Hanwha Life completes purchase of Velocity Clearing, marking significant debut in the U.S. market.
Hanwha Life Expands Globally with Major Acquisition of Velocity Clearing
In a strategic move aimed at strengthening global business and ensuring sustainable, long-term growth, South Korea's largest life insurer, Hanwha Life, has completed the acquisition of a 75% stake in Velocity Clearing, LLC – a U.S.-based post-trade financial services firm. This marks the first time a Korean insurance company has acquired a U.S. securities firm, signalling Hanwha Life's strategic expansion into North American capital markets [1][2][3][4].
Based in New York, Velocity Clearing specializes in clearing, settlement, stock lending, and prime brokerage services for clients such as institutional investors and hedge funds. As of the end of 2024, the firm held approximately US$1.2 billion in total assets and exhibited a robust 25% compound annual growth rate (CAGR) in revenue over the previous three years, with consistent profitability [1][2][3][4].
For Hanwha Life, this acquisition is a calculated, long-term strategy to diversify and enhance profitability by gaining direct access to the U.S. capital markets. The deal enables Hanwha Life to broaden its business portfolio, deliver a wider range of global financial products, and build a digital-first financial ecosystem by integrating Velocity Clearing's post-trade infrastructure with Hanwha's U.S. asset management subsidiary (Hanwha Asset Management USA) and its artificial intelligence center (Hanwha AI Center) based in San Francisco [1][2][3].
The synergy between the two companies is intended to leverage fintech and AI-driven innovation to redefine traditional insurance and capital market services. Brian Schaeffer, President of Velocity Clearing, stated that the partnership is client-driven and will further accelerate product and geographic expansion. Michael Logan, CEO of Velocity Clearing, expects the partnership to accelerate growth and unlock new opportunities [1].
Lee Millstein, Chairman of Global Real Estate for Cerberus, who supported Velocity Clearing through a period of growth, expressed pride in the acquisition. He believes that Hanwha Life is well-positioned to build on the momentum in Velocity Clearing's next chapter [2]. The acquisition follows an approximately eight-month process from the initial stock purchase agreement signed in November 2024 and involved purchasing shares previously held by an affiliate of Cerberus Capital Management LP. Hanwha Life plans to maintain operational stability by retaining Velocity Clearing's current management team while pursuing strategic growth opportunities within the U.S. financial sector [3][4].
In summary, Hanwha Life's acquisition of Velocity Clearing represents a landmark step in the company's global expansion, allowing it to position itself at the intersection of insurance, fintech, and capital markets through a strong foothold in North America and the integration of AI and digital technologies [1][2][3][4].
Hanwha Life's acquisition of Velocity Clearing enables the company to diversify and enhance its profitability by gaining direct access to the U.S. capital markets, and this strategic move is a calculated long-term investment in the business sector. The acquisition isExpected to broaden Hanwha Life's business portfolio, allowing it to deliver a wider range of global financial products, including investing in capital markets.
