With the aim of refocusing on its core businesses of private banking and active investment management, Edmond de Rothschild (Europe) has announced that it has entered into a strategic agreement with Apex Group. The banking institution has decided to sell its third-party asset servicing business to the global financial services operator, thereby establishing a strategic partnership with the latter. Edmond de Rothschild will retain asset servicing for the group’s funds and dedicated funds.

A new partnership

“This agreement goes far beyond the simple transfer of activities,” explained Yves Stein, CEO of Edmond de Rothschild (Europe). “Above all, it marks the start of a new partnership which, for us, is extremely important. Apex Group becomes a strategic supplier to the bank, providing essential support for the management of our illiquid investments in private equity, infrastructure and debt. We are also selling our asset servicing business on behalf of third parties. In a rapidly consolidating market, staying competitive requires global capabilities, innovation and advanced technological solutions.”

Since 2003, through a series of acquisitions, Apex Group has positioned itself among the leading players in the market. The company specialising in financial services has developed a global presence, with more than 12,000 people employed in 112 offices in 45 countries around the world. Worldwide, it administers around $3trn in assets, of which some €600bn are managed in Luxembourg.

Increased capacity

To this amount will be added the €20bn in assets previously administered by Edmond de Rothschild, a third of which are illiquid investments managed by Edmond de Rothschild Asset Management. The remaining two-thirds are assets in vehicles owned by third party clients.

“We are very pleased with this agreement and the opportunity it gives us to support the Group in its development through the global solutions we have put in place,” commented Peter Hughes, founder and CEO of Apex Group. “For a number of years, we have been investing in technology platforms to support players like Edmond de Rothschild, offering a comprehensive range of solutions to manage a very wide range of assets. The use of digital technology, in particular, makes it possible, for example, to democratise private assets, which are currently very much in demand among private banking clients.”

These technological capabilities are intended to support the development of the banking group’s activities in the service of high net worth clients, implementing an investment approach driven by strong convictions. “We wanted to be able to rely on a quality partner capable of meeting both our own needs and the requirements of the players we currently serve at Edmond de Rothschild Asset Management,” said Stein. “With Apex, a leading group in its field, given its success and capabilities, we can look to the future with confidence.”

115 jobs to be integrated into Apex Group in Luxembourg

Through this agreement, Apex Group will also strengthen its position in Luxembourg.

Although the two parties do not wish to disclose the amount of the transaction, the agreement provides for 115 third-party client staff from Edmond de Rothschild’s Asset Servicing business in Luxembourg to join the local Apex team, bringing the total number of employees in Luxembourg to 1,200. “The integration of this talent is also a strategic challenge for us. We are delighted to be able to welcome these wealth management skills. They will be a welcome addition to our teams, helping to ensure a smooth transition. Beyond that, they should enable us to strengthen and support our development by meeting the expectations of a wealthy clientele,” added Hughes.

The transaction still requires regulatory approval, which is expected by mid-2024. The transaction could close next September.

This article was first published in French on . It has been translated and edited for Delano.