Clearstream Closes $423 Million Fondcenter Acquisition

Thursday, 01/10/2020 | 09:25 GMT by Arnab Shome
  • UBS will remain the minority stakeholder acting as a strategic partner.
Clearstream Closes $423 Million Fondcenter Acquisition
Finance Magnates

Clearstream, the post-trade service provider of Deutsche Börse, has completed the Acquisition of a majority stake in Fondcenter AG, a UBS’s fund distribution platform, for CHF 389 million (around $423 million).

The two parties agreed on the deal in January, but it was closed on Wednesday. Clearstream now owns a 51.2 percent stake in the B2B fund distribution support platform, while UBS is still holding the rest.

With this deal, Clearstream merged its existing Fund Desk with the Fondcenter business, forming Clearstream Fund Centre. The new platform has over $290 billion in assets under administration, and the management is anticipating a double-digit revenue growth over the next few years.

“Fondcenter’s fund platform business perfectly complements Clearstream’s existing fund distribution support services,” Bernard Tancré, CEO of Fondcenter and head of investment fund services product at Clearstream, said.

“With the newly combined Clearstream Fund Centre, fund distributors will now have access to contracts covering over 70,000 funds worldwide. We are delighted that we can offer this comprehensive portfolio to our existing and future client base.”

Moving Forward with Everyone

The announcement detailed that UBS will act as a strategic partner of the platform and also committed to a long-term agreement for the provision of services by Clearstream, including to continue using the Fund Centre platform.

“In Clearstream, we have a trusted owner to further develop and grow the business,” UBS Asset Management head, Michael Kehl added. “The combined Fund Centre platform is well-placed for the future, and we wish the team every success as they take the business forward.”

Clearstream, the post-trade service provider of Deutsche Börse, has completed the Acquisition of a majority stake in Fondcenter AG, a UBS’s fund distribution platform, for CHF 389 million (around $423 million).

The two parties agreed on the deal in January, but it was closed on Wednesday. Clearstream now owns a 51.2 percent stake in the B2B fund distribution support platform, while UBS is still holding the rest.

With this deal, Clearstream merged its existing Fund Desk with the Fondcenter business, forming Clearstream Fund Centre. The new platform has over $290 billion in assets under administration, and the management is anticipating a double-digit revenue growth over the next few years.

“Fondcenter’s fund platform business perfectly complements Clearstream’s existing fund distribution support services,” Bernard Tancré, CEO of Fondcenter and head of investment fund services product at Clearstream, said.

“With the newly combined Clearstream Fund Centre, fund distributors will now have access to contracts covering over 70,000 funds worldwide. We are delighted that we can offer this comprehensive portfolio to our existing and future client base.”

Moving Forward with Everyone

The announcement detailed that UBS will act as a strategic partner of the platform and also committed to a long-term agreement for the provision of services by Clearstream, including to continue using the Fund Centre platform.

“In Clearstream, we have a trusted owner to further develop and grow the business,” UBS Asset Management head, Michael Kehl added. “The combined Fund Centre platform is well-placed for the future, and we wish the team every success as they take the business forward.”

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6338 Articles
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