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Hedge Funds Are Making Their Move Into Puerto Rico

131024100102-puerto-rican-bonds-620xaNew York (HedgeCo.Net) – After a huge plunge in Puerto Rico’s bond prices over the summer, hedge funds are desperate to get their foot in the door. Hedge fund investor Fairbridge Capital Partners has purchased the Puerto Rico based brokerage company Consultiva Securities.

Puerto Rico also recently passed several Tax incentives designed to attract hedge funds, private equity and billionaires to the US territory. These programs have gained the interest of many market professionals including John Paulson who is rumored to be considering relocating. As Puerto Rico makes a push to become a banking haven it has created a revived interest in local banking and brokerage entities that will ultimately benefit from such. Fairbridge Capital Markets will continue to maintain its headquarters in Puerto Rico while adding offices in Newport Beach and Chicago.

Consultiva Securities is the 5th largest broker dealer by asset size in Puerto Rico and services an institutional client base including governments, foundations, endowments, corporations and pensions plans, as well as a robust network of high net worth individuals and families.

“We are very excited about this acquisition and are looking forward to working strategically with Consultiva Internacional. The transaction will also allow us to offer brokerage services in the U.S. to the many institutions our management has long worked with. With the large amount of dislocation in the local municipal bond market along with the recently implemented tax incentives, we view Puerto Rico as ripe with opportunity,” said Ed Prado, President and CEO of Fairbridge Capital Partners and Fairbridge Capital Markets.

“Fairbridge is the ideal buyer of our broker dealer unit, they bring seasoned management a keen understanding of our client base and culture while possessing many relationships on the mainland. This is part of a strategic plan that will ultimately allow Consultiva Internacional to focus on its core advisory/consulting business, while our clients can enjoying the benefits of access to markets and services through a larger, independent broker-dealer,” said Myrna Rivera Founder and CEO of Consultiva Internacional.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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