The deal will meaningfully increase assets under management, boost earnings and add AI-trading and crypto derivatives expertise to Hilbert Group’s strategy offerings.
Hilbert Group AB (Nasdaq: HILB B) has agreed to acquire the renowned digital asset manager Liberty Road Capital (LRC). The acquisition is structured as an equity-only asset purchase with an earn-out and up-front component, whereby Hilbert Group acquires Liberty Road’s whole business – including all asset management agreements, existing client relationships, all IP and key employees.
The setup of the deal ensures that Hilbert retains all gross earnings from the acquired business. To this effect, Hilbert Group and Liberty Road have signed a binding term sheet. Closing is expected to take place in January 2025.
LRC has a 5-year operating history with a strong track record and currently runs $110 million (SEK 1.2 billion) in assets under management (AUM). LRC is generating revenue through hedge fund fees and is profitable.
The acquisition also brings Russell Thompson, an industry-leading figure in hedge fund and digital asset management, to Hilbert Group. Thompson co-founded LRC and in 2003 co-founded The Cambridge Strategy, a world class traditional hedge fund that peaked at $3.5 billion in AUM before it was sold in 2018. Russell is widely regarded for his expertise in emerging market currencies, derivatives, and asset management.
Russel Thompson will be elected as a new board member of Hilbert Group. An EGM will be convened to take place in conjunction with closing of the acquisition. Shareholders in Hilbert Group controlling more than 60 per cent of the voting rights supports the election.
Hilbert Group CEO Niclas Sandström comments: “This acquisition complements Hilbert on multiple fronts. Russell brings unparalleled experience as a CIO and derivatives trader, along with an extensive global network that will significantly accelerate our business development. Moreover, incorporating LRC’s expertise in derivatives and AI-trading expands our range of strategies. In addition, LRC’s co-founders, Anna Dinescu and Tom Bowles, bring exceptional operational, tech, and quantitative expertise to help Hilbert advance its mission of becoming a world-leading digital asset manager.” Sandström continues: “As far as the deal structure goes, with earn-out and small up-front, it strongly aligns the interest of both parties even in a scenario where there is high volatility in the acquired future AUM”.
Russell Thompson, CEO of LRC, comments: “We are thrilled to join forces with Hilbert Asset Management, merging deep expertise in both fiat and crypto markets to deliver a best-in-class digital asset management experience for our investors. By 2025, I believe Hilbert will establish itself as a leading name in the digital asset space.”
LRC co-founder and CTO Tom Bowles highlighted the potential of the combined entity, adding that: “We are excited to fully scale our AI-trading capabilities in partnership with Hilbert.”
About Liberty Road Capital
Liberty Road Capital, founded in 2019 in Monaco, is regulated as an Approved Investment Manager (IBR/AIM/22/0725) under the BVI Financial Services Commission via the Securities and Investment Business Act (SIBA). Headquartered in the British Virgin Islands, the firm focuses on digital derivatives trading and asset management. It employs data-driven strategies and proprietary AI technology to optimise market opportunities. Its institutional-grade infrastructure with strong risk management supports high-performance strategies in digital assets, including Bitcoin (BTC) and Ethereum (ETH).
More info: www.libertyroadcapital.com
Key terms of the Acquisition
The deal is structured in an accretive earn-out structure, the up-front purchase price consists of 2,727,264 newly issued B-shares, corresponding to four (4) per cent of Hilbert Group’s share capital. In addition, the acquisition involves a 50/50 revenue split on Liberty Road’s business over the next two years. Under the terms, Liberty Road commits to convert all its future net earnings under the revenue split to new B-shares in Hilbert Group.
For further information, please contact:
Niclas Sandström
CEO Hilbert Group AB
+46 (0)8 502 353 00
ir@hilbert.group
