Clearstream Closes $423 Million Fondcenter Acquisition

UBS will remain the minority stakeholder acting as a strategic partner.

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.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

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.

Suggested articles

The FBS CopyTrade Team Presents a New 'FBS CopyStar' ContestGo to article >>

“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.”

Got a news tip? Let Us Know