Date: 7/5/2010
Source: PR Newswire
Author: Incapital

Incapital Acquires Blue Sky Asset Management

Incapital, a securities and investment banking firm based in the US and UK, announced today that it has acquired the business of London–based Market-Linked Products specialist Blue Sky Asset Management. The trans-Atlantic deal combines two leading independent providers of Market-Linked Products and fixed income securities for institutional and professionally advised investors.

In the US, Incapital LLC is a market leading provider of Market-Linked Products and fixed income securities. Incapital underwrites and distributes through broker-dealers, banks and institutional investors.

Blue Sky Asset Management (Blue Sky) is a leading independent provider in the UK and Europe, with a reputation amongst high end wealth managers and professional advisers for its research based, client-centric, ‘intelligent’ Market-Linked Products approach. Established in 2007 by a team of senior industry figures, the firm’s approach has been regularly recognised through industry awards including ‘Best in the UK’, ‘Best Research Process’ and ‘Most Useful Industry Website for Investors in the UK’.

Blue Sky’s business will merge into Incapital’s UK-based affiliate, Incapital Europe Limited, with a management team that is widely respected in the UK intermediary channel. This team will be led by Chris Taylor, James Chu and Mark Dickson – all of whom will assume Managing Director roles within Incapital Europe.

‘‘The combination of Incapital and Blue Sky creates a leading global independent platform for fixed income and Market-Linked Products. Incapital Europe’s clients will immediately benefit from the significant scale and capabilities of the combined business units,” said Incapital LLC president John Radtke. “Incapital Europe will announce initiatives in the UK, Channel Islands and Continental Europe, bringing an expanded list of major banking counterparties, educational resources for professional advisers and building on the exceptional reputation that both firms have for client-centric innovation."

Chris Taylor, taking on the role of Managing Director at Incapital Europe, said: “UK wealth managers and professional advisers understand the benefits of dealing with independent Market-Linked Products providers – not least the advantages and value of open architecture counterparty platforms. However, it’s a simple fact that the independent firms active in the UK have lacked the capability and capital to operate at the highest level – or to satisfy the increasingly deep due diligence processes and requirements of advisers and investors. This trans-Atlantic deal creates an independent provider capable of competing at the highest level.

Incapital Europe will immediately occupy a market leadership position, leveraging significant counterparty and trading advantage, with genuine scale, depth of resource and capability.” Incapital Europe will rebrand Blue Sky’s award winning website – cited as the ‘Most Useful Industry Website for Investors in the UK’, by the Financial Times. The unique Blue Sky ‘Guide to Understanding Counterparties’, which highlights ‘due diligence’ considerations for advisers and investors, and the Blue Sky ‘Counterparty Platform’, which provides credit rating and CDS information for the major structured product counterparties, will continue to be offered – and will be expanded.

Incapital Europe will also retain and build upon Blue Sky’s exclusive strategic alliance with economic and investment research specialist Redtower Asset Management – with the highly regarded research papers ‘Global Temperature’ and ‘Observers’ continuing to be produced for professional advisers, and made available via the company’s website or provided to advisers who register to receive them.