The Universal Investment fund services platform is already present in Germany, Ireland and Luxembourg, and has been beefing up its capacities in the grand duchy since the beginning of the year. Its new Canadian shareholder will likely contribute to further growth. Photo: Maison Moderne

The Universal Investment fund services platform is already present in Germany, Ireland and Luxembourg, and has been beefing up its capacities in the grand duchy since the beginning of the year. Its new Canadian shareholder will likely contribute to further growth. Photo: Maison Moderne

Universal Investment has become one of the fastest growing fund management companies in Europe. With a focus on strategic markets, Universal Investment will soon have the backing of Canadian pension fund CPP Investments in its new expansion phase.

Universal Investment the Luxembourg-registered fund management company European Fund Administration on 12 April. EFA’s four shareholders--Banque de Luxembourg, BCEE, Oddo BHF and Quintet Luxembourg--announced the decision to sell their stakes to the Frankfurt-based financial group.

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Since the beginning of 2022, Universal Investment had embarked on a series of operations to consolidate its activities in Luxembourg. On 1 February this year, Fisch Asset Management its Luxembourg management company and handed over the administration of its €4.5m in Luxembourg assets to Universal Investment. Two days later, Universal Investment teamed up with US investment firm Sustainable Insight Capital Management to  specifically aimed at attracting European institutional investors to Luxembourg.

Three strategic markets

As one of the leading European super mancos with its fund services platform for institutional investors and asset managers, Universal Investment is already largely active in Germany, Ireland and Luxembourg. These are the three most strategic markets for the European fund industry. The firm has €760bn in assets under administration, more than 470 funds and over 1,100 employees.

Such development needs fuel. On 8 September, Asset Servicing Times reported that CPP Investments, a Canadian pension fund with C$523bn (€395bn) in assets under management, would invest in Universal Investment. The transaction is expected to take place via CPP Investment Board Euro Sarl, a Luxembourg-registered entity with a balance sheet total of more than €5bn in 2021. The amount of the investment is not yet known.

The next stage of development

Following the announcement of the transaction with Canadian CPP Investments, Michael Reinhard, CEO of Universal Investment, explained: “Our development into one of the fastest growing European fund services platforms was a decisive factor for CPP Investments to invest.” From CPP Investments’ side, its managing director, Hafiz Lalani, commented: “Universal Investment is a company that we have followed with keen interest for many years and we have been impressed by its exceptional and resilient growth trajectory and market leadership in the European manco and fund administration sector.”

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Provided the transaction passes regulatory approval procedures, CPP Investments will then join Mantagu, a private equity firm, in the ranks of Universal Investment investors. For its part, Montagu has been present since 2017 in the capital of the super manco.

CPP Investments intends to use its investment capabilities to support Universal Investment’s next stage of development.

Originally published in French by and translated for Delano

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