

This deal comes as hedge funds are getting more attention again. Investors have shown growing interest in products like private credit and structured funds. And trading in dividend-linked derivatives is up sharply this year.

Futures and options tied to company payouts have seen volume rise nearly 80 per cent in 2025. Many of these trades are coming from hedge funds trying to protect their positions during a shaky tariff-led market.

Cantor sees where the momentum is heading. With O’Connor now under its roof, the firm is setting itself up to be a bigger player in a fast-growing part of finance.