Schonfeld Strategic Advisors and Folger Hill Asset Management agreed to merge their fundamental equities businesses under the Schonfeld brand, said a news release issued by Schonfeld.
Financial terms of the deal were not disclosed. The transaction is expected to close in the second half of 2018, subject to customary closing conditions, including regulatory approval.
Under the terms of the agreement, all Folger Hill employees out of its Hong Kong and Singapore offices will become Schonfeld employees, according to sources familiar with the matter. Angus Wai, CEO of Folger Hill Asia, will continue in his current role under Schonfeld.
While Schonfeld will bring on the Asia employees, it will look selectively at Folger Hill's U.S. employees and determine whether any of them will be a good fit with Schonfeld.
In addition, Folger Hill parent company Leucadia National Corp. and its founder and CEO Sol Kumin will acquire a revenue share interest in Schonfeld's global fundamental equities business. Leucadia has also agreed to make a "significant" investment in Schonfeld's fundamental equities fund, according to the news release.
"We are pleased to welcome Angus Wai and the Folger Hill team to Schonfeld," said Ryan Tolkin, Schonfeld's chief investment officer, in the release. "We look forward to deploying additional capital to the existing investment teams and to attracting additional top talent."
Folger Hill has a total of about 100 employees and manages roughly $1 billion in assets. Schonfeld has a gross market value of $20 billion, Schonfeld spokesman Darren Brandt said.