Knight Capital Group said it agreed to acquire Astor Asset Management, LLC, a money management firm specializing in macro-economic strategy and construction of portfolios of exchange-traded funds. Knight said it would pay roughly $20 million in cash and stock, based on Astor’s assets under management at the close.
“Astor Asset Management has undergone rapid growth by providing active management and diversification across sectors and asset classes at a relatively low expense ratio using ETFs,” said Thomas M. Joyce, chairman and chief executive officer, Knight Capital Group, in an announcement of the deal. “I believe we can help Astor get to the next level while creating a foundation for asset management that contributes stable, recurring revenues to Knight.”
Founded by Robert N. Stein in 2001, Astor tries to identify fundamental economic shifts to provide retail and institutional investors with capital appreciation while managing risk in diverse market conditions. The firm utilizes proprietary macroeconomic models to construct portfolios of exchange-traded funds (ETFs) which are offered through advisors within separately-managed accounts (SMAs) and the Astor Long/Short ETF Mutual Fund.
Based in Chicago, Ill., Astor is a registered investment advisor with the SEC. The firm has 13 employees and approximately $560 million in assets under management.
The acquisition is expected to be completed in the fourth quarter. Astor Asset Management, LLC will operate as a wholly-owned operating subsidiary of Knight Capital Group.