WisdomTree Investments will acquire a majority stake in U.K.-based exchange-traded products provider Boost ETP to launch its business into Europe, confirmed a WisdomTree spokesman.
The deal is expected to close in the first half of the year; terms were not disclosed.
The spokesman said the new entity, WisdomTree Europe, will target institutional investors — including pension funds — in Europe.
WisdomTree will invest $20 million over the next four years to fund the building of a European platform and operations, which will be led by Boost’s co-founders, Hector McNeil and Nik Bienkowski. Boost had $50 million of assets under management, according to a statement on its website, dated Jan. 21.
WisdomTree intends to launch a range of UCITS ETFs under the WisdomTree brand, and also will manage and grow Boost’s range of short and leveraged ETPs.
WisdomTree will own 75% of the Europe entity, with existing Boost shareholders holding a combined 25%, according to a news release by WisdomTree. The U.S. ETF sponsor and money manager, which has $34 billion in assets under management, will acquire the remaining 25% ownership at the end of four years.
“As the second largest ETP market after the U.S., Europe is a strategically important market and is the next natural step given our stage of development,” said Jonathan Steinberg, CEO and president of WisdomTree, in the news release. “Europe will represent our most significant international effort to date, and we are pleased to enter this market with an accomplished team.”
