BDA advises Hanwha Life on acquisition of majority stake in Velocity Clearing

Milestone transaction will mark the first time a Korean insurance company has acquired a controlling interest in a foreign brokerage firm

BDA Partners is pleased to announce that its client, Hanwha Life, South Korea’s first life insurance company, has agreed to acquire a 75% stake in the parent of Velocity Clearing, a US-based global financial services firm. The Velocity Clearing management team will retain the remaining minority stake. With this acquisition, Hanwha Life will secure a foothold in the US financial sector, expanding access to excellent opportunities, to maximize returns on investment.

Hanwha Life is a leading Korean life insurance company, at the forefront of developing the insurance industry, driving Korean economic growth for 78 years. As part of that growth, the financial group has expanded into overseas markets, including Vietnam and Indonesia, with its latest market being the US. Hanwha Life is part of the Hanwha Group.

Velocity Clearing offers a unique combination of people, processes and technology that allow clients to trade, borrow and invest with confidence. Velocity will join Hanwha Life following a record year of growth. Since 2023, Velocity Clearing grew its assets under custody by 300%, more than doubled its correspondent clearing business, increased its US and offshore technology staff by 50%, and expanded into Latin American and Asian markets. The acquisition of Velocity by Hanwha will allow the New York brokerage and global financial technologies company to continue its expansion into the Asian market.

Hanwha Life is committed to retaining Velocity Clearing’s existing staff, and promoting collaboration to foster future synergies. The extensive professional experience and expertise of Velocity’s employees will be a valuable asset to Hanwha as it continues to grow.

BDA Partners acted as exclusive financial advisor to Hanwha.

Euan Rellie, Managing Partner, BDA, said, “BDA has a long record of helping leading Asian companies expand globally. We’re excited about our work for Hanwha, a blue-chip chaebol, with expertise and reach across financial markets. This transaction marks a milestone, not only for Hanwha, but for the entire Korean financial market. Korean financial institutions have long sought to gain exposure to the US banking sector through acquisition, a goal that has remained out of reach – until now.”

Zac Chartier, Director, BDA, added, “Hanwha has taken a critical step, entering the broker-dealer sector, a core backbone of the US banking system. This strategic move enhances Hanwha’s global presence and paves the way for future developments.”