Houlihan Lokey Advises Velocity Clearing

Houlihan Lokey is pleased to announce that Velocity Clearing, LLC, formerly affiliated with Cerberus, has received a majority investment from Hanwha Life. This milestone transaction marks the first time a Korean insurance company has acquired a controlling interest in a foreign brokerage firm. 

Velocity Clearing is a technology-driven, self-clearing broker-dealer providing execution services, clearing, and custody along with access to stock locate services, securities lending, competitive financing, and a firmwide focus on world-class customer service. Velocity Clearing supports retail traders and institutional clients, including broker-dealers, hedge funds, family offices, and proprietary trading firms in the U.S. and across the globe. Since 2023, Velocity Clearing has grown its assets under custody by 300%, more than doubled its correspondent clearing business, increased its U.S. and offshore technology staff by 50%, and expanded into Latin American and Asian markets.

Established in 1946, Hanwha Life is not only a leading South Korean life insurance company but also the first and oldest in the nation. For the past 78 years, Hanwha Life has played a critical role in developing the industry and expanding the country’s economic growth. In 2023, Hanwha Life reported total assets of USD 113.77 billion, demonstrating its sound structure and firm commitment to adding innovative products and services that meet a wide range of customer needs.

With this transaction, Hanwha Life acquired a 75% stake in the parent of Velocity Clearing, while the Velocity Clearing management team retained the remaining minority stake. Hanwha Life secured a foothold in the U.S. financial sector, expanding access to the capital markets for its global customer base. For New York-based Velocity Clearing, the transaction accelerates its ongoing expansion into the Asian market.

Houlihan Lokey acted as the financial advisor to Velocity Clearing.

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