FILE PHOTO: The Credit Suisse logo is pictured on a bank in Geneva, Switzerland, October 17, 2017. REUTERS/Denis Balibouse
ZURICH (Reuters) - Swiss bank Credit Suisse said on Tuesday it has combined its open-architecture business-to-business investment fund platform - Credit Suisse InvestLab - with Spain-based funds solutions provider Allfunds Group.
Credit Suisse will take an 18% stake in the combined businesses. The transaction will have a limited regulatory capital benefit and is expected to result in a 0.5% return on tangible equity increase for the financial year 2019, the Zurich-based bank said.
Allfunds provides services supporting the mutual fund distribution activities to hundreds of clients across Europe, Asia and Latin America.
Singapore’s sovereign wealth fund GIC and private equity investor Hellman & Friedman acquired Allfunds in 2017 from Intesa Sanpaolo Group, Santander Group, General Atlantic and Warburg Pincus, with an eye towards expanding its reach.
“Going forward, Credit Suisse will utilize the combined business platform to distribute mutual funds and ETFs,” the Swiss bank said in a statement.
Credit Suisse said its InvestLab platform offers distributors access to over 46,000 investment products from more than 170 providers worldwide, with assets under management of more than 140 billion Swiss francs ($144.21 billion).
Allfunds calls itself the world’s largest institutional fund distribution network, with a platform that offers some 78,000 investment products to financial institutions across more than 45 countries, with assets under management of more than 430 billion francs.
Reporting by John Miller, Editing by Tassilo Hummel and Sherry Jacob-Phillips