The combination of MFEX’s innovative distribution platform with Euroclear’s FundSettle post-trade operations expertise creates a unique and compelling offering for fund distributors and fund management companies globally.
Faced with increasing levels of complexity and cost, fund management companies require an efficient mechanism to access a broad network of end investors in a fragmented marketplace. FundSettle already streamlines back office processes by delivering a single point of access for order management, settlement and asset servicing, bringing greater efficiencies and cost savings.
With this transaction, MFEX and Euroclear’s complementary businesses are expected to produce significant value through revenue synergies, expanding the client service offering by creating a new funds market utility and a leading global provider of fund services.
Established in 1999, the MFEX Group is headquartered in Stockholm with over 300 employees internationally. Experts in global fund distribution, MFEX offers a complete solution for fund companies and distributors and has assets under administration of EUR 320 billion. Over 350 institutional clients use MFEX to access one of the world's largest range of funds with 80,000 funds from over 960 fund companies.
The parties have agreed not to disclose financial details. The transaction is expected to close in the second half of 2021, subject to customary closing conditions and regulatory approvals.
Lieve Mostrey, Chief Executive Officer, Euroclear commented: “We are delighted to sign this agreement to acquire MFEX Group. We expect MFEX’s broad fund distribution network, along with its talented people, to be very complementary to Euroclear as we continue to enhance our exceptional service, extend our customer proposition and grow our business.”
Jean Devambez, Chief Executive Officer, MFEX Group said: “Over the past years, we have together with Nordic Capital invested in our platform and continued to transform the fund distribution proposition. Euroclear is a great strategic fit for the next stage of our journey. By adding our respective strengths, we will be able to build an even better and stronger solution for fund distribution.”
MFEX co-founders and Board members, Olivier Huby and Oliver Lagerström added: “It has been a privilege to work closely with Nordic Capital and to grow MFEX together. We are delighted for MFEX to partner with Euroclear, which we believe will be a perfect combination for the future.”
David Samuelson, Board member of MFEX and Principal, Nordic Capital Advisors also commented: “MFEX is a true leader in its field. Since Nordic Capital became a majority owner in 2018, in partnership with the founders, MFEX has experienced continued strong organic growth and executed a series of strategic, value accretive acquisitions. MFEX has developed from being a Nordic leader in its industry to a pan-European leader with an emerging global presence. Nordic Capital is pleased to have been able to support this journey. Now it is the ideal time for Nordic Capital to hand over to Euroclear as the next step for MFEX.”
Euroclear group is the financial industry’s trusted provider of post trade services. Euroclear provides settlement and custody of domestic and cross- border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 897 trillion in securities transactions in 2020, representing 276 million domestic and cross-border transactions, and held EUR 32.8 trillion in assets for clients by end 2020. For more information about Euroclear, please visit www.euroclear.com.
As independent experts in global fund distribution, MFEX offers a complete solution for fund companies and distributors. The MFEX Group was established in Sweden in 1999 and is headquartered in Stockholm with offices in Paris, Luxembourg, London, Geneva, Kuala Lumpur, Milan, Madrid, Umea, Hong Kong, Singapore and Zürich. The main supervisory authority is the Swedish Financial Supervisory Authority (Finansinspektionen).
Today, MFEX is a pan-European leader with a global presence active in 52 countries on 5 continents with more than 300 employees. The company is divided into four main business areas: Trading and custody, Distribution agreement and rebate collection, Data and fund information and Due Diligence / AML & KYC (Global Fund Watch). More information is available at www.mfex.com
About Nordic Capital
Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested more than EUR 17 billion in close to 120 investments. The most recent fund is Nordic Capital Fund X with EUR 6.1 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, Denmark, Finland, Norway, Germany, the UK and the US. For further information about Nordic Capital, please visit www.nordiccapital.com