Hilbert's Bold Move: Acquiring Digital Asset Pioneer Liberty Road Capital
Tuesday, Nov 26, 2024 6:29 am ET
2min read Hilbert Group, a Nasdaq-listed investment company specializing in quantitative, algorithmic trading strategies in digital asset markets, has made a significant move to bolster its position in the industry. The company announced its acquisition of renowned digital asset manager Liberty Road Capital (LRC), a strategic acquisition set to expand Hilbert's offerings, boost earnings, and add AI-trading and crypto derivatives expertise to its strategy portfolio.
The deal, structured as an equity-only asset purchase with an earn-out and up-front component, sees Hilbert Group acquiring LRC's whole business, including all asset management agreements, existing client relationships, intellectual property, and key employees. This acquisition aligns the interests of both parties, even in high volatility scenarios, as Hilbert retains all gross earnings from the acquired business.
LRC, founded in 2019 in Monaco, brings a 5-year operating history with a strong track record and currently runs $110 million (SEK 1.2 billion) in assets under management (AUM). The acquisition will increase Hilbert Group's AUM to approximately $410 million, marking a substantial 36.67% increase. LRC's revenue is generated through hedge fund fees, and the firm is profitable, making it an attractive addition to Hilbert's portfolio.
The acquisition also brings Russell Thompson, an industry-leading figure in hedge fund and digital asset management, to Hilbert Group. Thompson co-founded LRC and, in 2003, co-founded The Cambridge Strategy, a world-class traditional hedge fund that peaked at $3.5 billion in AUM before it was sold in 2018. Thompson's expertise in emerging market currencies, derivatives, and asset management will significantly accelerate Hilbert's business development and expand its global network.
Russell Thompson will be elected as a new board member of Hilbert Group, with over 60% of shareholders supporting his election. An extraordinary general meeting (EGM) will be convened to take place in conjunction with the closing of the acquisition. LRC's co-founders, Anna Dinescu and Tom Bowles, will also bring operational, tech, and quantitative expertise to Hilbert, helping the company advance its mission of becoming a world-leading digital asset manager.
Hilbert Group CEO Niclas Sandström commented on the acquisition, highlighting the complementary nature of LRC's expertise in derivatives and AI-trading, which expands Hilbert's range of strategies. Sandström also emphasized the importance of incorporating LRC's co-founders' expertise in operational, tech, and quantitative aspects to help Hilbert advance its mission.
Russell Thompson, CEO of LRC, expressed his enthusiasm about joining forces with Hilbert Asset Management, merging deep expertise in both fiat and crypto markets to deliver a best-in-class digital asset management experience for investors. By 2025, Thompson believes Hilbert will establish itself as a leading name in the digital asset space.
The acquisition of Liberty Road Capital by Hilbert Group represents a strategic move that strengthens Hilbert's position in the digital asset management sphere. By incorporating LRC's expertise in derivatives and AI-trading, as well as the industry-leading experience of Russell Thompson, Hilbert Group is poised to expand its offerings, attract more clients, and drive earnings growth. The combined entity will have a robust team with operational, tech, and quantitative expertise, enabling it to offer innovative digital asset management strategies and advance its mission of becoming a world-leading digital asset manager.
The deal, structured as an equity-only asset purchase with an earn-out and up-front component, sees Hilbert Group acquiring LRC's whole business, including all asset management agreements, existing client relationships, intellectual property, and key employees. This acquisition aligns the interests of both parties, even in high volatility scenarios, as Hilbert retains all gross earnings from the acquired business.
LRC, founded in 2019 in Monaco, brings a 5-year operating history with a strong track record and currently runs $110 million (SEK 1.2 billion) in assets under management (AUM). The acquisition will increase Hilbert Group's AUM to approximately $410 million, marking a substantial 36.67% increase. LRC's revenue is generated through hedge fund fees, and the firm is profitable, making it an attractive addition to Hilbert's portfolio.
The acquisition also brings Russell Thompson, an industry-leading figure in hedge fund and digital asset management, to Hilbert Group. Thompson co-founded LRC and, in 2003, co-founded The Cambridge Strategy, a world-class traditional hedge fund that peaked at $3.5 billion in AUM before it was sold in 2018. Thompson's expertise in emerging market currencies, derivatives, and asset management will significantly accelerate Hilbert's business development and expand its global network.
Russell Thompson will be elected as a new board member of Hilbert Group, with over 60% of shareholders supporting his election. An extraordinary general meeting (EGM) will be convened to take place in conjunction with the closing of the acquisition. LRC's co-founders, Anna Dinescu and Tom Bowles, will also bring operational, tech, and quantitative expertise to Hilbert, helping the company advance its mission of becoming a world-leading digital asset manager.
Hilbert Group CEO Niclas Sandström commented on the acquisition, highlighting the complementary nature of LRC's expertise in derivatives and AI-trading, which expands Hilbert's range of strategies. Sandström also emphasized the importance of incorporating LRC's co-founders' expertise in operational, tech, and quantitative aspects to help Hilbert advance its mission.
Russell Thompson, CEO of LRC, expressed his enthusiasm about joining forces with Hilbert Asset Management, merging deep expertise in both fiat and crypto markets to deliver a best-in-class digital asset management experience for investors. By 2025, Thompson believes Hilbert will establish itself as a leading name in the digital asset space.
The acquisition of Liberty Road Capital by Hilbert Group represents a strategic move that strengthens Hilbert's position in the digital asset management sphere. By incorporating LRC's expertise in derivatives and AI-trading, as well as the industry-leading experience of Russell Thompson, Hilbert Group is poised to expand its offerings, attract more clients, and drive earnings growth. The combined entity will have a robust team with operational, tech, and quantitative expertise, enabling it to offer innovative digital asset management strategies and advance its mission of becoming a world-leading digital asset manager.
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