FCSTONE Australia is building on its position as a major force in the commodity risk management sector in Australia, with the recently announced acquisition of boutique investment bank the Provident Group by its parent company, International Assets Holding Corporation (INTL).
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Provident, a New York-based investment banking and advisory firm, focuses mainly on middle-market companies seeking capital throughout key growth markets spanning Australia, North America, Latin America and Northern Asia.
The new investment banking division will be headed by Steven J. Carlson, currently the chairman and CEO of Provident Group.
In Australia, the acquisition will bring together Provident’s expertise in deal making with the commercial customer base of FCStone, positioning the company to assist clients with advice on their capital structure or mergers and acquisitions.
Managing Director of FCStone Australia Peter Rizzo said “The building of a specialized investment banking capability is good news for FCStone’s Australian client base.
“This week’s announcement highlights the strategy to expand the capabilities of the group and FCStone Australia to better serve the Australian and global commercial customer base,” Mr Rizzo said.
FCStone Australia Pty Ltd began operations in Australia in January 2009 providing risk management services for producers and users of agricultural commodities, including grains, oilseeds, sugar, cotton, beef, dairy and wool.
Since then, parent company INTL has made several other acquisitions which have significantly expanded the depth of services and expertise being offered to Australian agribusiness and commercial clients.
In July this year Hanley Group Capital merged with FCStone’s existing Over the Counter (OTC) trade desk to bring clients a higher level of OTC service.
The Hanley Group is a major Chicago-based risk-management firm that specialises in making markets in exchange-traded agricultural options and in the development and trading of complex structured OTC products for the commercial sector.
Earlier this year, in April, the company also acquired Chicago-based introducing broker Risk Management Incorporated (RMI), and natural gas consultancy RMI Consulting Inc. Both of these companies specialise in the development and execution of price-risk and credit-risk management programs in the energy sector.
FCStone has also recently announced a new 24-hour institutional order execution desk designed to serve institutional customers, including commodity trading advisers (CTAs) and clearing and hedging customers, in all time zones across the globe.
One of the company’s unique service offering is its IRMP risk management consulting to commercial customers, which creates unusually strong and enduring relationships and is the key to delivering additional capabilities to customers.
