Swiss bank Credit Suisse has combined its open-architecture B2B fund platform InvestLab with Spain-based fund solutions provider Allfunds to create a wealth platform with over €500bn in assets under administration.
The agreement, subject to customary closing conditions, would lead to a combined business that would distribute over 78,000 funds and ETFs to more than 700 distributors across 45 countries.
Credit Suisse will remain a minority shareholder with a distribution relationship while majority ownership will be held by private equity firm Hellman & Friedman and Singapore sovereign wealth fund GIC.
With this combination, we continue our global growth and commitment to enhance our service offering to fund houses and distributors by offering the most innovative technology, digital solutions, and data analytics available in the market"
The transaction includes the transfer of all shares in Credit Suisse InvestLab, its team, technology and related service and distribution agreements by Credit Suisse to Allfunds Group. InvestLab's management team will take senior leadership positions within the combined business and Credit Suisse will use the platform as part of its client offering.
"The operation will allow Allfunds to accelerate and expand its investment into the development of new services and solutions to the benefit of the funds eco-system, comprising of asset managers, fund distributors and other intermediaries," the company said in a statement.
The deal will offer Allfunds significant exposure to the Swiss market.
Juan Alcaraz, CEO of Allfunds, said: "With the combination of InvestLab and Allfunds we are creating a stronger player in the platform and wealth technology space. Credit Suisse is one of the most esteemed wealth management brands in the world and their cooperation with Allfunds is testament to Allfunds' attractive proposition in the sector.
"We are truly excited to welcome the InvestLab team to Allfunds. With this combination, we continue our global growth and commitment to enhance our service offering to fund houses and distributors by offering the most innovative technology, digital solutions, and data analytics available in the market."
According to Allfunds the transaction will be implemented in "staggered closings." Closing of the transfer of Credit Suisse InvestLab to Allfunds is expected during the third of quarter of 2019 while subsequent transfer of the related distribution agreements by Credit Suisse is expected to be completed in the first quarter of next year.