Brussels-based clearing house Euroclear agreed to acquire global digital fund distribution platform MFEX Group from private equity firm Nordic Capital and MFEX's founders and management, a spokesman said.
Terms of the deal were not disclosed, a Nordic Capital spokeswoman said. The transaction is expected to close in the second half of 2021 and is subject to closing conditions and regulatory approvals.
Euroclear will acquire Nordic Capital's majority stake in the firm as well as the minority stake held by MFEX founders and management.
Stockholm-headquartered MFEX, which has €320 billion ($380.8 billion) in assets under administration and is used by 350 institutional investors to access 80,000 funds from over 960 companies, will be combined with Euroclear's FundSettle post-trade business, the release said. Euroclear wants to expand its settlement and asset servicing offering by creating a cost-saving utility for fund distributors and money managers globally.
Nordic Capital invested in the MFEX platform to grow its assets under administration, creating the second-largest European platform for fund distribution, the spokeswoman said. Euroclear is well-placed to support the next phase of MFEX's growth and development, she added.
Lieve Mostrey, CEO of Euroclear, said in the release: "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, CEO of MFEX Group, added in the release: "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."
Nordic Capital made its investment in 2018.