Credit Suisse and Allfunds Group have entered into an agreement to combine the Credit Suisse open architecture B2B investment fund platform, Credit Suisse InvestLab, with Allfunds.
The agreement will create a global fund distribution platform with combined assets under administration (AuA) of more than CHF 570bn and distinct distribution competences. The combined business leverages the global wealth management footprint of Credit Suisse and the technological innovation of Allfunds, further enhancing the service offering to asset managers and distributors worldwide.
The transaction comprises the transfer of all shares in Credit Suisse InvestLab, including the service agreements, and the related distribution agreements of Credit Suisse to Allfunds Group. As part of this combination, Credit Suisse will become a minority shareholder of up to 18% in the combined business and will be represented at the Board. Going forward, Credit Suisse will utilize the combined business platform to distribute mutual funds and ETFs.
The transaction, which is subject to customary closing conditions, including anti-trust and regulatory approvals, will be implemented in staggered closings. Closing of the transfer of Credit Suisse InvestLab is expected in Q3 2019. Subsequent transfer of the related distribution agreements by Credit Suisse is expected to be completed in Q1 2020.
Upon the projected closing in Q3 2019, the transaction will have a limited regulatory capital benefit and is expected to result in a 0.5% RoTE uplift for the financial year 2019 for this transaction alone, all other things being equal.
Credit Suisse International acted as financial advisor to Credit Suisse in connection with the transaction.
About Allfunds Group
Allfunds Group is the world’s largest institutional fund distribution network. Its platform offers more than 78,000 investment products to financial institutions across more than 45 countries, AuA of over CHF 430bn.
About Credit Suisse InvestLab
Credit Suisse InvestLab is the open architecture B2B investment fund platform of Credit Suisse Group. The platform offers distributors access to over 46,000 investment products from more than 170 providers worldwide, with AuA of over CHF 140bn.