BMO Capital Markets has signed a deal with Greenwich, Connecticut-based Paloma Securities, L.L.C. to acquire its global securities lending team and assets used in its securities lending business, the companies said Monday.

Hedge fund Paloma Securities has offices in Greenwich, New York, Seattle, London and Melbourne, Australia. Paloma Securities is a subsidiary of the Paloma Funds.

“Expanding our securities lending operation fits with our strategy of disciplined growth that focuses on our core clients,” says Tom Milroy, CEO, BMO Capital Markets. “The addition of this lending team from Paloma Securities complements our existing capability in North America and provides us with a platform to build on for future opportunities in the United States and internationally.”

The transaction, which is subject to regulatory approval, is expected to close in mid-December. Terms were not disclosed.

IE