Cantor Fitzgerald has parted company with its entire
transition management team, headed by Michael
Gardner, and has ceased operations for the foreseeable
future, Global Investor/ISF has learned.
The business, part of the portfolio solutions group, was set
up just 18 months ago. The decision to close down
the London-based team was taken last week but was not
announced to the market.
According to Cantor Fitzgerald, the American bank remains
committed to transition management and is in the
process of replacing its entire team.
However, there is no fixed timetable for it to restart
trading and, as things stand, would be forced to turn away
Gardner remains on an interim basis only to wind-up
outstanding business. The rest of his five-strong team has
Transition management teams can form close working
relationships so it is not unheard of for a complete group to
move to another provider.
Michael Gardner was hired as senior managing director and
global head of portfolio solutions at the time Cantor
Fitzgerald entered the market, announced 13 April 2015. Gardner
will not remain in any capacity with the bank.
A well-known figure within transition management, Gardner
was hired with almost a decade of experience at JPMorgan and,
before that, almost five years at Bear Sterns before the
businesses were combined post-2008.
Before that he was also involved in the creation of Russell
Investments’ transition management business.
Transition management providers often need to demonstrate a
track record before securing new clients – 18
months is too short a period to build up such a track record.
It is known that Cantor had secured overlay-type mandates from
clients but no major transitions were reported.
The past few years have been turbulent for the transition
management business, with several exits and new entrants.
ConvergEx, JPMorgan and Credit Suisse all closed businesses in
2013 but more recently there has been a period of
Cantor was among the new entrants looking to capitalise on
efinancialcareers.com reported in June that FCA records
revealed that Cantor Fitzgerald had shed 10% of its registered
employees during the first six months of 2016, including some
Cantor Fitzgerald was contacted but declined to comment.