Universal Investment Grouphas entered into a joint venture with Alumia, which Universal Investment on 27 September 2023 was a significant move that augmented its existing role in the fund services and super manco sector.

Alumia, headquartered in Luxembourg and regulated by the markets in financial instruments directive (Mifid), aimed to offer innovative and high-quality investment strategies to a diverse clientele, including asset managers and corporate and family asset owners.

David Saab, Alumia’s chief executive officer, brought with him two decades of banking and asset management experience, having worked with notable firms such as JP Morgan and Rothschild. Saab, also a co-founder of Aperture Investors, underscored the increasing complexities and costs associated with building a compliant, experienced sales force that also leverages digital channels.

In terms of the joint venture’s structure, the majority of shares were held by Alumia’s management, while Universal Investment Group maintained a significant minority stake, according to the press release. Katja Müller, Universal Investment’s chief customer officer, emphasised the importance of active fund distribution capabilities as a differentiator for third-party mancos and alternative investment fund managers. Müller stated that partnering with Alumia represented an important milestone in Universal Investment’s strategy to expand its distribution capabilities further.

Before forming the joint venture, Universal Investment Group had already invested significantly in its own fund distribution team, which targeted primarily institutional investors in German-speaking regions. Universal Investment stated that Alumia would extend these efforts by actively distributing in France, Benelux, Southern Europe and beyond.

Universal Investment found that both firms stood to gain from the synergies of this collaboration, aimed at enhancing fund distribution capabilities and extending outreach to new client segments.