The four shareholders of Luxembourg-registered fund management company European Fund Administration have decided to sell their shares to Universal Investment Group. Created in 1996, EFA is the result of a joint venture between Banque de Luxembourg, BCEE, Oddo BHF and Quintet Luxembourg.
In a press release, Universal Investment announced on 12 April that it had reached an agreement with the four shareholders of EFA to acquire the company. The transaction is expected to be completed in the second half of this year, subject to regulatory approval by the Luxembourg Financial Sector Supervisory Commission (CSSF).
Fernand Reiners, chairman of EFA’s board of directors, said the transaction is in line with the continuation of EFA’s activities: “Two success stories, we are confident that they will continue by entrusting EFA to Universal Investment Group. As strategic clients, the current shareholders are committed to the long-term success of EFA as part of the Universal Investment Group.”
Two success stories, we are confident that they will continue by entrusting EFA to Universal Investment Group. As strategic clients, the current shareholders are committed to the long-term success of EFA as part of the Universal Investment Group
The company specialises in fund administration and private asset management services, as well as middle and back office services in Luxembourg and France. Following the merger, EFA will act as Universal Investment’s international platform for investor services in Luxembourg and France, complementing the group’s main platform in Frankfurt for Germany, Switzerland and Austria.
Entering new markets
In addition, both companies aim to “significantly” develop their services in the Nordic countries, France and the Benelux countries. It is also planned that EFA will keep its own commercial entity within the Universal Investment Group, acting under the group’s brand.
At the end of 2020, EFA employed 496 people. It administered €166.8bn in assets, in 2,703 funds. EFA offers its services to around 180 clients in 23 countries. Its main clients are banks, asset managers, insurance companies, wealth managers, family offices and institutional investors.
Universal Investment Group is one of Europe's leading fund services platforms, managing €750bn of assets in around 2,000 mutual and institutional investment funds. The group has over 1,000 employees and is based in Frankfurt, Luxembourg, Dublin, London, Hamburg and Krakow.
EFA will be a perfect fit for Universal Investment and our growth story. We have been EFA’s business partner for several years and are impressed by the commitment and skills of its staff, the quality of its services and its success in becoming more than a fund company
Michael Reinhard, CEO of Universal Investment Group, sees a real synergy with EFA. As such, he stated: “EFA will be a perfect fit for Universal Investment and our growth story. We have been EFA’s business partner for several years and are impressed by the commitment and skills of its staff, the quality of its services and its success in becoming more than a fund company.”
Developing a super manco
One of Universal Investment Group’s strategies is to go global, taking advantage of the Luxembourg and Ireland fund domiciles. The CEO of Universal Investment Group said: “The partnership with EFA is another important step, not only in achieving our goal of becoming Europe’s leading investor services platform and super manco, but also in our ambition to provide our clients with the full range of investor services.”
Last February, Fish Asset Management dissolved its Luxembourg management company and of its €4.5bn of Luxembourg assets to Universal Investment Group.
Also in February of this year, Universal Investment Group to launch the U.S. UI I - SICL Equity Fund in Luxembourg, specialising in sustainable investments. The aim of this transaction was to target European institutional investors in Luxembourg and thus give them access to SICM’s US strategy.
In Luxembourg, Universal Investment Group offers a service platform for funds. The group has €105bn in assets under management in Luxembourg, a figure that has grown by almost €1bn over the previous year.
Originally published in French by and translated for Delano.