FE fundinfo and the Luxembourg Stock Exchange (“LuxSE”) today announce a new partnership which will result in FE fundinfo’s acquisition of Fundsquare, a leading fund registration and regulatory services provider in Luxembourg.
Fundsquare is a wholly owned subsidiary of LuxSE and, as part of the agreement, LuxSE will become an investor in FE fundinfo.
Ambitious plans for regulatory reporting
Fundsquare is a leading European provider of fund registration and regulatory reporting services, based in Luxembourg, and serves global asset managers and fund industry service providers. The company was established by LuxSE in 2013 to facilitate cross-border fund distribution through the collection and distribution of high-quality data and information in a cost-effective manner. Today, the company provides services that streamline, standardise and facilitate cross-border investment fund distribution from inception to filing and distribution. Located on the premises of LuxSE, and supported and developed by the exchange, Fundsquare has experienced strong growth over the past years and currently has 65 employees.
Fundsquare will build on FE fundinfo’s established and growing operation in Luxembourg, which today supports the publiFund platform, a centralised platform for data and documents that connects the whole ecosystem of a fund and allows global fund managers to manage the running of the fund throughout its lifecycle.
The combination of Fundsquare’s and FE fundinfo’s services is a unique opportunity to combine two complementary businesses and create a pan-European champion in fund data, reporting and infrastructure. As part of the acquisition FE fundinfo will establish a Centre of Excellence for regulatory reporting, based in Luxembourg. The acquisition further provides an opportunity for LuxSE and FE fundinfo to explore joint opportunities in ESG-related products and services, leveraging LuxSE’s experience in this domain and FE fundinfo’s own ESG capabilities from its CSSP acquisition.
An established industry champion
With a global workforce of more than 900 experts and offices in the UK, Europe, Asia and Australia, FE fundinfo is a leading, independent provider of fund data and technology expertise, serving fund managers, fund distributors and financial advisers. FE fundinfo operates to bring greater transparency and improving efficiency in the investment industry, and connects market participants, helping them to make more informed investment decisions.
FE fundinfo has grown rapidly organically and inorganically over recent years. Strategic acquisitions to support FE fundinfo’s broad range of clients across the investment industry have further expanded its data and technology operations, broadening and enhancing its reach in the provision and dissemination of fund data, regulatory services and supporting the overall infrastructure of the global fund industry.
Hamish Purdey, CEO of FE fundinfo said:
“Fundsquare’s reputation as an independent fund registration and regulatory reporting champion is renowned across Europe. We believe our services are highly complementary and the deal will bring together two industry leaders in fund data and reporting. By combining our services, the scope for greater efficiencies and product innovation will dramatically increase and the industry will benefit greatly from the enhanced product and service integration. Luxembourg will house our centre of excellence for regulatory reporting with comprehensive coverage of key European fund jurisdictions. We look forward to working together to enhance our services to meet the needs of the entire investment management value chain, including fund managers, distributors, fund service providers, regulators and investors.”
Julie Becker, CEO of LuxSE commented:
“Fundsquare is a highly successful company, and we are extremely proud of what the team has achieved so far. To continue to support Fundsquare’s future growth and especially its international expansion, we decided to team up with a strong player able to provide the necessary resources, competences and network. We have found the best partner in FE fundinfo and we are confident that this new ownership structure will bring the Fundsquare team many new opportunities for innovation, growth and scale in a rapidly changing environment. The Luxembourg Stock Exchange will remain involved through its stake in the FE fundinfo group, and we are delighted to form an active part in the company’s ambitious growth journey, both in Luxembourg and beyond.”
Maxime Aerts, Managing Director and COO of Fundsquare stated:
“Increased digitalisation combined with constantly evolving industry-specific regulations have led to an exponential growth in data. Growing competition in the fund industry, along with a definite need for more precise governance and risk mitigation require strong data management and disclosure capabilities. We see an enormous potential for Fundsquare to expand its reach beyond what we have already achieved. We are truly looking forward to forming part of the FE fundinfo group and are eager to explore new opportunities for our clients and our people. We share FE fundinfo’s vision and global ambitions, and we are excited to be at the heart of the group’s growth strategy for our industry.”