Scandinavian bank SEB is selling its Luxembourg regulatory infrastructure business to FundRock Management Company.
FundRock has signed a share purchase agreement to acquire SEB Fund Services, which offers third-party management company, or “ManCo”, services to Nordic asset managers with Luxembourg-based investment funds.
Third-party ManCo providers offer EU regulatory substance to fund managers that do not have their own management companies established in domiciles where their funds are domiciled.
FundRock will gain clients with €20 billion assets under management through the deal and 20 employees.
The sale is subject to regulatory approval and final due diligence, but the firms intend to complete within the next “two to three months”.
“This move is part of our five year plan and provides a strong foundation to reach our goal of becoming the premier independent [traditional and alternatives ManCo] in Europe with a full pan-EU offering in the three major fund centres [of] UK, Ireland and Luxembourg,” said Revel Wood, group chief executive of FundRock.
FundRock group handles more than 300 funds based in Luxembourg, the UK and Ireland with €45 billion in assets under management, extending to €65 billion with the SEB deal.
SEB, however, will keep an interest in Luxembourg’s ManCo business.
“We will continue to offer management company services via an exclusive cooperation agreement with FundRock thereby strengthening SEB’s customer offering,” said Göran Fors, deputy head of investor services at SEB.
“It will also be a good solution for our employees, who will join an operation of large scale with offices in the major fund centres that is fully specialised and focused in this service area,” he added.
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