South Korea’s Hanwha Life has announced an agreement to purchase a 75% stake in the parent of Velocity Clearing, a financial services firm based in the US.
The deal marks Hanwha Life’s entry into the US financial sector and supports its strategy to expand globally.
The management team of Velocity Clearing will retain the remaining ownership interest.
Founded 78 years ago, Hanwha Life has focused on domestic and international growth, with operations already established in markets like Vietnam and Indonesia.
Seung Joo Yeo, CEO of Hanwha Life, said the acquisition aligns with the company’s goal of creating diversified growth opportunities that transcend geographic and industry boundaries.
“With Velocity Clearing’s robust platform and expertise, this acquisition will serve as a springboard for enhancing the global capabilities of South Korea’s leading insurance company. Together with the Velocity Clearing management team, we are well positioned to make a strong impact in the US and lay the foundation for sustainable, long-term growth,” he said.
Velocity Clearing provides brokerage and clearing services, alongside a technology platform that facilitates trading, securities lending, and financing.
Over the past year, the company has significantly expanded, increasing assets under custody by 300% and growing its client base in Latin America and Asia.
Michael Logan, CEO of Velocity Clearing, said the partnership reflects the strength and appeal of Velocity Clearing’s business model.
“Velocity Clearing is seeing record growth across multiple 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, added that the deal will enhance the company’s ability to meet growing client demand in 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 positioning us for long-term success,” he said.
Hanwha Life intends to retain Velocity Clearing’s existing workforce, emphasising collaboration to maximize potential synergies between the companies. The deal remains subject to customary regulatory approvals in both the US and South Korea.
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Houlihan Lokey and BDA Partners served as financial advisors for Velocity Clearing and Hanwha Life, respectively.
Legal counsel included Wollmuth Maher & Deutsch and Schulte Roth & Zabel for Velocity Clearing, with Skadden advising Hanwha Life.
