JPMorgan’s wholly owned subsidiary Neovest acquired investment management platform LayerOne Financial in an effort to bolster its offerings for hedge fund clients, according to a Friday announcement.
The deal allows Neovest’s more than 500 clients to monitor portfolios, conduct risk assessments and send orders to their brokers, and to perform compliance checks and manage their positions, the companies said.
“Following this acquisition, Neovest can enable clients to manage their full investment lifecycle with one software provider with industry-leading capabilities,” Jimmi Shah, Neovest’s CEO, said in a prepared statement. “Neovest’s key objectives are creating an exceptional client experience from on-boarding to trade execution management and expanding our product capabilities to advance and differentiate from other investment management platforms. LayerOne’s technology and people are perfectly placed to help us on this journey.”
LayerOne spun off from Fortress Investment Group in 2017, and by the next year, had a growing client base with $100 million assets under management.
Kyle Zasky, LayerOne Financial’s CEO, said the deal “solidifies our ability to offer a powerful, cohesive and holistic offering,” calling it “the right next step for our people, our clients and our business.”
Financial terms of the transaction were not disclosed.
JPMorgan acquired Neovest in 2005. The platform in 2021 paid a $2.75 million Securities and Exchange Commission penalty for failing to register as a broker-dealer. It was the first time the SEC charged an order and execution management system provider for operating as an unregistered broker-dealer.
